New VAT implementation of 2.5% which was earlier 4.5% (excluding other charges) in Punjab from 01 Feb, 2014 had resulted to improve Mandi Gobindgarh local market by INR 400-500/MT within 2 days.
The Re-bar manufactures and other Finished Steel manufacturers had stopped purchasing of the material (Ingot/Billet) from past few days. Traders of Finished steel had also started to clear their stock and stopped purchasing of Ingot/Billet & Re-bar. As a result, no major fluctuation has been observed from past 10-15 days in Mandi Gobindgarh(Punjab); prices fluctuated by INR 200-300/MT.
After a long time, improvement in Mandi Gobindgarh market is triggering improvement in other markets like Raipur, Durgapur & Rourkela including nearby markets.
Prices increased in Mandi are also helping other markets to raise their offers. Prices have improved in the range of INR 300-500/MT in Raipur, by INR 100-200 in Durgapur and by INR 200-300 in Rourkela.
Price Calculation (for FOR/Delivered)
| Cost till 31 Jan’14 | Cost till 01 Feb’14 | |
| TMT Basic (12 mm) | 37,100 | 37,500 |
| Loading | 110 | 110 |
| ED | 4,586 | 4,635 |
| VAT | 2,069 | 1,162 |
| VAT+Surcharge | 4.95% | 2.75% |
| Total | 43,864 | 43,407 |
| Difference from 1 Feb’14 | 458 |
Note: VAT including surcharge of 10%
Punjab Govt. Notice for Taxes
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