Noida traders not impressed with promises to remove road permit hassles | india | Hindustan Times
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Noida traders not impressed with promises to remove road permit hassles

In the run-up to the elections, UP chief minister Akhilesh Yadav had promised traders that they would no longer be hassled with sales tax form 38, a road permit used for inter-state transit of goods.

india Updated: May 11, 2012 22:56 IST
Kapil Datta

In the run-up to the elections, UP chief minister Akhilesh Yadav had promised traders that they would no longer be hassled with sales tax form 38, a road permit used for inter-state transit of goods.

Going by history, however, industrialists and traders have their doubts.

"In the past, former UP chief minister Mulayam Singh Yadav had similarly promised that sales tax would go. As he came to power, he could not implement it as sales tax officers advised against it. They said it can not be abolished as they didn't have an alternative to compensate for the revenue loss," said Ravi Bansal, president, Greater Noida Udyog Vyapar Mandal.

"He chose to fool traders by putting together a trade tax in the name of abolishing the sales tax. Later, BSP chief Mayawati replaced the trade tax with a commercial tax. Names may change but we never got rid of the tax," said Bansal.

Though form 38 is not a revenue issue, it is big official hassle for traders. The road permit should have a stamp and signature of the shipper, consignee and the sales tax authority of Uttar Pradesh. If the sales officer finds the goods are undervalued then a penalty of up to 40% on the assessed value is levied.

They say a lot of time is lost at borders in checking the papers and disputes often arise about the value of the consignment.

On similar lines, the Noida Entrepreneur Association (NEA) has demanded the abolition of entry tax for the state.

"Earlier, octroi, a local tax collected on various articles brought into a district for consumption, was abolished but an entry tax was introduced. If one tax is waived, another levied," said Vipin Malhan, president, NEA.