 "Tax on earthmoving tools slashed in Haryana")
The Haryana government on Friday reduced the rate of tax on earthmoving equipment to five per cent under the Haryana Value Added Tax Act, 2003.
A decision to this effect has been taken in the Cabinet meeting which was held under the chairmanship of Chief Minister, Bhupinder Singh Hooda in Chandigarh.
As per the Act, the sale of earthmoving equipment including excavators, track excavators and backhoe loaders, when sold to non-government dealers or persons, are liable to tax at the rate of 12.5 per cent being unclassified goods.
However, these goods have been made taxable generally at the rate of five per cent in many other states. Therefore, to bring uniformity in the tax rate, the Cabinet granted approval for bringing earthmoving equipment to the lower tax slab of five per cent under the Act.
According to a senior official, this decision would increase the local sale of these equipment as direct purchase by the customers of other states would save them Central Sales Tax of two per cent, which is presently being paid by them on inter-state sales. This will not only boost the sales but will also translate into higher revenue for the state government.
A decision to this effect has been taken in the Cabinet meeting which was held under the chairmanship of Chief Minister, Bhupinder Singh Hooda in Chandigarh.
As per the Act, the sale of earthmoving equipment including excavators, track excavators and backhoe loaders, when sold to non-government dealers or persons, are liable to tax at the rate of 12.5 per cent being unclassified goods.
However, these goods have been made taxable generally at the rate of five per cent in many other states. Therefore, to bring uniformity in the tax rate, the Cabinet granted approval for bringing earthmoving equipment to the lower tax slab of five per cent under the Act.
According to a senior official, this decision would increase the local sale of these equipment as direct purchase by the customers of other states would save them Central Sales Tax of two per cent, which is presently being paid by them on inter-state sales. This will not only boost the sales but will also translate into higher revenue for the state government.