The Hindu : Andhra Pradesh News : VAT regime in State from today

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Friday, Apr 01, 2005

Andhra Pradesh

Andhra Pradesh

VAT regime in State from today

By Our Special Correspondent

HYDERABAD, MARCH 31. The VAT regime is here and from tomorrow traders and customers are bound to feel its impact. But, the Minister for Commercial Taxes, K. Ramakrishna, assures all that the new regime would only be beneficial to all.

Talking to The Hindu, Mr.Ramakrishna said here today that it would have no impact on the poor as no item consumed by them would come under its purview.

Moreover, all dealers catering to the needs of the poor would also be exempted.

The scheme of higher threshold and compounding for dealers having a turnover of Rs. 40 lakhs after paying a compounding tax of 1 per cent on turnover would take care of such dealers.

He assured the traders that refund of input tax credit was permissible under the new rules and hence they need not apprehend any problem here.

The Minister said the switching over of the State from regulatory to facilitator's role meant increased respect for traders.

Advance ruling on tax, filing returns through simple means like email or fax and Harmonious System of Nomenclature for classification of goods and taxes would lend greater clarity to transactions.

No apprehensions

Out of nearly four lakh assessees in the State, only 1.25 lakh traders were doing more than Rs. 40-lakh turnover and 1.5 lakh were doing between Rs.5 lakhs and 40 lakhs.

Those from the upper bracket would be eligible for input tax credit, he added.

To check the rates prevailing in the market too, a prior notice would be given to the traders to ensure no harassment, he said.

Mr. Ramakrishna said the existing AP General Sales Tax was too complicated because of the discretionary powers but the new system would eliminate the loopholes to a large extent.

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