8% Sales Tax on REP licences

The Central Sales Tax authorities have directed all Delhi rice exporters to pay 8 % tax with retrospective effect on the special import licences and REP licences, which have sold over the last four years.

They pointed out, though it may be under political pressure from the exporters lobby, the Delhi would need to be very sure and careful before allowing these exporters to escape payment of tax arrears as it could be challenged by the tax department.

However, experts say the chief minister may well have no locus standi in the matter as sales tax is a Central Government issue.

Interestingly, accepting the sales tax department’s directive, a couple of leading rice exporters have already paid a part of their arrears and sought an extension for depositing the rest as reported by Delhi market sources.

Market Update
(Foodgrains)