Tax-avoidance Will Be Avoided

New Delhi, March 27: | Updated: Mar 28 2003, 05:30am hrs
The Indian Foundation of Transport Research and Training (IFTRT) has said the implementation of value added tax (VAT) would break the unholy alliance of transporters and traders for tax avoidance. In a recent study conducted in Delhi, it found that the extent of annual tax evasion to the tune of Rs 4,000 crore, as 60 per cent of the trade/transport turnover is carried out with duplicate/bogus papers. VAT will minimise tax avoidance and also create a common market, said IFTRT in a press release. Both lack of information and in-built tendency towards tax avoidance are responsible for the opposition of VAT, it added.

Around 90 per cent of the general merchandise booking/retail parcel booking are undertaken by road transporters, IFTRT said, adding this provides greater convenience for booking and delivery of goods at major trading centres.