INDIA : SAMSUNG ORDERED TO LOWER TAX RATE FOR CARTRIDGES

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INDIA : SAMSUNG ORDERED TO LOWER TAX RATE FOR CARTRIDGES

 user 2009-11-10 at 10:41:53 am Views: 41
  • #22894
    http://www.ciol.com/Channel-News/News-Reports/Samsung-printers-cartridges-get-stay-order-on-12.5-p.c-VAT/191009126485/0/
    INDIA : SAMSUNG ORDERED TO LOWER TAX
    RATE FOR CARTRIDGES

    The company’s
    printer division obtained the order for all its distributors across
    Tamil Nadu
    CHENNAI, INDIA: Earlier this month, the High Court of
    Madras issued an interim injunction to Samsung India Electronics and its
    distributors in Tamil Nadu against levying value-added tax (VAT) higher
    than four percent on printer toners and cartridges.In its plea seeking
    interim injunction, Samsung (Printer Division) had included its
    distributors—Carewel Systems (Vellore), Vijex & Company (Chennai),
    Sukkra Traders (Puducherry), Micro Automation Info India (Tirupur),
    Vijex Office Product (Coimbatore), Vinay Agencies (Erode), Uttam
    Marketing (Chennai) and Micro Machines (Salem) as petitioners.

    The
    judgment of Honorable Justice V Ramasubramanian restrains the
    appropriate authorities from recovering tax with respect to sale of
    printer toners/cartridges at a rate higher than four percent tax.The
    order is applicable to all the petitioners. All the partners The DQ Week
    contacted hailed Samsung’s support in this issue. R Krishnamoorthi, MD
    of Tiruppur-based Micro Automation Info India enthused, “Samsung stood
    by its words, and we are very thankful to the company for its committed
    support.”On a similar note, Rajesh Kumar, Proprietor of Erode-based
    Vinay Agencies said, “Samsung always supports its partners and will not
    let them down. We will be united and face the VAT issue together.”
    Saravanan, CEO, Carewel Systems, Vellore, expressing relief shared that
    they were happy and content to be part of Samsung family.

    The
    Tamil Nadu VAT Act—Schedule 1, Part B states that toners and cartridges
    are excluded from the four percent tax. Citing the act, the appropriate
    authorities claim that the product thus attracts 12.5 percent tax.
    However, all the partners across Tamil Nadu have been levying four
    percent tax on toners and cartridges. The department has been issuing
    notices to several partners across Tamil Nadu to pay 12.5 percent of VAT
    on all those ink cartridges and toners sold from 2007 till date.In this
    regard, Canon had obtained an interim injunction in Madras High Court
    in February 2008. Earlier, Manufacturers Association for IT (MAIT) had
    been updated by the state government of Tamil Nadu in 2007, that the ink
    cartridges and toners attract a VAT of 12.5 percent. But, this was
    allegedly not communicated to the channel partners. It was viewed as a
    serious case of violation by Confed-ITA.