People in Srinagar are not as aware about VAT as they are in Jammu, Kanwal K Kaul draws a comparison
I am a local Industrial Entrepreneur-cum-Industrial Consultant based at Jammu. I have traversed Industrial Road Map of J&K State during more than two decades and felt that it’s hot and cold. Of late, I studied the State VAT Act and got closely associated with it. After the introduction of VAT regime in the State Government, this is my first visit to valley though I come frequently being Industrial Consultant of M/s FIL Industries Limited. After having interactions with business fraternity, I found that there is more awakening on VAT Chapter in Jammu compared to Srinagar. Reasons being that during the implementation of VAT regime, most of the offices were in Winter Capital and Commercial Tax Officers had numerous elaborated interactions with the Public and Trade Community.
I have observed the spirit has not been same here. During course of purchase of a medicine from a medical shop, I made purchase in a minute while it took me fifteen minutes to explain VAT regime. I am sorry to say that the media too here has not conducted any type of survey about the knowledge of VAT regime, which would have been eye opener to the authorities and would have propagated the salient features of VAT more vigorously.
VAT simplified
It is difficult to explain VAT in few lines even then I am making a humble try. VAT, Value Added Tax, means that the tax is charged at every stage wherever and due to whatsoever means there is addition in the value of a product/commodity. In nutshell the idea of Value Added Tax is to tax the value addition made as goods traverse their path to end consumer. The end cost of the product includes a considerable amount of cost that is and can be attributed to the profit margins of various strata of consumers in the distribution network till the product reaches to end Consumer. VAT is a multiple point turnover tax imposed at all stages of production of the sales generated by Commercial Identities. To arrive at value addition, the purchase value of an entity is reduced from Sale Value. As per VAT Act, it is important to maintain VAT chain till the product reaches to end consumer.
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