Soyabean purchase by traders will now attract no tax in the state after second amendment to the MP Valued Added Tax (VAT) Act 2011 cleared in the state assembly. The state government made five amendments to the Act, which exempted soya and maize from value added tax (VAT).
This will give relief to soya crushing industry as soya purchase attracts VAT in state mandis. Traders had a long pending demand as home-grown soya was transported to neighbouring states like Maharashtra and Rajasthan.
In another amendment, the state government has abrogated the mandatory provisions of VAT in recovering outstanding amount from sick units. Now, sick unit takeovers will leave no VAT liability on the new promoter. The state government has also made provisions of withdrawal of court cases, if a trader is facing trial on account of VAT evasion. According to new provisions, if a trader deposits double the evaded amount, government may withdraw case against him.
The amended Act has also given liberty to the state government to appoint any number of members in appellate board for a period of two years. In view of number of pending tax related cases, the government cleared this amendment.