Change midway through financial year will be cumbersome
Department begins training programmes It is offering an online registration facility
CHENNAI: Sections of trade and industry have called for deferring the introduction of the value added tax (VAT) till April 1, arguing that a change midway through the financial year from the Tamil Nadu General Sales Tax would be cumbersome.
The latest to voice concern about VAT introduction on January 1 is the Andhra Chamber of Commerce. In a letter to the Commercial Taxes Minister S.N.M. Ubayadullah, it said introduction of the new system should be deferred to April 1 as that would avoid two assessments in a single fiscal for the dealers.
It also appealed for publication of schedules with commodity details, besides the rules and regulations as early as possible.
The Madras Motor Parts Dealers' Association also favoured introduction of VAT from April 1. In a communication to the Chief Minister recently, its secretary A.N. Sureshk Kumar said if "imposed on January 1, the assessees will have to face problems in having to maintain two sets of stock accounts."
Apart from being laborious and cumbersome for the trade and industry, it would also be difficult and time consuming for the sales tax authorities as they have to verify the two sets.
But as things stand now, the State Government is likely to seek passage of the VAT Bill, put on the tnsalestax.gov.in website of the Commercial Taxes department, in the ensuing session of the Legislative Assembly. The department had started training programmes on VAT and urged TNGST dealers to register under the proposed VAT Act. It is offering an online registration facility.
The department is likely to establish a call centre for "delivery of effective service to the mercantile public." According to its website, the centre was expected to commence operations next month. Other trade and industry bodies such as the Southern India Chamber of Commerce and Industry seem confident about the State sticking to the Budget announcement about moving over to VAT early next year.
SICCI is organising a workshop on VAT here on Saturday, which is scheduled to be addressed by Commercial Taxes Secretary M. Devaraj, Commercial Taxes Commissioner S. Malathi and Andhra Pradesh Sales Tax department Additional Commissioner T. Ugendhar Reddy. For details, contact SICCI secretary 25342229, --- 25358578.