The Guwahati Tea Auction Centre (GTAC) today claimed the Assam government had allowed concessional rate of taxation for private sale of tea within its aegis and the rules were applicable since the inception of the facility.
"The idea behind this entire exercise is to attract sale of more tea through a transparent system which was otherwise sold directly by the producer," GTAC Secretary J Kakati said in a statement here.
The arrangement was also encouraged by the Assam government to account for sales of tea from the state, otherwise a large quantity of tea was routinely shipped out by some producers as 'stock transfer' without paying any tax to the state exchequer, he said.
"It is true the GTAC allows sale of tea through private treaty, but the Tea Board has clearly stated that the directives issued by it does not affect any existing rules of an auction organiser relating to the sale of tea by private treaties undertaken by licensed brokers attached to the GTAC," Kakati said.
During 2013, the GTAC had achieved the milestone of selling 163 million kgs of tea for the first time in 44 years since its inception in 1970, he added.
