AHMEDABAD: Good news for Gujarat based chemical manufacturing business, both dealing in pharmaceutical and textile sector that the state commercial tax department has finally agreed on the issue of reducing rate of VAT, Value Added Tax for some 70 chemical units from approx 15% to 5%. New interest rates will immediately come to an effect.
Apart from this, a notification by state government provides an information 4% tax will be levied on the stainless steel products in case of any further material imports from cities outside Gujarat. Tax has been withdrawn levied over entry of silk yarn.
VAT rates were raised by state government some six months ago amounting to 5-15% which brought affect over the new and existing investments in pharmaceutical and textile business outside Gujarat. This worked as a kind of wake up call for the state government, effect of which is that rates are again at par now as per the states, said Mehul Gandhi, President of GSTBA Gujarat Sales Bar Association.
Posts Tagged ‘Textile Industry of India’
VAT reduced for pharma and textile sector
Friday, February 19th, 2010Signs of revival in Textile Industry
Thursday, February 18th, 2010New Delhi: Textile Industry, largest employment provider after agriculture sector, is finally out of economic recession, declares Mr. Dayanidhi Maran, Textile Minister, who had been dragging all around the world for searching new and improved markets for Indian garment and clothing throughout the downturn.
Signs of revival can be seen in the Textile Industry of India symbolizing it to be the very first sector to rebound in the country, said Maran, who quoted this in a CII release at roundtable conference in Mumbai on 16th February 2010. Recession can be seen as complete over since order book of the garment manufacturers are full up till June, he added.
Textile sector of India, that provides majority of contribution to the earnings by exports, showed growth of 5% during December which was 7% during January as against a negative rate of growth that was 15% from April till November 2009. Exports of Textile had shrunk up to 2% to approx $21.75 billion during 2008-09 due to the low ranging demands from the western markets as an effect of the economic downturn.
Since orders were dried up, units in thousand were shut and there was a loss of around 7lakhs during 2008-09, as per the estimate by CII. Around 35 million people are employed by this sector. Maran had been laying stress for the development of bigger markets other than US as an effective alternative for leading business delegations to other countries.