The Hindu Business Line : VAT Bill introduced in AP

THE Andhra Pradesh Value Added Tax Bill, which seeks to replace the AP General Sales Tax Act, 1957, was introduced in the Legislative Assembly on Thursday.

According to the Minister for Commercial Taxes, Mr K. Ramakrishna, who introduced the Bill, the revenue loss to the State Government on account of the introduction of value added tax (VAT) will be to the extent of Rs 750 crore per annum.

He, however, stated that the Union Government had assured to compensate the loss during the first three years of its introduction. The Centre had agreed to compensate 100 per cent of the loss in the first year, 75 per cent in second year and 50 per cent in the third year on the basis of a suitable mechanism or methodology agreed upon.

The VAT Bill provides for imposition of 4 per cent value added sales tax on 91 items and exemption of 47 from payment of tax. A one per cent tax will be imposed on the sale of bullion, bullion embedded jewellery and precious stones.

While 12.5 per cent on all goods other those specified in the Bill, five kinds are subjected to special rate of taxation. The goods subjected to special rates of taxation are liquor, petrol, aviation motor spirit, aviation turbine fuel and diesel.

As per the provisions of the Bill a penalty of Rs 5,000 will be imposed on any VAT dealer who fails to apply for registration; Rs 2,500 for failing to file a return; Rs 5,000 for failing to issue invoice or bill or cash memorandum; Rs 1,000 for failing to use a TIN (taxpayer identification number) or GRN (general registration number); and penalty of 10 per cent of the tax due for failing to pay the tax.

The legislation also provides for imposition of penalties for various other acts of omission and commission by traders.

The Bill empowers the State Government to establish check posts wherever it feels necessary to check evasion of tax. It also seeks to replace the AP Value Added Tax Ordinance promulgated by the Governor on January 31.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page