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Small industries’ plea to Governor

— Photo: T. Singaravelou

ON VAT ISSUE: Representatives of the Association of Small Industries with Lieutenant Governor Mukut Mithi at a meeting in Puducherry on Thursday.

PUDUCHERRY: The Association of Small Industries on Thursday sought the intervention of Lieutenant Governor Mukut Mithi to ensure implementation of certain provisions of the Puducherry Value Added Tax Act.

In a memorandum submitted to Mr. Mithi, representatives of the association said that though the VAT came into force six months ago, the government was yet to appoint key functionaries to implement the new system in Puducherry.

As per Section 77 of the Act, applications submitted by dealers to obtain clarifications and advance ruling should be processed by an Authority.

The Authority should consist of a chairman in the rank of Deputy Commissioner of Commercial Taxes and two other members not below the rank of the Commercial Tax Officer.

Also, Section 38 of the Act warranted payment of Rs. 1,000 by the dealers along with application.

The two provisions of the Act were yet to be implemented, the memorandum said.

More than hundred applications had been filed by businessmen, but the department was unable to dispose of them as there was no officer in the rank of Deputy Commissioner to act as chairman, the memorandum said.

“There appears to be a procedural problem in creating the post in the normal process,” it said, adding that the government could consider filling the post on ad hoc basis to sort out difficulties faced by the businessmen.

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