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Almost all the dealers who exercised their option of availing of a new Tax Identification Number (TIN) number from the Commercial Taxes department had either chosen Telangana or the residuary state of Andhra Pradesh as their area of business operation.
There are about 285,000 registered dealers in the undivided state of AP of which, 85,000 assessees have so far exercised their option. Among them, only 160-odd people wanted to have TIN of both the states as they wished to continue their business in both the geographies, said Hiralal Samaria, commissioner, Commercial Taxes department on Thursday.
The assesses have been given time till May 7 to give their option as the existing TIN number will cease to exist from the appointed date of June 2, the day when the new states come into existence. The Union home ministry had already allotted new two-digit prefix 36 to Telangana and 37 to the residuary state of Andhra Pradesh in place of the existing number 28, he said.
The state commercial taxes department and the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) organised an interactive meeting with the assessees on Thursday to clarify and understand issues that could crop up during the transition period and also on the steps to be taken by both before the appointed date.
The department has shortened the first quarter of the financial year 2014-15 by almost one month from April 1-June 1 for filing the returns by the dealers as the taxes collected before the appointed date will be apportioned between the two states while the taxes collected in the new states will directly go into their respective accounts. Due to this change, the second quarter is made bigger by adding 29 days of June to the September quarter, according to the officials.
Meanwhile, a joint committee comprising commercial tax departments of both the states will be formed to address the issues and problems arising during the transition period, they said.
