July 1 likely to be city’s date with VAT
While the UT Administration’s Value Added Tax (VAT) case is still pending with the Union Law Ministry for clearance, it is likely that the Administration would introduce the new tax regime after the first quarter of tax collection. Sources said the date of July 1 makes sense as the second quarter of tax collection starts on this day.
Sources explained that if VAT was introduced before or after July 1, tax collection would be a problem for the Administration, as it would have to collect taxes as per the present sales tax system and the new tax regime as well. Sources said if VAT was introduced from July 1, there would be no complication as taxes are collected after every quarter.
It may be mentioned that the city’s trade bodies have also been demanding that the new tax regime should have been introduced from April 1 or now from July 1 so that they don’t face problems regarding tax and there is no confusion in filing the tax returns.
Sources also revealed that the UT’s case for VAT was referred to the Law Ministry as there were some objections raised by the Centre regarding the repealing of the Punjab General Sales Tax, which is presently being followed in the UT.
More: cities.expressindia.com