Date:09/12/2004 URL: http://www.thehindubusinessline.com/2004/12/09/stories/2004120900941700.htm

Back `Govt-industry interaction vital for a foolproof VAT regime'

Our Bureau

`VAT would be beneficial to both the trading community and the Government.'

Thiruvananthapuram , Dec. 8

THE West Bengal Finance Minister and Chairperson of the Empowered Committee on Value Added Tax (VAT), Dr Asim Dasgupta, has stressed on the need for initiating a free and fair dialogue between the Government and the trading/industrial community on VAT.

Delivering the keynote address at an interactive session on VAT organised here by the Centre for Taxation Studies (CTS) and the Commercial Taxes Department, Kerala, Dr Dasgupta said that this dialogue should aim at arriving at a foolproof VAT system that is beneficial to both sides.

Dr Dasgupta also stated that in a country like India, the VAT system would have to necessarily go by what he described as the `revenue point of view' and universal applicability even while ensuring flexibility at a more `federal level' given the diversity of interests represented by different States.

While briefly presenting the landmarks in the roadmap for introduction of VAT in the country, Dr Dasgupta elucidated various aspects relating to its present status and mode of implementation.

Emphasising the need to move with the times, he pointed out that the introduction of VAT would be beneficial to both the trading/industrial community and the Government.

On the one hand, it will help assessees do away with cumbersome procedures and promote the concept of self-assessment. On the other, it will reduce complexities arising out of lack of uniformity in the statutes and rates across the country. This will in turn help enhance revenues, as has been the case with Haryana.

Earlier, the Kerala Finance Minister, Mr Vakkom Purushothaman, inaugurated the interactive session. In his address, he emphasised the need for making the sale tax system more transparent and simple. Introduction of VAT will be the first step in this direction since it will reduce procedural complexities and bring in more uniformity.

Mr Somasundaram, Commissioner, Commercial Taxes, Kerala, and Director, CTS, clarified doubts rained by the participants at the session. Mr Marapandiyan, Secretary, Taxes, delivered the welcome address while Mr Anilkumar, Registrar, CTS, proposed a vote of thanks.