Lucknow, Feb 25 (Inditop.com) With a view to boosting exports from Uttar Pradesh, the Mayawati government has announced a major tax incentive – a full waiver of trade tax – to all export-oriented industrial units across the state, an official spokesman said Thursday.
From April 1, the state government has decided to give 100 percent relief in trade tax to exporters on the turnover of direct sale to or direct purchase by manufacturer-exporter of any raw material, processing material, consumable stores, spare parts, accessories, components, lubricants and fuel other than petrol and diesel, he said.
Besides, packaging materials for use in the manufacture of goods by manufacturer-exporter or in the packing of goods manufactured by such units would also be exempt from trade tax, according to the formal notification issued Wednesday night for providing the relief under the Uttar Pradesh Value Added Tax Act, 2008.
At present, as per the act, the tax was payable by manufacturer-exporters on purchase of raw material etc. with the provision for refund of such tax within 30 days of payment.
“This entailed a cumbersome process for the exporters with wastage of precious time and resources, hence the need for a change in the policy was felt,” the spokesman said, but warned if the manufactured goods were not exported out of India, the manufacturer-exporter would be liable to pay the prescribed tax on the purchase of such goods and also interest from the date of purchase of such goods.
As a safeguard against misuse of this new facility, penal action under Section 54 of Uttar Pradesh Value Added Tax Act, 2008 and also under Indian Penal Code has been provided.
The bulk of Uttar Pradesh’s exports are handicrafts, electronics and leather goods.
