The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) will join hands with Shree Kshethra Dharmasthala Rural Development Project (SKDRDP) to start a training programme for workers and mentoring for young entrepreneurs.
The aim is to provide skill development avenues for school/college dropouts, especially from the commerce stream, said J.R. Bangera, president, FKCCI. He was speaking at a seminar on updates in Karnataka Value Added Tax (KVAT), e-initiatives and an insight into the proposed goods and services tax (GST) and legal metrology laws, arranged jointly by the Kanara Chamber of Commerce and Industry (KCCI) and FKCCI in the city on Saturday.
He said that FKCCI, along with SKDRDP, would also start a mentoring scheme for young entrepreneurs at the district level. It will be implemented in collaboration with Rural Development and Self Employment Training Institute (RUDSETI) – a joint initiative of the Syndicate Bank, Canara Bank and Shri Dharmasthala Manjunatheshwara Educational Trust – and experts from FKCCI. The mentoring is to support entrepreneurs from all sectors, in manufacturing, trade and service, particularly for the first one or two years.
Mr. Bangera said that the scheme would be implemented with the State Bank of Mysore and then other banks will join. The FKCCI is planning to ask the Chief Minister for a tripartite setup for the scheme, which will be on the lines of a public-private partnership, (PPP).
He said Mangalore University has sought FKCCI inputs for certain parts of the syllabus. It wanted additional training especially on sales and weights and measures, which will be followed up by FKCCI. Talking on "update on KVAT and an insight into GST", B.T. Manohar, Chairman, State Taxes Committee, said that, under KVAT (which will part of the GST), a person transporting any "notified goods" without valid documents, has to pay a penalty five times the amount of the tax to be paid. These goods include arecanut, copra and dessacated copra, and articles of jewellery and silver. "Even if the dealer is registered, the goods are being transferred without a document. As there is no billing, it is seen as evasion (of taxes) from trade and industry to government," he said.
Mr. Manohar said that there was very little information regarding GST for the public. Till we get some information officially, not much can be said on GST, he said.
The GST, a tax on goods and services, is levied at every point of the value chain from the point of production or import to the point of consumption.
The introduction of GST requires Constitutional amendments, Central and State legislation, besides rules and regulations and a suitable format. GST is expected to replace excise duty, Central service tax, VAT in states, besides cesses, surcharges and local levies, said a presentation made by a participant at the meet.