India is the becoming the hot destination for all the automotive industries of the whole world. Also, India is one of the largest automotive producers with an annual production of 23.37 million vehicles in FY 2014-15. The collection of VAT and sales tax is a subject matter of State. Now, the Rajasthan Government is all set to reform the ways of trade in the state and the changed ways are beginning to show results as well. There has been a reduction on VAT over the purchase of heavy trucks which turned into several benefits for the state. This VAT reduction has resulted in making Rajasthan the leading seller of heavy machines in the whole North India.
The Government is getting a boost in its income because of this step as buyers from the neighboring states are coming to Rajasthan to purchase trucks and heavy vehicles. It is very rare that the state is earning so well in this sector as the reports say that out of the total Rs.700 crores of revenues earned in the first quarter of this financial year, the major part was earned from the sale of trucks. “The reduction in VAT by 2% in the budget has resulted in a major boost in the sales. Now, the sales tax of Rajasthan is one of the lowest in the North region” a government official said.
The sources report that this segment is one of the lowest but with a little planning and hard work; the state can earn huge revenues and encourage buyers from other states to pool in Rajasthan for a large number of heavy vehicle purchases.
