Auto parts’ association thanks govt for revised VAT

The Auto Parts Manufacturers Association (India) on Wednesday thanked the government of Punjab for the recently announced proposal for the reduction in the Value-added Tax (VAT) on iron and steel items.

In a press note released to the media, association president Gurpargat Singh and general secretary Ranjodh Singh expressed their views, saying that this step of the state governemnt would be highly beneficial to iron and steel rolling mills and pipe manufacturers.

Under the new structure, it has been proposed to reduce VAT from 4.95 per cent to 2.5 per cent, with surcharge of 10% on scrap. The order will be notified and implemented from February 1, 2014.

Gurpargat Singh Kahlon also appealed to the state government to reduce VAT on auto parts from 12.75% to 4.5% at par with tractor and combine parts due to the reason that most of the items of auto parts are used with same materials, sizes and specifications but the VAT rate on auto parts is 12.75% while on tractors and combine parts it is 4.5%. "Due to this difference and high rate of VAT on auto parts, this industry has become uneconomical and uncompetitive. For the last several years our association is demanding continuously for the reduction of VAT on auto parts which would be big relief and give a big boost to this sector."

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus