PCC plea to Pondy Govt on VAT

Puducherry, Feb 27 (UNI) The Puducherry Chamber of Commerce (PCC) today urged the administration to provide compensation to traders in the form of grant or subsidy for the levy of four per cent Central Sales Tax (CST) if the government introduced Value Added Tax (VAT).

In separate letters to Lt Governor Mukut Mithi and Chief Minister N Rangasamy, PCC President N Govindasamy said the administration had taken steps for introduction of VAT beginning April one making CST levy unnecessary.

The consquences of levying VAT along with CST would affect both the buyers and the sellers. Besides, the Tamil Nadu Government was also collecting Entry Tax.

Mr Govindasamy said raw materials used for production here were sourced from outside and finished products sold to Tamil Nadu or routed through the adjoining state thereby becoming liable to Entry Tax levy by Tamil Nadu government.

This would severely hit business in the union territory forcing industrial units to either close down or shift to other places.

UNI