Bhubaneswar: Although the state government is providing tax subsidy to fly ash bricks manufacturing units on purchase of cement, many such brick kiln owners are reportedly selling the subsidised cement in the open market in an attempt to make easy money.
Revealing the unholy practice of such fly ash brick manufacturer dealers, special DG (Vigilance) RP Sharma has recently written to commercial tax commissioner Saswat Mishra and sought his cooperation in this regard.
In his letter to Mishra, Sharma stated that during raids by sales tax wing of vigilance divisions at cement racks in Cuttack and Mancheswar railway stations, it was found that the brick manufacturers are illegally exporting huge quantity of cement and evade legitimate tax.
Responding to the letter, Mishra urged the state government to impose 5 per cent value added tax (VAT) on fly ash brick manufacturing units.
Some fly ash brick making units have purchased cement and sold the entire amount without even setting up their manufacturing facility. Apart from loss of revenue, this illegal sale of cement adversely affects the amount of tax that would have otherwise accrued from registered cement dealers,”Mishra said in his letter to finance secretary TK Pandey Monday.
Imposition of VAT would not affect the genuine beneficiaries because they would continue to get benefits of tax exemption on major raw materials like fly ash and capital goods purchased from outside the state, the commercial tax commissioner said.
As per norms, the dealers can procure cement up to 10 per cent of inputs used in manufacturing of fly ash bricks. If VAT on fly ash is imposed, the government would get around `20-crore revenue every year, Mishra added.
Currently, 1593 fly ash manufacturing units are registered under Orissa VAT Act and they are disclosing tax exempted sale of more than `300 crore per year.
Post News Network
6,890 total views, 4 views today
It’s not time yet to say the goose is being cooked for resourceful Vijay Mallya. The once-flamboyant liquor baron turned aviation mogul who nosedived his way into debts, fled India, and then huddled himself to a fugitive status in the … Continue reading
1,195 total views, 1,195 views today
New Delhi: Gender sensitivity is largely prevalent when it comes to family planning in Orissa as a recent survey reveals that the percentage of males undergoing sterilisation is much less as compared to females. According National Family Health Survey IV … Continue reading
14,064 total views, 10,858 views today
Kolkata: The South Eastern Railway (SER) served a very special passenger Tuesday night when its former employee Mahendra Singh Dhoni preferred to travel by train with the Jharkhand ODI team from Ranchi to Howrah to participate in the Vijay Hazare … Continue reading
14,743 total views, 10,874 views today
Pune: Both India and Australia, when they take the field here Thursday for the first of the four-Test series will have entirely different goals. India will want to continue the juggernaut of 19 unbeaten games that has seen them not … Continue reading
14,703 total views, 10,856 views today