Punjab Pradesh Beopar Mandal to oppose single-stage VAT regime

To call big convention of traders of Punjab after festival season 2013
Amritsar/Ludhiana, October 24, 2013: The Punjab Pradesh Beopar Mandal has said the state government decision to have single-stage VAT regime claiming a major relief to traders will prove hardship and most complicated system.
In a joint statement here on Thursday, the Mandal’s state president Amrit Lal Jain, state general secretary Sunil Mehra and state secretary Mohinder Aggarwal added VAT was introduced in year 2005 after abolishing sales tax regime. This new system will neither be a sales tax nor VAT. Punjab will introduce the worst type of system which is nowhere in any state of the country. Single-stage VAT regime will be against the spirit of VAT Act 2005. This system will be a boom in corruption for the Excise & Taxation Department. If manufacturer or the distributors sell the goods on MRP rates will the purchaser will get a new type of certificate which department will introduce in each and every sale. Dealers having a turnover for more than Rs.1 crore yearly have to deposit VAT each month. Any dealer if he deposit Rs.10 lac VAT in a month, this new system on VAT on MRP he will have to deposit at least Rs.20 lac. Generally goods are sold on credit basis for a period of 1 to 3 months. The first seller will ultimately utilise his entire funds into VAT deposit and his manufacturing or distribution system will collapse due to lacks of funds. This new system will have serious effect in Income Tax as GP will increase and hence he will have to shell more money to Income Tax Department.
They said it looks the state government has single point agenda of VAT. It does not look to its own excise & taxation department which is known for its “corruption”. In the year 2014 goods and service tax (GST) will be introduced in the country replacing VAT, excise, service tax, advance tax, local taxes etc.
“Mandal is surprised why state government is frequently changing VAT Act like e-trip, advance tax, changes in VAT form no.15 etc”, they said, adding the Punjab Pradesh Beopar Mandal oppose this single-stage VAT regime which is illegal and unconstitutional as it does not have any provision in VAT Act 2005.
They said the PPBM requests state government not to rush in a haste to introduce single-stage VAT regime which will ruin the trade and industry and century old practices of trade which is quite unknown to the politicians and bureaucrats.
They announced that the PPBM will call a mahasamelan (big convention) of Beoparis (traders) of the state after festival season is over and will chalk out a programe to oppose this ill thought system and also take opinion of the advocates to challenge it in a court of law, if the government insists on introducing single-stage VAT regime. www.cityairnews.com

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