The Hindu Business Line : Draft VAT rules to be on Web site in Bengal

DISCLOSING that as many as 15 States were now ready with their VAT Acts, Mr C.M. Bachhawat, Commissioner, Commercial Taxes, West Bengal, said here on Friday that the revised draft VAT Rules for the trade in Bengal would be on the Web site by Monday or Tueday next.

The commercial taxes department has also planned to release a series of advertisements in the next three weeks in print media across the State, delineating the various details of the VAT format, even as the countdown for April 1 launch begins.

Speaking at an interactive session on `Macro & micro implications of Budget 2005' organised by Suvidha Consultants Pvt Ltd, Mr Bachhawat said the Rules would be in keeping with the White Paper released by the Empowered Committee of State Finance Ministers on January 17, 2005. Any further procedural change-related amendments would be carried out only if any mistakes are detected, he pointed out.

Urging the trade to properly maintain the stock details for incorporation in the VAT return forms, he suggested that the tax amount should be indicated separately. On finished goods, he clarified that the basis of accounting (for both input and output) should be mandatorily explained through a chartered accountants certificate, especially for claiming input credits.

He informed that closing stocks would be eligible for tax credits in the subsequent year. He did not envisage any problems with regard to valuations, and clarified that tax credits would not be affected under any case. He said for trade-to-trade transactions, the invoice bills plus tax has to be shown.

Pointing out that the procedural aspects for VAT calculation for re-sellers has been included in the draft Rules, he said registration details and the TIN Number must be included along with the 11digit alphanumeric Code number. Assuring the trade that secrecy of business would be fully maintained, he said information on various practical aspects of VAT sales/purchases would be disseminated through periodic trade circulars. The model return forms, to be put on the website soon, have been simplified, and are easy to prepare, he added. He said VAT registration camps have already been held at various dealers' outlets.

Earlier, commenting on the two controversial direct tax proposals in Budget 2005-06, namely the cash withdrawal tax and fringe benefits tax, Mr R. Sharan, DG (Investigations), Income-tax Department, Kolkata, said FBT was a not a new concept in the Budget, as both Australia and New Zealand have already adopted it.

Describing Service Tax as a tax of the present, and not of the future, Mr B.P. Agarwal, senior tax consultant, said the Government by notifying the new Export of Services Rules, clearly intended to tighten the screws with regard to service tax payments by amending Rule 6. Key changes have been made to provisions pertaining to services provided abroad, he said.

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