After the announcement of Volkswagen to put the proposed Rs.2,000 crore investment plan in Maharashtra on hold over the VAT refund issue the government has came forward for a talk with the company.
The policy of refunding the tax deducted on purchase of raw material was withdrawn by the government as per them the automobile companies were claiming refunds twice – once on behalf of manufacturing unit, and the other by the marketing units of the same companies. Chief Minister of State, Chavan said that government can’t refund tax two times on a single commodity therefore the policy get changed.
The government was negotiating with other companies like Bajaj Auto, Mahindra and Mahindra, General Motors and Kirloskar that had objections to VAT refund.
Source: Hindustan Times
