GUWAHATI, April 6 � The Tax Department of the State has directed the traders dealing in gamocha to state it in categorical terms that they are dealing only in the handloom products.
According to an official press release, the Tax Department has also asked the traders dealing in silk items like muga and eri fabrics to notify in an unambiguous term the sources of the yarn with which their fabrics are woven. The traders are to write clearly all these information on their bills/receipts, said the Tax Department.
It needs mention here that as per the Handlooms (Reservation of Articles For Production) Act, 1985, gamocha should be woven in handlooms only. Under this legislation, production of gamocha in power looms is a punishable offence.
To encourage the handloom sector, gamochas have been exempted from VAT too.
But there are allegations that some traders have been selling gamochas and sericulture items produced in other states as State�s gamochas and local muga and eri clothes.
The issue was discussed at the March 23 meeting of the Handloom and Textiles Department and the Tax Department has now come up with the above directive on the basis of the March 23 discussion.
The Department will conduct special inspections to ascertain proper compliance of the above directive and initiate measures as per the legal provisions wherever such steps are required, said the press release.
