Issues on VAT irritating industries disused threadbare: PD Sharma

Ludhiana, June 22, 2014: On the request of P.D Sharma, President, Apex Chamber of Commerce & Industry (Punjab), Amrit Kaur Gill, Deputy Excise & Taxation Commissioner led by her team of AETC and ETOs held a meeting with the members of the Chamber.

Various issues on VAT irritating the industries were disused threadbare. Stating this here today, Sharma said they apprised the officer that industry had problem regarding new provision of providing the detail of stock under section 13 (1). Industries wanted the department to make it applicable only on those assesses whose stock is more than Rs.5 crore. However the details of the stock will be only on broad basis. “The request was accepted in principle”, he said.

Regarding another problem raised by the members, it was pointed out that when industrialists send the material through Branch Transfer in other states then Rate Charged is 5% whereas CST Rate is only 2%. “So this becomes a very miserable situation that Industry is being charged at a very high rate on stock transfer in comparison to interstate sales”, the industrialists said, adding, “ The ground reality of this issue was fully realised by the department and assured the industry to make necessary amendments.”

Some issues related to VAT refund were discussed in detail as under: U/S Sec 40 interest @ half percent per month on rfund should be given if it is not paid within 60 days of date of application; Provisional Refund of 75% should be given without levying any condition that assessment of previous year should be completed because the balance 25% refund is still with department; and All the objections raised during scrutiny of vat application should be properly communicated through e-mails at one go and not on piece meal basis also replies by assesses should be accepted by e-mails. “The departments fully realised the problem of the industry & assure the industry that suggestion will be implemented”, said Sharma.

Regarding Advance Tax deposit through Internet Banking, it was suggested by members to adopt the system of custom duty. “The deputy commissioner agreed to look into the system of Custom Duty”, revealed Sharma.

On the issue of one type of item and selling other type of items, the industry suggested to follow the Central Excise pattern of coding to overcome this problem. “This was accepted by the department”, said Sharma.

There are cases where VAT licenses of some dealers are cancelled by the department. The dealers in general are not aware of such cancellation. Industry suggested that if there are transactions before the date of cancellation of vat licenses these transactions should be considered valid. “This was readily accepted. It was also suggested by the industry that the information of cancellation of vat licenses should be immediately made public.”, said Sharma.

It was also pointed out that cycle manufactures in particular facing procedural difficulties of getting refund of export to Nepal. Renowned cycle manufactures have their huge amount of vat refunds pending with the department. Industry suggested that this VAT refund of exports to Nepal is just small as compare to their total refund. In such a situation it is not logical to with hold the entire refund. “The seriousness of this issue was fully realised by the department and positive assurance was given to sort out this issue immediately”, said Sharma.

Further, Sharma said they pointed out that industry wants the department to fix time to meet the public in the office. “It was agreed to implement when the new building of the department will be operational”, he added.

It was also accepted by the department that assesses when requires to call on the authorities it should be done with specific date & time, said Sharma.