Guj FM addresses on VAT implementation

State Finance Minister Saurabh Dalal presided a session on pre and post VAT situation with business fraternity at an auditorium on Thursday.

Rajkot Chamber of Commerce & Industries (RCCI), Greater Rajkot Chamber of Commerce & Industries (GRCCI) and Rajkot Engineering Association (REA) jointly organised the seminar, followed by an open-house.

Haresh Vora, RCCI president said, "Our objective to conduct the seminar was primely to educate business fraternity of the city prior to implementation of VAT from April 1, 2006 and let them directly interact with the state government representatives in case they have doubts about the prevailing facts of the law."

Majority of members were in favor of making representation to the state finance minister, requesting the government to curb octroi, he added.

Emphasis was laid on clarifications of the procedures and policies likely to be imposed on the business sector and what pro-active role the state government can play to make Gujarat as one of the ideal and VAT friendly state.

"We have studied the post-VAT scenario in majority of the states and these observations show that tedious paper-work lies ahead alongwith unexpected intervention on the privacy of business fraternity if VAT is implemented the way it is in other states," claimed R B Pipaliya, president of Salestax Bar Association.

We request state government authorities to have a flexible approach in implementing VAT across the state and let the state welcome it as business friendly rules and not a mandate, added Pipaliya.

Highlighting the needs and essentiality of VAT in Gujarat, Saurabh Dalal said, "Uniformity in the taxation policies in the nation has limited the changing or deviation powers lying with the state government for passing on the tax benefits to particular trade, product or industry within the state."

"In that case, the state government is liable to explain the empowering committee to justify the deviations or prescribing particular tax benefits. We have to also implement uniform taxation policy within the state. Implementing VAT has now become a must across the nation."

Delay in implementation of VAT in Gujarat would by and large affect the domestic business of Gujarat or else business fraternity from other states would not prefer to do business with Gujarat, he added.

Again when our Sales Tax revenue is likely to touch Rs 10,000 crores by the end of this fiscal year, registering 25 per cent growth, we cannot afford to fall, claimed Dalal.

Responding to the request for curbing Octroi with implementation of VAT, Dalal said, "Revenue of Rs 2,000 crore is being generated from octroi collections. Unless and until any parallel source of income is not developed, there are no chances that state government would think on curbing octroi."