In order to give a boost to implementation of the Haryana Solar Policy and also to encourage entrepreneurs to set up ventures for manufacturing solar devices and equipment in the state, the Haryana Government today exempted solar devices and equipment or parts used in installation of solar power projects, from the levy of Value Added Tax (VAT) in the state.
A decision to this effect was taken by the Haryana Cabinet, which met under the chairmanship of the chief minister, Manohar Lal, here today.
At present VAT of five per cent plus surcharge is levied on solar devices and equipment in the state. Punjab, Uttar Pradesh, Delhi, Maharashtra and Madhya Pradesh have already exempted solar energy devices from VAT. Exemption of VAT will enable the trade and industry in Haryana to compete with other states where solar energy devices are exempted from VAT. This exemption will cost the state exchequer about Rs 2.30 crore.
Solar devices like solar lantern, solar home system, stand along street lighting system, solar water heating system, solar water pumping system, solar cooker box as well as dish type, solar charger or inverter, solar photovoltaic modules, solar collectors, solar dishes, its inverters or power conditioning units, energy meters and alternators purchased for the installation of solar power generation plants both rooftop and ground mounted and spare parts like solar photovoltaic modules,solar collection and solar dishes would be exempted from levy of VAT.
Source: http://economictimes.indiatimes.com/industry/energy/power/haryana-government-exempts-solar-devices-from-value-added-tax-levy/articleshow/58242313.cms
