Service tax a blow to granite industry in Andhra Pradesh

Ongole: The granite quarry owners in the State are surprised and shocked when they received notices from the government to give the production between April 2016 and June 2017. The authorities mentioned that they are going to impose a service tax on the seigniorage fees for the duration. The quarry managements are getting ready to file a primary objection in a few days.

Highlights:

  • 18 per cent later on quarry managements   The Centre proposed to impose 15 per cent of service tax between April 2016 and June 2017 and  
  • served to quarry owners to provide details of service tax paid by them between April 2016 and June 2017     Notices have been 
  • The government is getting about Rs 120-150 crore royalty from the granite companies every year

The granite industry is concentrated in Prakasam, Guntur, Chittoor and Visakhapatnam districts. The Prakasam district has about 400 granite companies with a holding of 1,200 mining quarries while the number of cutting and polishing industries reached 4,000 with more than 50,000 workers dependent on the industry.

The government is getting about Rs 120-150 crore in the name of seigniorage fees which is also called royalty from the granite companies every year. The MSME granite units, which enjoyed waiver of taxes up to the introduction of GST, are burdened with the tax but the large-scale units enjoyed a relief.

 

Source:THE HANS INDIA

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