New VAT rules in Telangana
Telangana government collects five per cent if the annual income is up to Rs 50 lakh
By : DC Correspondent
Update: 2015-07-04 01:07 GMT
Hyderabad: The government is preparing a new tourism policy for Telangana and is likely to change VAT slabs for the hotel industry. Currently the Telangana government collects five per cent if the annual income is up to Rs 50 lakh. Those with annual income of Rs 50 lakh to Rs 1 crore and above pay 14 per cent.
However, the government is contemplating to reduce VAT for incomes above Rs 1 crore and below as in Tamil Nadu, where there is no tax if the annual income is below Rs 50 lakh.
Telangana hotel Association President S. Venkat Reddy said, “The industry is demanding 2 per cent VAT for turnovers between Rs 1– Rs 5 crore and tax exemption for up to Rs 1 crore. We have met the CM. The government is coming up with a new tourism policy and is likely to change VAT slabs. We are asking for tax exemption for up to Rs 1 crore turnover and for turnover from Rs 1 crore to Rs 5 crore 2 per cent VAT as in Tamil Nadu.”
At present the government does not impose VAT for up to Rs 10 lakh, while from Rs 10 lakh to Rs 50 lakh it is 5 per cent and for above Rs 50 lakh it is 14 per cent on the annual income.