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VAT In Kerala

Thiruvananthapuram: Amidst concerns being expressed by various traders? organisations, Value Added Tax (VAT) system has come into force in Kerala setting new parameters for taxing various items.

The exact impact of the new tax system would be felt only in the coming days as the first day of VAT on Apr 1 went without any business transactions with traders downing their shutters to protest against the new system.

According to experts, prices of medicines and readymade garments are expected to come down under the new regime. For medicines and readymade garments, the existing eight percent taxes would come down to four percent.

Traders in the state, who resumed their operations today after the three-day trade bandh, have threatened to launch a non-co-operation movement against the state government.

Kerala Vyapari Vyavasayi Ekopana Samiti (KVVES) sources said small traders with an annual turnover of Rs 5 lakh would not apply for registration as required under the new law.

Traders with an annual turnover of Rs 10 lakh to Rs 50 lakh would also not pay the 0.5 percent presumptive tax as stipulated by the VAT act, the sources said.

Both the Chief Minister Oommen Chandy and Finance Minister Vakkom Purushothaman had asserted that the VAT regime was here to stay and that the government was ready to talk with traders representatives to solve any practical difficulty while implementing the new system.

Kerala Value Added Tax Act, 2003

Kerala Value Added Tax Rules, 2005

Forms

Notification

Circular

Kerala Finance Act

A White Paper on State- Level Value Added Tax