VATTABLE U.P. - Better Late than Never

The trend of revenue collection in VAT implementing States is also encouraging. During 2005-06, the tax revenue of the VAT implementing States showed an increase of around 13.8% over tax revenue of 2004-05, which is higher than the Compound Annual Growth Rate (CAGR) of sales tax revenues of these States for last 5 years (upto 2004-05). During April-June, 2006, the tax revenue of VAT implementing States has shown an increase of about 27.1% over the corresponding period of last year, which is quite remarkable and indicates that the VAT system has started stabilising and yielding the desired results.
Except for few operational problems, the industry and trade in all VAT states is comfortable now.

While IIA has remained involved with the issue right from the inception stage, a significant initiative this year was organizing a 1 day conference on “Preparation for implementation of VAT in UP”. This further facilitated our stance by allaying some misgivings and presenting practicable solutions to bottle-necks. Moreover, another achievement has also come our way recently. Our members will be pleased to know that IIA' s demands addressed in provisions of (Revised ) proposed VAT Act have been accepted by the government and shall be incorporated in the final VAT Act. IIA's proposal(as accepted) can be read in the following pages. 

My appeal to the Hon. Chief Minister and the Govt of UP is to implement the proposed simplifications and modifications of VAT provisions promptly and right from the beginning so as to avoid misinterpretations of the same. It is also essential to unconditionally provide for various facilities, benefits, exemptions and Input Tax Credit as announced by the CM so that the concerned officers are not able apply discretion for penalizing industry and trade for their vested interests.
My appeal to all the traders and industrialists is not to unduly protest against VAT but rather to concentrate on modifying its provisions so as to prevent hardships which we may come across once it is implemented.

The Trade Tax deptt has issued 8 subject wise information booklets, covering all important aspects of VAT. In this issue of the news letter, the same information has been presented in a concise form and for the further convenience of our members and all those who chance to visit our web site, we have put up all the information on IIA web site also at http://iiaonline.in/doc_files/VAT_FAQ_1.pdf. 

A VAT cell has already been established at IIA Central office with readily available expert advice. If you have any queries, you are welcome to contact VAT Helpline at 0522-2720090 or post your questions via e-mail at: siisc@iiaonline.in / iia@iiaonline.in