Industry & Economy
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Taxation
TN Chamber plumps for changes in VAT
Our Correspondent
Madurai
,
July 23
THE Tamil Nadu Chamber of Commerce and Industry (TNCCI), while hailing the implementation of the value-added tax (VAT) from April 1, 2005, has, however, insisted on incorporation of certain changes before implementing the same.
Mr S. Rethinavelu, Chamber President, who met the Chairman, Empowered Committee on VAT, Dr Asim Das Gupta, at New Delhi, recently, has sought total phase out of the Central Sales Tax from April 1, 2006.
All commodity-based taxes should be totally withdrawn. Also, only those with a turnover above Rs 10 lakh should be registered under VAT and those with an annual turnover up to Rs 50 lakh should be given the option to enjoy either exemption from VAT or be under VAT system enjoying the set-off benefits.
However, the State governments should be given some flexibility in dealing with goods of local importance by way of anexemption or reduction in rates of tax under the new system. The penal provisions under VAT should be simplified to infuse confidence among the trade and industry.
He has further sought for a model VAT Act and emphasised that all the States should follow the same.
In order to ensure a smooth transition from sales tax to VAT system without impediments, Mr Rethinavelu has suggested the formation of a high-level advisory committee comprising the trade representatives to sort out problems.
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