Bill to amend TN Value Added Tax introduced in assembly

Chennai, May 09 (UNI) A Bill to amend the Tamil Nadu Value Added Tax Act 2006, was introduced in the State Assembly today by Commercial Taxes Minister S N M Ubayadullah.

The main opposition AIADMK opposed it in the introduction stage and the same was recorded in the Assembly.

The State entered the VAT regime from January one this year.

The objective of the bill was to amend various entries in the first, second and fourth schedules of the Act, to give effect to the tax relief measures announced in the State budget for the year 2007-08.

The Amendments were required to various provisions so as to define turnover of dealers, who purchase and sell goods exclusively within the State, rate of tax on spare parts, components and accessories, disallowing option to pay tax under compounding system for dealers, who purchase goods from outside the State and use in execution of works contract in the state, to extend the scheme of payment of tax at compounding rate by dealers in bakery products.

The bill was also to make consequential amendment to the Act in pursuance of the amendment made to Central Sales Tax Act, 1956 (Central Act 74 of 1956) reducing the rate of tax from four to three per cent with effect from April one.

Bills to amend the Tamil Nadu Manual Workers (regulation of employment and conditions of Work) Act, 1982 and to amend the Tamil Nadu Public Librarier Act, 1948, were also introduced in the State Assembly.

UNI