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Value added tax sure to come from April, 2003
PTI - Kolkata

Value Added Tax (VAT) is sure to make its entry in India from April 2003 with most states going for common VAT laws, the commissioner of commercial taxes of West Bengal, Mr C M Bachhawat said recently.

“It (VAT) is sure to come into effect from first April next year. Twenty three states have prepared their draft on VAT, while Madhya Pradesh assembly has passed it,” Mr Bachhawat told the members of Merchants’ Chamber of Commerce here.

The draft on VAT of almost all states, he said, called for bringing in uniform rates and uniform floor rates for different commodities so that the distortion of taxes could be avoided. West Bengal too had almost finalised its draft and it would come soon after incorporating certain suggestions from industry, he added. The commissioner said that West Bengal was taking a number of steps, including computerisation to reduce evasion of taxes. “We hope to get fully computerised within next few days and I will appeal to all trade and business people to pay their taxes properly so that evasion is reduced as much as possible.”

To a query, Mr Bachhawat said that a general circular would soon be in place asking ITOs not to charge tax from registered dealers on declared commodities if already paid at any one point. He said that they would soon start setting up camps near banks and their offices to facilitate those willing to enrol in professional tax. “We will set up extension counters near our office and banks which will help those willing to come for enrolment.”