New VAT deprives defence personnel’s facility of canteen

Dhanbad : Defence personnel’s and ex-servicemen of Jharkhand are not able to avail the facility of canteen service since first April owing to the confusion on VAT.
About 600 ex-service men of the coal belt who are authorized to purchase commodities from the canteen of NCC unit which is situated in the premises of Indian School of Mines are following up with the canteen authorities every day and getting no concrete date on continuation of the facility.
Sources say that official notification of the new VAT of 14% has not come yet due to which the canteens across the state are shut.
Previously VAT did not apply on commodities sold from defence canteens but now after the application of tax, the difference in the cost price from open market would not be significant.
“If the VAT of 14% applies on the items, new cost of the commodities would not make much of a price difference from the open market.
There is no point coming from far place and wait in such a long queue to purchase groceries.
I would better shop from the local market” said K P Srivastava, a retired person from Indian Navy.
According to the sources about 1.5 lakh families in the state avail the facility of Canteen Stores Department (CSD) and are compelled to buy groceries from the open market.
Ex-servicemen who used to flock in the canteen for liquor are finding themselves helpless and are compelled to buy it from the open market.
Colonel A K Singh, in-charge of NCC unit of Dhanbad said “We are awaiting directives from the CSD depot, Ranchi. Unless we are clear about the VAT we won't be able to sell the commodities.

Suppose the VAT is applied from 1st April we will have to recover the amount from each beneficiary which would not be possible".

Web Title : NEW VAT DEPRIVES DEFENCE PERSONNEL’S FACILITY OF CANTEEN

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