From: jagdish chander firstname.lastname@example.org
Sent: Monday, 7 September, 2009 5:30:48 PM
Subject: Re: Establishment of the CSD Committee by IESM
I understand there is a problem in purchase of cars for servicemen (serving and ex-servicemen alike) in the UT of Chandigarh.
On enquiry form CSD sources I am told it that while on the one hand the dealers in Chandigarh cannot charge VAT on interstate transfer, on the other hand the States of Haryana and Punjab stand to lose 4% VAT on every transaction from sale ex Chandigarh dealer.
For your information since introduction of sale of cars up to 1300 cc to JCOs/Ors, the sale of cars has jumped three fold in Punjab alone. As there is no CSD depot at Chandigarh and in interstate transfer the seller/dealer at Chandigarh can only charge CST on cars sold ex Ambala / Jullundur, the non payment of VAT has been observed adversely on CSD by the state authorities.
Obviously, in a case like this the solution lies in resolution with the State Govt Authorities.
A meeting is likely to be held by Western Command with the State Sales tax authorities in the coming week. Let’s wait and see what comes out of it.
Till then it’s a ?.
For your info.
(Lt Gen Jagdish Chander, Former DG ASC, Former MD CSD (I) and Head IESM CSD Cell)