KARNATAKA VAT HAS WORKED AS A MODEL VAT

To, THE HON'BLE CHIEF MINISTER, GOV'T OF KARNATAKA, VIDHAN SABHA, BANGALORE SUB; PRE - BUDGET MEMORANDUM RESPECTED SIR, Wish you a very HAPPY NEW YEAR...May new year bring more and more prosperity,better health and better happiness to our people & further more & more revenue from the members of Karnataka Hosiery and Garments Association. We would like to get to your kind notice certain regulations under KVAT Act 2003 which are causing lot of difficulties to all the dealers... SIR.KARNATAKA VAT HAS WORKED AS A MODEL VAT AND WILL KEEP WORKING CONTINUOUSLY SO TILL GST COMES..AS KARNATAKA ENHANCED VAT RATES ON GARMENT FROM 4 TO 5 % ..OTHER STATES FOLLOWED AND NOW KARNATAKA HAS 5.5%..WHAT WE SUBMIT IS THAT IF KARNATAKA NOW CONSIDERS OUR SUBMISSION AND BRING IT TO 4%, IT WILL HELP THE BASIC TEXTILE INDUSTRY TO SURVIVE AND WE MAY WITNESS REQUIRED GROWTH IN ALL THE AREAS OF CONCERN..THE TEXTILE INDUSTRY IS THE SECOND LARGEST EMPLOYER AFTER THE AGRICULTURE PROVIDING LIVELIHOOD TO NEARLY 3 CRORES PEOPLE ALL OVER THE COUNTRY AND ABOVE 40% OF THEM ARE WOMEN ..THE COMMON MAN'S CLOTHING NEED HAS BEEN IMPACTED BY HIGH INFLATIONARY TRENDS IN LAST 3-4 YEARS ..IT'S PERTINENT TO KNOW THAT "CLOTH" NEED OF THE COMMON MAN IS UNDER MORE INFLATION THAN "BREAD ".. Suggested Amendments seeking your kindness... 1.VAT RATES INCREASED BY 1.5 PERCENT NEEDS TO BE REVERSED AS TRADE & INDUSTRY WERE ASSURED THAT IT IS FOR THE TIME BEING ONLY..( WAS INCREASED DUE TO FLOODS IN NORTH KARNATAKA )..GARMENT BEING A BASIC NECESSITY ITEM ( BREAD,HOUSE AND CLOTH ) NEEDS TO BE MAINTAINED AT 4% ONLY BY OUR GOVERNMENT FOR THE WELFARE OF COMMON PEOPLE AND HOPE AND TRUST THAT YOU WILL BE KIND ENOUGH TO OBLIGE US SIR.. 2..Currently VAT Audit is on a turnover over10000000/- which could be increased to 20000000/- to help the trade and industry. 3.GST IS DUE BUT NO ROAD MAP OR GUIDE LINES YET SO WE WILL BE HIGHLY OBLIGED IF WE HAVE THE PROPER INFORMATION IN ADVANCE . We request your goodself to kindly take note of the above suggestions in the coming budget for necessary amendments.We assure you of our best services always and prey for the welfare of our STATE... AWAITING YOUR FRUITFUL REPLY Thanking You, Yours Faithfully Sajjan Raj Mehta CHAIRMAN.TAXATION COMMITTEE.KHAGA MEMBER..STATE TAXES COMMITTEE, FKCCI EX.PRESIDENT..KARNATAKA HOSIERY & GARMENT ASSOCIATION 9845501150