Purchase Tax payable to the Government by the sugar factories and by the Khandasari units for 2012-2013

Government have issued orders directing all the sugar factories and Khandasari Units in the State to pass on the entire Purchase Tax amount of Rs.60/- per Metric Tonne and Rs.22/- per Metric Tonne respectively, to the cane suppliers for 2011-2012 season.

The Commissioner of Sugar and Cane Commissioner, A.P., Hyderabad in his letter 2nd read above has requested the Government for continuation of these orders for passing on the entire Purchase Tax of Rs.60/- per MT by the sugar factories and Rs.22/- per MT by the Khandasari Sugar Units to the cane suppliers during 2012-2013 season also, ‘as an incentive’ duly incorporating a clause that the respective sugar factories and Khandasari sugar mills in the State shall pay the Purchase Tax incentive from the date of commencement of crushing operations for the cane crushed by the sugar factory for 2012-2013 season, on the ground that the FRP declared by Government of India for 2012-2013 season is not remunerative, to the cane growers and to avoid audit objections by the AGAP, Hyd.

After careful examination of the above proposal, Government hereby decided to pass on the entire Purchase Tax payable to the Government @ Rs.60/- per Metric Tonne payable by sugar factories and Rs.22/- per Metric Tonne by the Khandasari Units, to the Cane suppliers, as incentive, instead of payable to the Government, for 2012-13 season.    The concerned Sugar Factories / Khandasari units shall pay the Purchase Tax incentive from the date of commencement of crushing operations for the cane crushed by the respective sugar factory/Khandasari unit for 2012-2013 season, in the interest of sugarcane growers, duly following the procedure as laid down in the Annexure, enclosed to this order.

The Commissioner of Sugar and Cane Commissioner, Hyderabad shall take necessary action in the matter.

This order issues with the concurrence of Finance (Exp.I&C) Department vide their U.O.No.30296 /421 /Exp.I&C/2012, Dt:01-12-2012.

ANNEXURE

[TO  G.O.Ms.No.    , INDUSTRICES & COMMERCE (SUG) DEPT, Dt.:  -01-2013]

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 1.       The Purchase Tax Incentive Cane Price of Rs.60/- per M.T. by the Sugar Factories and Rs.22/- per M.T. by the Khandasari Sugar Mills payable to the Cane Suppliers shall be adjusted against the Purchase Tax for the cane purchased by them and payable to the Government, for which the following procedure shall be adopted.

2.       As per the Sugarcane Pricing Policy in respect of crushing season 2011-12, the occupier of sugar factories should pay to the cane suppliers the purchase tax incentive price @ Rs.60/- per M.T. and obtain the signature of the cane suppliers for the value of the cane supplied.  The Sugar Factories paying the incentive of Rs.60/- per M.T. to the cane suppliers through the Banks should submit a certificate of payments issued by the concerned Banks.

3.       Immediately after the payment is made, and at the end of each crushing season the sugar factories shall prefer a bill for adjustment of the incentive price paid at Rs.60/- to the cane suppliers to the Commissioner of Sugar and Cane Commissioner, Andhra Pradesh, Hyderabad or his/her nominee to whom the powers are delegated by him/her.  Along with the bill, the list of cane supplies to whom the incentive prices paid and the amount paid to them, duly certified and counter signed by the managements of the sugar factories shall be enclosed.

4.       After receipt of the Bills as mentioned above from the sugar factories, the Commissioner of Sugar shall send a proposal to the Government to release funds / Budget Release order, and BRO will be issued by Finance Department from the budget provision, if necessary additional funds over and above budget provision towards reimbursement of Purchase Tax.

5.       After receipt of BRO / Administrative Sanction, the Commissioner of Sugar & Cane Commissioner of Andhra Pradesh, Hyderabad shall prefer an adjustment bill with the Treasury duly indicating the Debit Head of Account “2852 – 08 – MH -201 SUGAR – SH (08) ASSISTANCE TO COOPERATIVE SUGAR FACTORIES TOWARDS REIMBURSEMENT OF PURCHASE TAX INCENTIVES – 310/312 OTHER GRANTS IN AID” and Credit Head of Account ie., “0045 – OTHER TAXES AND DUTIES OF COMMODITIES AND SERVICES – 114 – RECEIPTS UNDER SUGARCANE (REGULATION OF SUPPLY AND PURCHASE) ACT, 1961 (01) – TAX COLLECTION’ PURCHASE TAX ON SUGARCANE’ for adjustment of the amounts towards Purchase Tax.

6.       The Commissioner of Sugar and Cane Commissioner shall obtain supplementary grant during the respective financial year for the amount actually adjusted over and above the budget provision.

7.       The Incentive Cane Price of Rs.60/- to the cane suppliers shall be paid by the sugar factories within 14 days from the date of purchase/supply of cane failing which interest shall be charged on purchase tax incentive due amount, as per the Act and Rules in force and the interest portion shall be passed on to the respective cane suppliers.

8.       The same procedure as prescribed above should be followed in respect of Khandasari Sugar Mills which are required to pass on Rs.22/- per M.T. by way of Purchase Tax to the suppliers.

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