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Sunday 19 November 2017
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Relaxation in VAT given to CSD canteens: Prakash Chaudhary

Shimla: Excise and Taxation Minister Prakash Chaudhary stated that present State Government had registered the CSD canteens in Himachal Pradesh under Himachal Pradesh Value Added Tax after their request to give relaxation on taxes adding that now they were paying the taxes at the rate of 4%. He said that now these canteens were being issued ‘C’ form for goods being purchased from Punjab enabling them to pay only two percent tax to the Punjab Government and four percent to the Government.

He said that earlier the CSD canteens had to pay tax on 14.3 percent and 6.05 percent rates to the Punjab Government on the goods being purchased from Punjab. He said that these canteens were not registered under Himachal Pradesh Value Added Tax Act, 2005 due to which neither Form ‘C’ could be issued to them nor relaxation on tax rates.

Chaudhary said that Direct Benefit of the items purchased from Punjab was being taken by the Punjab Government on above said tax rates adding that Punjab Government reduced the VAT rate to 6.05 percent on the items being purchased by CSD canteens situated in Punjab by issuing a notification on 18th March, 2013. He said that the CSD canteens in Himachal Pradesh were not registered under Himachal Pradesh Value Added Tax Act so they were paying tax to the Punjab Government on the goods being purchased from Punjab on the rates fixed by Punjab Government.

Excise and Taxation Minister said that Punjab Government had imposed 6.05 percent tax on Punjab CSD canteens for the goods to be purchased whereas Himachal Pradesh had imposed only four percent VAT on the goods to be sold by CSD canteens situated in Himachal Pradesh. He said that they had to pay only two percent tax on the goods purchased under ‘C’ form from other States including Punjab. Thus, the tax in Himachal Pradesh was 0.05 percent lower than the Punjab.

He said that this relaxation had not only benefited the State Government but also to the beneficiaries of the CSD canteens by registration and ‘C’ form facility.



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