The Hindu Business Line : Info network for VAT verification by July

THE Tax Exchange Information Network, said to be the fulcrum for full compliance of VAT across the States, is expected to become fully functional for at least 14 or 15 States by the middle of this year. Verification of inter-State VAT transactions is expected to begin from July or so, and become completely functional by the end of the year.

Speaking on `VAT & its implications' at an interactive session organised by the Calcutta Chamber of Commerce here, Mr C.M. Bachhawat, Commissioner of Commercial Taxes, West Bengal, said verification of other dealers' registration number in bulk of the VAT-States would be facilitated by this info network, and will cover all the States in the next six months or so. If transactions are not reported by the trade and verified quickly, problems will arise.

In the context of West Bengal, he said the coordinative consultative committee of VAT at its meetings was considering many correctional aspects, particularly where the VAT registered dealers feel pure industrial inputs have been put on the highest slab of 12.5 per cent. He urged the chambers to bring to the knowledge of the committee any discrepancies noticed for corrective action.

Pointing out that suggestions from various quarters have piled up at the department's offices, Mr Bachhawat said the committee would look into these by the end of the month. Not favouring piece-meal amendments to schedules, as 100 per cent changes cannot be made starightaway, he said scrutiny of suggestions was being taken up.

Commenting on the take-off of the VAT regime in Bengal, Mr Bachhawat said, `Meet the traders' programmes are being organised in districts in the next 15 days, as the West Bengal VAT Act 2003 and Schedules have been distributed.

Monthly returns, he cautioned the trade, should not be delayed 30 days. He also clarified that any attempt at fraud or misuse would be dealt with firmly. Assuring the trade and industry of time-bound decisions on appeals, he said all such cases would be disposed of within a period one year.

According to Mr B.P.Agarwal, senior tax consultant, VAT is a verification-based tax and not assessment-based, and therefore the dealers are expected to maintain stock details (including invoices) for a period of eight years.

He also suggested that since Permanent Account Number details have to be given in the invoice itself, there is no need for declaration forms, as such. According to him, sales to unregistered dealers are very much permitted under section 19 of the VAT Act.

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