We will shortly undertake restructuring of the sales tax directorates to accommodate VAT, Mr Bachhawat said while addressing a seminar organised by the Bharat Chamber of Commerce here Wednesday. He said that the restructuring programmes included thorough computerisation of the sales tax directorates.
According to him, there might be certain technical problems at the initial stage of implementing VAT. However, our departmental staff will be equipped enough to tackle them and problems, if any, will be resolved within a short period of time.
Earlier, the chairman of the trade reforms & state taxation standing committee, SN Kasera, said that a provision had been introduced so that input tax credit was not denied to the purchasing dealer even if the purchases made by him were from a dealer who had not deposited the tax collected by him. The dealer claiming the input tax credit should not be made liable for the default of the selling dealer, he said.
Mr Kasera also suggested that value added tax should be introduced initially at the stage of manufacturers and up-to two stages of trade. At this stage, introduction of VAT to retail dealers may create difficulties for them, he said.
Pointing out that the exempted units were not required to pay sales tax at the time of purchases and also not allowed to collect the taxes so far, Mr Kasera said that the status of exempted units should be maintained as before.
The units should be allowed to purchase and sell without payment of tax by making them a separate category on the lines of 100 per cent export oriented units, he said.