Builders seek steps to simplify VAT

Staff Reporter

KOCHI: A seminar organised by the Builders Association of India (BAI), Kochi, here on Saturday urged the authorities to take steps to simplify the value-added tax (VAT) system being implemented in the State.

The speakers at the seminar on ``VAT and Service Tax on Works Contracts,'' said the Government notification on VAT as announced in the State lacked clarity and transparency. While the present structure of implementing the tax gave room for manipulations and chances for tax evasions, it also gave chance for the authorities to intimidate even scrupulous traders.

It was pointed out that regarding the Service Tax, there was no provision to compute the tax directly. The seminar was inaugurated by R. Krishna Iyer, senior chartered accountant. P. Purushothaman, Joint General Manager (Indirect Taxes) of Larsen & Toubro Limited also spoke at the seminar.

BAI State secretary Antony Kunnel and Kochin centre chairman Praphulla Kumar also participated in the session. The BAI would hand over a representation to the Commissioner of Commercial Taxes pointing out the discrepancies in the Government orders regarding the service tax and VAT. The association would also request the authorities to clarify the existing orders.