VAT on all types of yarn reduced from 6.05 to 3.3 percent in Punjab
Author(s): City Air NewsChandigarh, March 31, 2016: The Punjab Government has taken a revolutionary step which would give further impetus to textile industry. As part of its industry friendly policy the rate of VAT on all types of yarn...
Chandigarh, March 31, 2016: The Punjab Government has taken a revolutionary step which would give further impetus to textile industry. As part of its industry friendly policy the rate of VAT on all types of yarn including cotton yarn (except 100% polyester filament yarn) has been reduced from 5.5% plus 10% surcharge i.e 6.05% to 3.3% plus 10% surcharge i.e. 3.63% with effect from 1st day of April, 2016 vide notification dated 31st March, 2016.
Disclosing this, an official spokesman said that it was reported in some sections of media that in spite of the announcement made in the Budget Speech for the year 2016-17 regarding reduction of VAT on all types of yarn including cotton yarn (except 100% filament yarn), the Department of Excise and Taxation has not honored the same. It is pertinent to mention here that all the Budget announcements come into force from 1st day of April of the Financial Year for which budget is announced. If this notification would have been done in mid of the month, it would have posed problems for the dealers in maintaining the accounts. The Department made all the preparations for honoring the budget announcement in time and the same has been brought into force w.e.f. 1st day of April, 2016 as announced in Budget Speech for the year 2016-17.