A delegation of Apex Chamber of Commerce and Industry Punjab met Punjab excise and taxation commissioner (ETC) and discussed issues about Value Added Tax (VAT), among others, here on Tuesday.
Chamber president PD Sharma, told the commissioner that when VAT rates on iron and steel were reduced, the notification was defective.
“In case of old stocks lying with the dealer with old VAT rates, the input credit on such a stock will be given at lower rates as per the notification. This is irrational. ETC has accepted the chamber’s view that the input credit will be available as per new rates” said Sharma.
He pointed out that there were many cases where transaction of a dealer with another dealer was considered invalid because their VAT license had been cancelled.
“The chamber explained to the commissioner that if the transaction took place before cancellation of VAT license, it should be considered legal. Refunds of many dealers have been withheld due to such a situation,” Sharma claimed, adding that the ETC assured them of VAT refunds being expedited.
“VAT process should be on the pattern of central excise, which is very liberal. ETC has asked the chamber to give a proposal in writing,” the chamber president said. He urged the department to give interest for delayed period in case VAT refund by the department was delayed beyond stipulated time.