VAT only after dialogue: Rajasthan FICCI

VAT needs to be implemented effectively and procedural aspects should be smoothened after a dialogue with trade and industry in Rajasthan, according to FICCI's Rajasthan State Council Chairman Maharaj Jai Singh.

Jai Singh was speaking at a seminar "Value Added Tax (VAT) - Rules & Procedures Simplified - Post Implementation", organised by FICCI's Rajasthan State Council and the Rajasthan government here recently.

He emphasised that, at this moment, it may be desirable to deliberate upon the key issues pertaining to VAT including to what extent there is uniformity and harmony in the rates, rules and regulations which is important for an ideal VAT system to work.

Are stock transfers in VAT regime more beneficial than inter-state sales? What is the impact of prices on commodities? What administrative hassles are being experienced? In case one feels the position is not satisfactory, what remedy should be suggested to the Empowered committee?

In his address, Dr KL Jain , secretary general of RCCI mentioned that VAT should be implemented in a manner that Trade and Industry should not suffer due to irrational VAT rates and Rajasthan must not suffer on account of varying tax rates in neighbouring states .The main goal of VAT is Uniform Tax structure across the country which is missing at present.

P S Mehra, Commissioner, Commercial Taxes, govt of Rajasthan emphasised that  the inconsistency of CST with VAT needs to be tackled. Mehra's concern was to collect taxes not to penalise the poor but help them to achieve a better economic standard.

These problems should be resolved quickly to increase revenue to the state.

Ashok Jain, secretary - finance, govt of Rajasthan insisted on the necessity to have a complete automation for networking and campaign programmes for smooth running of VAT.

S N Gupta, chairman, state VAT Committee & chairman, Public Grievances Cell, govt of Rajasthan, stressed upon the need for training programmes for both buyers and sellers as well as govt officials.