Officers clear traders? doubts on VAT
WITH APRIL 1 ? the D-day for the implementation of value-added tax (VAT) in Madhya Pradesh nearing, the Department of Commercial Tax (CT) is into organising awareness camps to educate traders and industrialists in the State. Two such seminars, one in Bhopal and another at Mandideep, today received an over-whelming response in terms of feedback.india Updated: Mar 27, 2006 15:38 IST
WITH APRIL 1 — the D-day for the implementation of value-added tax (VAT) in Madhya Pradesh nearing, the Department of Commercial Tax (CT) is into organising awareness camps to educate traders and industrialists in the State. Two such seminars, one in Bhopal and another at Mandideep, today received an over-whelming response in terms of feedback.
The first seminar began at Hotel Arera Palace in the City today with some from large gathering expressing doubts and appearing confused.
When CT Additional Commissioner SK Jain said that the VAT Act contained no provision of imprisonment for defaulter traders, it brought relief to the trading community. Making audio-visual presentation, the department officials dealt with various sections of the Act, clearing doubts of traders. Some important issues like appealing, issuing bills against sales made, input tax rebate and exemptions were discussed.
Jain said VAT was no longer a new tax system in the country. It would be easier for MP as several states had already implemented it “Our officials are always available to guide traders and associations. The most important aspect is that traders have to understand how their stocks on April 1 would be taxed,” the Additional Commissioner mentioned.CT Assistant Commissioner AK Shukla explained how to avail of benefits against deferment, input tax rebate, inventory rebate and three-tier appealing system.
Mentioning that Bhopal Chamber of Commerce & Industry would send a representation to the Government on VAT, its president Santosh Agarwal said special care should be taken to see that traders are not harassed due to multiple taxes at the time of paying VAT. Govindpura Industries Association’s representative Yogesh Goyal pointed out that the department should publish all industrial items under 4% slab and rest be kept under 12.5%, instead of vice-versa.
Bhopal Chemists Association president Lalit Jain alleged that the present act would be impractical for pharma traders, if not suitably amended. “Unlike Maharashtra, VAT wouldn’t be charged on MRP in MP,” he said. Automobile Merchants’ Association’s Ajay Sogani also found the act confusing for the sector as it dealt with mixed products.
In a similar seminar meant exclusively for industrialists at Mandideep, CT Deputy Commissioner, PM Janoria made it clear that there would be no surcharge in VAT regime. “There wouldn’t be any harassment or pressure on industries,” he asserted. Stating input rebate to be major concern, Association of Industries, Mandideep president, DK Jain urged that industrial exemptions be maintained in a particular category.
Association’s Sanjay Khandelwal and SP Chowdhury hailed the decision on exemptions from payment of CT. CT Assistant Commissioner VK Shrivastava, SP Richaria, OP Pandey and industrialist Shalabh Sharma also spoke.
First Published: Mar 27, 2006 15:38 IST