VAT on poultry feed: Dealers threaten to shift base

“The dealers of poultry feed and its supplements are also dealing in poultry medicines and vaccines and are paying a sizeable tax at the rate of four per cent to the administration. In case,four per cent VAT on poultry feed and its supplements is not withdrawn,dealers will shift to neighbouring states of Punjab,Haryana and Himachal Pradesh. This would result in loss of revenue to the administration,already being paid by the dealers on poultry medicine and vaccines,” the memorandum reads.

“We may also add here that our customers are poultry farmers who purchase feed and supplements from us for use in their farms and these are not meant for any resale. It is prayed that poultry feed and its supplements be exempted from VAT as per the corresponding entries of other states as to ensure uniformity in the VAT throughout the country,” the memorandum adds.

While talking to Newsline,Yash Paul,a member of the association,said,“We have not done any business since December 24,ever since the notification in this regard was issued. In case,the administration does not roll back its decision,we shall be left with no alternative but to shift our industry out of Chandigarh,as our competitors in Barwala and Mohali would sell the same feed and supplements at cheaper prices.”