In a major relief to traders, the
Punjab Government has decided to remove the multiplicity in Value Added
Tax (VAT) on all commodities by imposing it right at the manufacturing
level. The move will not only simplify the taxation procedure, but also
eliminate the practice of doing business without proper accounting of
sales.
The decision to implement the single-stage taxation regime was taken by the state Cabinet yesterday. It decided to bring a Bill to this effect in the forthcoming session.
Once cleared by the Assembly, the government would ask all major manufacturers selling their goods across the state to charge entire VAT component from the distributor itself. The simplification of tax structure is the main thrust of the new trade policy, which would be announced on November 14.
Of the 2.25 lakh registered VAT dealers in Punjab, only 900 pay more than Rs 1 crore as VAT in a year. A large number of dealers do not pay any VAT, by not accounting sales in their books.
With the new taxation structure in force, Punjab will be amongst the few states to have brought in a single-stage taxation regime. Deputy Chief Minister Sukhbir Singh Badal said the step would go a long way in ensuring that all trade in Punjab was accounted for.
Simplifying things
* The new taxation regime will provide that VAT is imposed right at the manufacturing level
* The manufacturers will pay the entire VAT and then collect it from the remaining people in the supply chain (ie distributors, wholesalers and retailers etc.)
* Besides simplifying the taxation procedure, it will also eliminate the practice of doing business without proper sales accounting
Source: The Tribune
The decision to implement the single-stage taxation regime was taken by the state Cabinet yesterday. It decided to bring a Bill to this effect in the forthcoming session.
Once cleared by the Assembly, the government would ask all major manufacturers selling their goods across the state to charge entire VAT component from the distributor itself. The simplification of tax structure is the main thrust of the new trade policy, which would be announced on November 14.
Of the 2.25 lakh registered VAT dealers in Punjab, only 900 pay more than Rs 1 crore as VAT in a year. A large number of dealers do not pay any VAT, by not accounting sales in their books.
With the new taxation structure in force, Punjab will be amongst the few states to have brought in a single-stage taxation regime. Deputy Chief Minister Sukhbir Singh Badal said the step would go a long way in ensuring that all trade in Punjab was accounted for.
Simplifying things
* The new taxation regime will provide that VAT is imposed right at the manufacturing level
* The manufacturers will pay the entire VAT and then collect it from the remaining people in the supply chain (ie distributors, wholesalers and retailers etc.)
* Besides simplifying the taxation procedure, it will also eliminate the practice of doing business without proper sales accounting
Source: The Tribune
Posts
0 comments :
Post a Comment