VAT on yarn revised

Ludhiana, April 1

Advertisement

The Punjab Government today issued a notification regarding the change of VAT rate on yarn and stone bajri, including sand. Advocate Mohit aggarwal said earlier the rate of tax on cotton yarn was 6.05 per cent which now had been reduced to 3.63 per cent.

"This will prove very helpful for the hosiery trade and with this, the liablity of the refund will also decrease," he said. Rate of tax on polyester yarn, polyester chips, staple fibre and its waste acrylic fibre will be 6.05 per cent.

The government has also change the rate of tax on bajri stone and sand. The earlier was 6.05 per cent while now it will be lumsum tax. "Lump sum tax may increase the cost of the new constructions," said Advocate Vivek Sharma. The government has also announced tax exemption on all types of feed, supplements, grass hay and shaw for aquatic fish feed and cattle feed.—TNS