Delhi UPS makers rejoice at sales tax cut

NEW DELHI: UPS vendors and manufacturers have welcomed the decision of the

Delhi sales tax authorities to lower sales tax on UPS from 12 per cent to four

per cent.

This would not only spur the sale of UPS, also significantly turn the tide

against the grey market that controls 80 per cent of the UPS segment, they said

viewing the fact that neighboring states like Uttar Pradesh levy sales tax as

low as two per cent and most other states levy sales tax in the range of four

per cent.

Haryana and Punjab continue to levy 12 per cent and eight per cent sales tax

respectively.

A happy Sunil Bhalla, director, Radiant Power Systems, said, "We were

pleasantly surprised by the decision which was long overdue. It will now provide

a level-playing field to us." The sentiment is echoed by Pawan Gupta,

Director, Datex Electronics, "The four per cent sales tax is a welcome

development since it will at least put Delhi UPS vendors at par with its

counterparts in the country."

Ashok Mazumdar, executive director of Association for UPS and Power

Conditioning System Manufacturers said that lowering of sales tax would help to

attract UPS manufacturers back to Delhi who had migrated to neighboring states

like Rajasthan because of lower tax structure.