Delegation of Apex Chamber of Commerce & Industry (Punjab) meets ETC

Ludhiana, May 27, 2014: A delegation of Apex Chamber of Commerce & Industry (Punjab) met Excise & Taxation Commissioner, Punjab at Chandigarh on Monday. Some crucial issues irritating the industry were discussed and many of them got resolved with positive assurance for the others.

Giving this information here today, the Chamber’s president PD Sharma said when the vat rates on Iron & Steel were reduced the notification was defective. In case of old stocks lying with the dealer with the old vat rates the input credit on    such a stock will be given at lower rates as per notification. This is irrational. ETC has accepted the chamber’s view that the input credit will be available at new rates.

He added there are many cases where transaction of a dealer with another dealer is considered invalid because the vat license of the dealer has been cancelled. Chamber explained to ETC that if the transaction takes place before the cancellation of the vat license the transaction should be considered legal. Refunds of many dealers have been withheld due to such a situation.

“ETC assures the Chamber’s delegation that VAT refunds will be expedited. He agreed that vat refunds of Ludhiana-1, division are very high”, he said.

Sharma said, Chamber explained to ETC that vat process should be on the pattern of Central Excise which is very liberal. ETC asked the Chamber to give proposal in writing.

Adding, he said in case the VAT refund is delayed beyond the stipulated time the department should give interest for the delayed period as provided in the VAT Act. ETC agreed in principle.

There are many irrationalities in the transaction pertaining to stocks transfer, he said, adding ETC asked the Chamber to give them in writing.

Rajnish Ahuja, Y.P. Bajaj and Ajay Chaudhry legal expert accompanied the delegation