The Hindu Business Line : Bengal VAT directorate sets up 12-member amendment panel

THE Commercial Taxes Directorate of the West Bengal Government has set up a 12-member Amendment Committee (comprising mostly of departmental officers) to examine suggestions from various chambers of commerce and other trade bodies for further simplifying VAT procedures, including return forms.

An amended VAT Act and consolidated VAT Rules are expected soon.

The refund process, for both zero-rated export-related items and other eligible transactions was also being further simplified , with a generous dose of transparency.

Bengal is also gearing up to introduce the VAT audit system soon. As part of an on-going restructuring process, the State CT Directorate will now have two broad separate wings for VAT collection and VAT audit.

Speaking at an interactive session on the "Emerging VAT scenario in West Bengal", organised by the Bengal National Chamber of Commerce and Industry here on Wednesday, Mr C.M. Bachhawat, Commissioner, Commercial Taxes, Government of West Bengal, said Bengal was the only one among the VAT implementing States to allow input tax credit claim promptly on opening stock, if returns were submitted within the stipulated timeframe.

He said a new and innovative system (of displaying registration numbers on notice boards at the directorate premises) will soon be adopted to speed up dispatch of VAT registration certificates, mainly for re-sellers/works contracts, who will be issued these separately.

Pointing out that there was a good growth in revenues post-VAT, Mr Bachhawat said that this was despite the suo motu tax rationalisation process that has been set in motion.

The ST rate for cement in Bengal, for instance, was well above 25 per cent, which has now come down to 12.5 per cent under VAT.

Responding to queries by the Chamber President, Ms Nayantara Palchoudhuri, on the problems faced by trade with regard to periodicity of procurement and filing of declaration in C Form, Mr Bachhawat said it has now been decided by the Directorate that within 15 days of declaration by the dealer, C-Form will be issued for the purpose of inter-State sales.

"Our objective is to increase VAT compliance without causing any disturbance for the trade." Stating that careful verification methods would adopted, he said "unless proved otherwise, all dealers would be treated as honest."

He gave an assurance that any further problems with regard to procurement of C-Forms will be sorted out through further simplification of procedures, especially now that verification of declaration forms can be made easily with the help of the tax information exchange system. He also clarified that special measures were now being evolved to make improvements in the area of filing of returns.

Mr Bachhawat said the proposed VAT audit would now be done with regard to returns for the first two quarters. He said the department intended to publish a revised VAT booklet soon, indicating further simplification of the procedures.

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