View of Manufacturing Industries in Western Maharashtra about Octroi/LBT.

[SANJAY ARANAKE]

SMMIDCMA/FAM/2014-15/10                                       26/06/2014

 

To,

Shri.Mohan Gurnani - The President,

Federation of Association of Maharashtra,

510, Bharat Chambers, 52-C, Kranti Sinha

Nana Patil Marg, (Baroda Street),

Camac Bunder, Mumbai-400 009.

Tel: 2371 0506 I 23n 8338, Fax: (022) 23n 8738

E-mail: fa...@vsnl.net

 

Subject:-View of Manufacturing Industries in Western Maharashtra about Octroi/LBT.

 

Dear Sirs,

With reference to out telephonic talk & your proposed meeting on date – 27^th June 2014, we wish to express views of Manufacturing Industries in Western Maharashtra as below:-

 

1] No Octroi/ No LBT:- In fact, during the imposition of VAT & later, increase in VAT from 4 to 5% & 10 to 12.5% - then, Finance Ministry of Maharashtra had promised to abolish the Octroi/LBT without any alternative tax & we insist for this.

 

2] Increment in VAT as alternative to LBT as per Gujarat Model:- If we have to choose from some alternatives for financial package to local bodies – we prefer to have alternative as increment in VAT on sales from 5 to 6% or 12.5% to 14%; all over Maharashtra to all corporations, Nagarpalika & Grampanchyat. In fact, Gujarat Models works on same principal.

 

3] Surcharge on Purchase thru’ Sales Tax Department:- We are not in favour of this, due to following reasons:-

 

I] Non uniform Tax:- It is not uniform tax for all over Maharashtra & Manufacturing Industries in corporation area – shall be non-competitive due to increase in purchase cost.

 

II] Refund of Entry Tax on Purchase for Manufacturing Industries – in Maharashtra for Export outside Corporation Limits:- This is very very important issue for Manufacturing Industries in Maharashtra. Generally, the Industries based in one area – after processing – export the goods out of that area to other area. As per Octroi/ LBT/ CESS/ Entry Tax Rules – present in Maharashtra, Manufacturers like Traders, do not get 90% refund – for following reasons:

 

v This provision is mainly for TRADERS community & not applicable to industries, as there are going to be changes in goods during Manufacturing, Processing or Production. (The changes in form or appearance is prohibited / restricted in present law of Entry Tax)

 

v Thus, this is discrimination against Industries & manufacturers, as the same clause is applicable to Traders only.

 

v Also, as the Manufactured goods are again re-exported out of corporation Limit & there is no Consumption of the said products within the corporation limits.

 

v To compare this with Custom Duty (Entry Tax), while importing goods in country & again re-exporting outside country – there is provision of Refund of Custom Duty.

  

Under these circumstances, we hereby request you to kindly consider these facts & figures & take the needful decision.

All the good wishes for meeting & looking forward to good outcome,

 

Thanking You,

Yours Faithfully,

 

Sanjay Aranake – President (9373054560) Sangli Miraj MIDC Manufacturers Association, Miraj	Sachin Patil – President (9890549777) Vasandada Co-operative Industrial Estate, Sangli
Mr.Arvindrao Marathe – President (9970577177) Govindrao Marathe Co-operative Industrial Estate, Miraj	Mrs.Prabhatai Kulkarni– President  (9822015465) Deccan Manufacturers Association, Sangli

 

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