TN cuts Compounding Tax under VAT by 0.50

Chennai, Dec 10: The Tamil Nadu Government today announced a 0.50 per cent reduction in the Compounding Tax payable by the traders.

According to an official press release here, the reduction would apply to those traders whose annual turnover was Rs 50 lakh.

Under the recently passed VAT Bill, traders with annual turnover of less than Rs ten lakh were exempted from registration and payment of VAT.

Those having annual turnover of between Rs ten lakh and Rs 50 lakh were to pay one per cent Compounding Tax.

The government's decision would benefit more than a lakh of traders across the state, it added.

UNI