The Engineering Export Promotion Council (EEPC) has called for the central government intervention for an immediate refund of VAT, which is due since 2005-06. | |
| According to the council, Rs 100 crore VAT refund is pending since its inception in Jul, 2005. |
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| "Most exporters in West Bengal are yet to receive VAT refund inspite of having paid income tax on refund due and unless it is refunded in time, the working capital of the smaller units in particular gets affected considerable. Hence we believe that the centre must step in as the sate government is not responding," said Rakesh Shah, chairman of EEPC. |
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| He even claimed that there has been absolutely no response on behalf of the state government despite of repeated requests. |
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| "Everybody appreciates the problem, but no steps have been taken and it seems that the West Bengal government has no intention to refund the VAT claims," Shah said while talking with the media, in the sidelines of the annual regional award presentation ceremony of the council. |
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| Shah also added the stringent legislative norms are also one of the reason behind the delay of the refund process. |
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| "The sate has an unique legislative norms, which says that for being eligible for refunds 75 percent of the goods must be exported. Apart from this, in order to qualify for quarterly payments, it is to be certified by the supplier that the VAT collected has been deposited in concerned the department, which is very confusing," he explained. |
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| Shah also cited the example of the states like Tamil Nadu, Andhra Pradesh and Maharashtra where VAT is refunded within 90 days of the submission of the claim. |
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| Meanwhile, addressing the gathering, state minister for the MSME, Manab Mukherjee said that the issue would be discussed in the state cabinate meeting which was scheduled later in the day. |
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| "I can assure you that the issue of VAT refund would be discussed when the cabinet meets later today," the minister said. |
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| Commenting on the cluster based growth of the SME sectors in the state, Mukherjee said that currently, work on 42 clusters at various stages is underway. |
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| "By the end of Eleventh Plan we are planning to have 220 clusters across the state," he added. |
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| The minister also said the sate government would promote public private partnership through special purpose vehicle for the development of such clusters. |
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