Run Simple with Accelerated VAT –...

Being the base and prime sector, VAT regime is expected to create a complete makeover for the industry, the impact of which will be felt heavily downstream. Specifically, current indirect tax incidence on Metals & Mining companies is close to 10-11% Further the tax incidence on products like steel and aluminum is in the range of 18-20% which is expected to remain same or increase marginally under the VAT regime. It is expected to increase by more than 20% post-VAT implementation. The impact on increased taxes is expected to be absorbed by players in the downstream through reduction of tax rates.