The Hindu : Karnataka News : `State prepared to introduce VAT'

Online edition of India's National Newspaper
Wednesday, Jul 21, 2004

Karnataka

Karnataka

`State prepared to introduce VAT'

By Our Special Correspondent

BANGALORE, JULY 20. The Deputy Chief Minister, Siddaramaiah, said on Monday that the State was "fully prepared" to introduce Value Added Tax (VAT) on April 1, 2005.

While announcing the Budget proposals here, Mr. Siddaramaiah expressed the hope that the Centre would spell out its commitment to help the States during the initial stages of introduction of VAT.

In line with preparations for the introduction of VAT, the Commercial Taxes Department would be reorganised on a functional basis. An office for issue of registration and cancellation of registration under sales tax in Bangalore would be set up for the purpose. The Government proposed to create a facility for online filing of returns and payment of tax by dealers in Bangalore.

The tax remittance procedures would be simplified using the network of the State Bank of India and its associate banks. That would be operational by October 1. To check leakage of revenue, the Government proposed to computerise offices at check-posts and inter-link them with the assessment office of the department. Four intermediate check-posts at Manuganahalli (on Mysore-Hunsur Road), Tadas Cross (near Hubli), Hospet and Harihar would be converted into mobile ones, he said.

Mr. Siddaramaiah said the Government proposed to introduce a scheme of deemed acceptance of returns filed for assessment years up to 2002-03 under the Sales Tax and Entry Tax Acts. However, 10 per cent of the cases would be selected randomly for detailed scrutiny assessment.

He said the ban on online and Internet lotteries had come into effect on July 15.

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