KPA urges centre to amend Rule 7B of Income Tax Act

The Karnataka Planters Association (KPA) on Thursday urged the Centre for an amendment in Rule 7B of Income Tax Rules.

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According to KPA Chairman Baba P S Bedi, “In Rule 7B of Income Tax Rules, they consider ‘Coffee Curing’ as value-addition. If you cure coffee, you can’t drink it. However, you can drink it, only once it is roasted and powdered. How can they treat it as value-addition?”

KPA will submit a memorandum routed through The United Planters’ Association of Southern India (UPASI) to the central government to amend Rule 7B R/w Section 2 (1A) of Income Tax Act so as to give effect to the changes in the ruling to cover ‘Coffee Curing’ is within the meaning of ‘Coffee Grown’.

The Government of India is keen to introduce the Goods and Services Tax (GST) from April 1, 2017. Bedi said, “If coffee is made taxable under GST, input tax paid by the agriculturist on inputs used or consumed by the agriculturist in growing this product should be allowed to be set off.”

Appointment of chairman

A full-term chairman of Coffee Board has not been appointed yet.

“We have requested the Ministry of Commerce and Industry to appoint a full-time chairman to the board. The former chairman Jawaid Akthar’s tenure came to an end on May 11, 2015,” a statement from KPA said.

However, Leena Nair, a 1982 batch IAS officer from Tamil Nadu cadre, was given the additional charge of Chairman, Coffee Board.

Currently, the 1997 batch IAS officer of Uttar Pradesh cadre, M K Shanmuga Sundaram, has been accorded with the additional charge of the post of Chairman in the Coffee Board, Bengaluru, under the Department of Commerce.

source: http://www.deccanherald.com / Deccan Herald / Home> Business / DHNS – Bengaluru, October 14th, 2016

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