The Hindu : New Delhi News : `Consumers being taken for a ride'

Online edition of India's National Newspaper
Wednesday, May 11, 2005

New Delhi

New Delhi

`Consumers being taken for a ride'

Staff Reporter

Majority of traders not issuing invoices The Delhi VAT Act 2004 is a progressive legislation that tries to simplify procedures and reduce arbitrariness, said the Finance Minister, A.K.Walia.

NEW DELHI: The Member Secretary of Empowered Committee for Value-Added Tax, Ramesh Chandra, on Tuesday said a majority of traders in Delhi were taking consumers for a ride by not issuing invoices. He warned traders that violation of law and evasion of tax would not be accepted.

Speaking at a workshop on "Delhi VAT Rules and Procedures Simplified", organised by the Confederation of Indian Industry's Delhi unit and the Delhi Government, Mr. Chandra called for fair practices so that the need for penal provision could be avoided. "Unscrupulous elements exceed scrupulous elements in Delhi. We have said we will not go to market to inspect unnecessarily, but that concession is being misused," he added.

Congratulating the Delhi Sales Tax department for announcing the provision of refund within 30 days, Mr. Chandra emphasised the need for uniformity in VAT laws across the country. The 28 State Finance ministers of Empowered Committee have done a commendable job in protecting the interest of States, he said, adding that the suggestion for giving teeth to the Empowered Committee for VAT was being seriously considered.

Admitting that traders in the Capital were not issuing invoices, the Delhi Finance Minister, A K Walia, said things would improve when the system settles down and traders become familiar with it. The Delhi VAT Act 2004 is a progressive legislation that tries to simplify procedures and reduce arbitrariness. Accepting there were some teething problems, he asked for the support of traders, industry, associations and citizens in making this a success.

The Delhi Sales Tax Commissioner, R K Verma, said traders should cooperate by using invoices and not force the authorities to conduct inspections. Traders in the Capital were earlier concerned over shifting of trade because of non-implementation of VAT by Uttar Pradesh and retaining of different VAT regime by Haryana. However, solutions to their problems were found after meeting with the Empowered Committee and traders were comfortable now.

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