induction furnace industry resents fresh vat proposal | chandigarh news - times of india
LUDHIANA: Ludhiana induction furnace industry is dissatisfied with the VAT calculation proposal (VAT) He said the action would further aggravate their problems. At one meeting, no representative of the Ludiana forces was convened and the proposal was submitted to the deputy minister. KK Garg, president of the induction furnace Association in Northern India, reported that the Mandi Gobindgarh and Ludhiana steel industries are completely different, and the main production of Mandi Gobindgarh is ludhiana to produce 100% industrial steel, requiring strict quality control, therefore, the electricity consumption is higher. Power consumption is further increased while manufacturing specific chemical and alloy steel. He said that the government did not understand this, and therefore the proposal by Mandi Gobindgarh to calculate VAT based on electricity consumption has been made. They had no say because there was no representative of the Ludhiana induction furnace industry at that meeting. Association secretary Dev Gupta said that calculating VAT based on electricity consumption is completely impractical and will prove to be dead -- The death knell in the Ludhiana induction furnace industry, which is already on ventilator support. He also said that most of the steel produced by the Rudiana steel industry is raw materials and is being sold to the engineering industry that accepts input tax credits (ITC) In the VAT that we pay, but in the new proposed plan, the buyer industry will not be able to obtain the input tax credit, so the price of the steel will be due to Rs1, 500- 2,000 PMT, which is not the case in the case of Mandi Gobindgarh, where steel is sold for final consumption and does not require ITC \"We may also stress that GST will be introduced in the coming months as suggested by the central government, so, any change in VAT to the specific tax structure of the assumed parameters will be a stopgap and we will be 30 years ago, he added: \"Given that the VAT or GST system is a future tax structure. \". At the same time office The head of the association called on the government that before any changes to the VAT system, their association must be considered as the mother industry of many affiliated small businesses -- Any change in the unit of scale and fastener industry in Punjab will cause problems for all of these industries. They are rather suggesting that the Punjab government, if there is any concern about the tax reduction due to the VAT reduction from 4. 5 to 2. If the VAT rate is restored to 4 from February 1, 2014, there is no reservation in the Ludhiana steel industry. 5. Ludhiana has more than 50 induction furnaces and 40 rolling mills.