IIA to assist UP government implement VAT

The Indian Industry Association (IIA), an apex body of Micro Small and Medium Enterprises (MSME) in Uttar Pradesh, is all set to help the state government implement Value Added Tax (VAT) in the state.

This was disclosed in a seminar organised by the chamber titled "Preparation for implementation of VAT in UP".

IIA also constituted a committee, under the chairmanship of IIA Former President Sanjay Kaul, to study the VAT system prevailing in other states and to gather experiences and feedback of the industry from the same in 15 days.

The chamber proposes to workout a recommendation, on this study, to be submitted to the UP government by August 15.

Recently, the Uttar Pradesh government made its stand clear on the implementation of VAT in the state, after which the government machinery swung into action to do the groundwork for the same.

According to IIA, since VAT is likely to be implemented in the middle of this financial year therefore the complications involved will also be slightly more in comparison to a situation if it was implemented in the next financial year.

"We should therefore try to clarify certain important issues immediately regarding refunds, openings stocks, treatment of outstanding credit, assessment procedures, compounding of tax, verification practices and set-offs," said Anil Gupta, senior vice-president, IIA.

Thirty industrialists and experts from Punjab, Haryana, Uttarakhand, Himachal Pradesh, Delhi, Rajasthan and Madhya Pradesh, attended the seminar. The participants observed that the industry was comfortable with the VAT system in their respective states.

Speaking on the occasion, Tarun Khetrapal, former president of IIA said keeping in view the apprehensions of small businessmen, IIA should recommend a threshold limit of at least Rs 10,00000 for the applicability of VAT.