A letter was handed over to Chamber of Commerce & Industries proposing IT Items VAT Rate Changes in the Budget.
Today CCI had a meeting with FM Mr. Drabu and was attended by Mr. Dikshit & Mr. Naveen, where in he showed concern for J&K and assured of business friendly Budget.
The letter carried the following recommendations:
1. Rate of Tax on UPS be revised from 13.5% to 5%, as it is 5% all over the Country.
2. Rate of Tax on Toners and Cartridges be revised to 5% from 13.5%. This higher rate of tax is prompting vendors to import from Punjab and other States without paying VAT etc, which is wrong practice as after applying VAT rate of items becomes more than the MRP of the product.
3. VAT on Software and related services be exempted as major chunk of Software is used either by departments and Government or is used for VAT Billing in Business & Industry.