Bengal VAT paper on Jan 17

West Bengal's value added tax (VAT) regulation will be ready in two to three weeks, according to the state commissioner of commercial taxes (CCT), C M Bachhwat.

Speaking at a workshop on VAT organised by Suvidha Consultants, he said all 29 states will have separate framework for VAT.

Experts feel would pose problems for VAT, which is likely to be implemented from April 1, 2005.

The CCT said the West Bengal VAT framework is at a final stage and a white paper on VAT could be published as early as January 17.

"After the white paper, some suggestions may be accommodated," he said.

According to Bachhawat, the white paper has extensively dealt with the possible implications of VAT and included suggestions in the VAT regulation.

VAT consultant and Suvidha director B P Agarwal said different versions of VAT in different states would create major problems.

"India will have 29 states different versions of VAT. This will create unnecessary complications due to lack of uniformity in the laws since each state VAT would have its own features. To achieve integration of the Indian economy uniformity is required," he said. According to him, the VAT regime would eliminate the need for inter-state stock transfers.

"Big FMCG companies use the inter-state transfer mechanism but in the VAT regime it will be unviable," he said. According to him, the unavailability of input tax credit will make such transfers economically meaningless.