Moderately priced computer-based billing machines launched
The Information systems company HCL recently launched the BeePOS range of products aimed at providing customised computer based billing solutions for small and medium business.
With this the HCL aims to capture the major share of billing products across more than 12 million retail outlets in the country.
The affordable range include the BeePOS Innova for the retailers in the unorganised sector. The Innova with pre-loaded software, hardware, a cash management system and a printer is priced at Rs 19,000.
The products, including software and hardware, are priced between Rs.19,000 and Rs.50,000. The kiosk-type products aimed at relatively larger businesses are priced between Rs.100,000 and Rs.500,000.
“ The number of small outlets is really huge. And this launch of new products for this market means it is extremely affordable and it comes with a full solution software, comes with hardware, cash management and a printer. The cost is below Rs 20,000. So for the first time we are creating a product which is meant for normal grocery shops, chemists and millions of small shop-owners,” said Ajai Chowdhry, Chief Executive Officer of HCL Infosystems Limited.
The Innova which can run on a 12 volt battery has the VAT system incorporated, to relieve the users of complicated calculations.
Initially, the company, which has an annual capacity of 100,000 PCs, will develop 40,000 to 50,000 HCL BeePOs. Chowdhry said with the advent of VAT, bill making is required and HCL is trying to meet this requirement for small retail outlets.
India’s retail market, estimated at 202 billion dollars, is expected to grow at 30 per cent over the next five years.
The company hopes to replicate its success story of launching Personal Computers priced at less than Rs 15000, which it launched in January last year.
Source: newkerala.com
Fear shuts Manipur tax wing - Militants demand money
The taxation wing of the Manipur government has ceased to function after all the employees barring the head of the department took leave en masse following alleged threats from several militant groups.
The departmental office located at the directorate complex near the headquarters of a Manipur Rifles battalion here has been locked since yesterday as all the employees took earned leave till August 30.
This is for the first time in Manipur that an entire office complex was closed down following threats from militants.
Reports said several militant groups have demanded huge sums of money from the employees of the department and some of the groups set August 31 as the deadline for the payment. The groups allegedly warned the employees with dire consequences if their demands were not met.
When this correspondent visited the complex, the main gate of the office was found locked and no employee could be seen. A notice pasted on the wall near the main gate said the employees were on earned leave.
“We have no alternative to taking mass leave in view of the threat and strong pressure mounted by several militant groups. The total sum demanded by the groups is about Rs 70 lakh and we have no money to pay,” a senior official of the department said.
Commissioner of the department, R.K. Dinesh, had earlier notified that all the registered and unregistered dealers and shops should get themselves registered under the new value added tax (VAT) system on or before September 1. The notification warned that an amount not less than Rs 5,000 and not exceeding Rs 10,000 would be collected as fine for each defaulting month from each dealer if they failed to get themselves registered. Manipur introduced the new tax regime with effect from June 1.
But as the office has been closed without any formal notification, many who turned up for registration of their shops and also to clear the tax under the new system had to go back.
“I came to pay sales tax under the new VAT regime. We had no information of the closure of the office. Our time has been wasted. What is more important is that since the office will remain closed till August 30, we have only two days to pay the tax and registration fee. Will they impose fine on those of us who fail to clear the tax during the two days?” L. Sanajaoba, a drug stockist, asked.
The department has about 100 employees and some of them said they could not sit in the office and work due to the militant threat. “There is a fear psychosis prevailing among the officials. Earlier, three officials were kidnapped by militants. On the one hand we are facing threats from militant groups while on the other, the government is pressuring us to go for an enhanced tax collection drive. We are sandwiched between the two,” another official said.
Source: telegraphindia.com
TN urged to introduce VAT soon
The Tamil Nadu Chamber of Commerce and Industry has urged the State Government to introduce value added tax (VAT) ‘‘without any further delay’’ following in the BJP-ruled states’ footsteps.
Reports confirmed increased tax revenue of up to 30 percent in most of the 21 states, which switched over to VAT in April. This buoyancy in revenue had prompted the announcement that within two months, VAT would be implemented in all the five BJP-ruled states, said chamber president S Rethinavelu in a statement.
Pointing out that trade bodies in some states, which had opposed VAT, had now ‘‘fully grasped’’ its comparative beneficial aspect, Rethinavelu said, ‘‘It is pertinent to note that even leading trade and industrial associations have also been insisting on immediate implementation of VAT in the state. Now, there cannot be any reservation about VAT implementation from any quarters in Tamil Nadu.’’
He said non-implementation of VAT had ‘‘severely affected’’ trade in the state, and this had made it difficult to compete with VAT-implemented states, as the prices of their products were comparatively higher by about six percent.
Source: newindpress.com
VAT in BJP-ruled states soon: Gaur
INSPIRED BY growing revenue of states that opted for VAT, five BJP-ruled states were likely to fall in line in two months. Indicating this, Madhya Pradesh Chief Minister Babulal Gaur today said, “We have resolved about 90 per cent of the issues and if the rest gets sorted out, we could have VAT in the next two months”.
“We have had talks with Finance Minister. We want certain clarifications on the compensation as implementing the VAT in present form would entail a revenue loss of Rs 1400 crore. But we are hopeful of resolving all issues,” Gaur said on the sidelines of a FICCI interactive meet.
Gaur said the issue was what would be the states’ share in Central goods and service tax and also as to what extent would the Centre compensate for the revenue loss on account of VAT.
He said there was also the issue of phasing out of Central sales tax but emphasised that all the BJP-ruled states would act in tandem on the issue.
As per the agreed package, the Centre will compensate states for any revenue
Source: hindustantimes.com
8/26/2005
State falls short of Rs 250 crore in sales tax mop-up
Maharashtra’s sales tax collection in May-July ’05 has fallen short of its earlier projections as lower rates under the value added tax (VAT) regime reduced the flow into the state’s coffers.
Sources in the state’s revenue department said that the government’s target for the three months, based on a formula accepted by the Centre, was Rs 2,701 crore. But the government managed to collect only Rs 2,451 crore — a shortfall of about Rs 250 crore.
“This was expected since the average rate of tax in VAT regime has fallen to 12.5% from the earlier 17.5%. There is nothing shocking,” a revenue department official said.
According to a formula, all states have been asked to consider the three best years for revenue collection in the past five years. The arithmetical mean of these years will be considered as a mean year based on which the tax collection will be projected for the year ’05-’06.
Ministries’ help sought to monitor VAT impact on commodities
The empowered committee of state finance ministers today decided to seek the assistance of finance ministry and other central ministries to monitor changes in prices of commodities that are covered by value-added tax (VAT). It may also seek action against companies that have failed to pass on benefits of lower rates to consumers.
Empowered committee chairman Asim Dasgupta told reporters, here today, that action would be recommended after detailed discussion with the finance ministry and industry chambers. On uniform rate of tax for bullion, the panel would meet with chief ministers of Rajasthan and Gujarat in the next few weeks to persuade them to raise the levy from 0.25% to national level of 1%.
Dasgupta said the committee has received complaints that many companies have not made changes to MRP of products which now attract lower duties under sales tax. Consumers across the country have been complaining that prices of many commodities have risen post implementation of VAT regime even where there was no change in rates.
8/25/2005
VAT panel wants finance ministry to monitor prices
The empowered committee on VAT has requested the finance ministry and other other ministries concerned to monitor price level of VAT commodities even though general prices have come down after the new tax regime was implemented in 21 states.
The consumer price index has come down from 5 per cent in April to 3.7 per cent in May and further to 3.3 per cent in June, Empowered Committee Chairman Asim Dasgupta said after the VAT panel meeting on Wednesday.
But the committee is concerned in cases where prices have risen even after reduction in VAT rates compared to sales taxes. ‘‘Index is an average concept. Prices of some commodities have risen. We are particularly concerned about those commodities, where prices have gone up despite reduction in VAT rates,’’ Dasgupta said.
He said the panel has requested finance ministry officials and other ministries concerned to hold meetings to monitor prices of VAT commodities. On passing the benefits by manufacturers to the next stage, he said it is not happening countrywide.
To a query whether punitive action would be taken against those not factoring in VAT in maximum retail prices (MRP), Dasgupta said the panel would recommend such action only after discussions with the finance ministry. However, persuasive efforts do also bear fruits, he added.
Besides prices, another issue affecting quality of VAT is non-issuance of cash memos and invoices, he said, adding trade associations and chambers have assured the VAT panel that they would be cooperating with it on this matter. He said revenues of states have gone up after the implementation of VAT.
Maharashtra to seek Rs 250 cr VAT compensation
The Maharashtra government will seek compensation of Rs 250 crore from the Centre for less revenue generation due to VAT for the first quarter of this fiscal.
The state collected Rs 2,451 crore from VAT items during the first quarter, against a projection of Rs 2,701 crore, informed the Maharashtra sales tax commissioner B C Khatua.
He added that the state will submit its claims this weekend or the next week.
As per the compensation formula, states will be compensated fully this fiscal, if their revenue falls short of the projection, which is calculated on the basis of weighted average sales tax revenue during the best three of the last five years.
The average is added to the last fiscal’s revenue and the resultant would be the projection.
As per the forumula, Maharashtra has projected revenue of Rs 13,000 crore this fiscal against Rs 10,800 crore during 2004-05.
However, empowered committee chairman Asim Dasgupta said that the compensation claims received from states are much less than what was expected.
“Very few states have asked for compensation,” he said, but did not divulge the exact figure for compensation.
Wednesday’s meeting was an interaction with sales tax commissioners of the states and a more detailed meeting with the finance ministers of the respective states will take place on Thursday.
Dasgupta said, the states finance ministers would discuss issues arising out of VAT introduction, including uniform floor rates, revenue growth and impact of the new tax on prices.
Dasgupta, who is also West Bengal finance minister, said that the eastern state had taken certain steps to ensure that customers were not charged higher prices. “We will listen to the steps taken by the other states at the meeting,” he said.
The issue of persuading eight states to embrace the VAT regime is also on the agenda, he added.
While preparation of a harmonised system of nomenclature (HSN) list was discussed on Wednesday, sources said, it would take a couple of months before the list is out because of a large number of items.
Source: business-standard.com
FinMin told to monitor price of goods under Vat
The empowered committee of the state finance ministers has urged the Union finance ministry and other other Central ministries to monitor the price level of Vat commodities which should have come down after the implementation of the new tax regime.
Although the Consumer Price Index (CPI) slipped from 5% in April to 3.7% in May and further to 3.3% in June, the committee is concerned about rising prices of certain Vat commodities, said empowered committee convenor and West Bengal finance minister Asim Dasgupta. He was talking to media after a meeting of the committee here on Wednesday.
“Index is an average concept. Prices of some commodities have risen. We are particularly concerned about those commodities, where prices have gone up despite reduction in Vat rates,” he said.
The committee, he said, wanted finance ministry officials and other ministries concerned to hold regular meetings to monitor prices of Vat commodities.
On passing the benefits by manufacturers to the consumers, he said, “It is not happening countrywide.” To a query whether punitive action would be taken against those not factoring in Vat in the maximum retail price (MRP), Mr Dasgupta said the panel would recommend such action only after discussions with the finance ministry. “Persuasive efforts do also bear fruits”, he added.
Besides prices, another issue affecting Vat was non-issuance of cash memos and invoices, he said, adding trade associations and chambers have assured the Vat panel that they would be cooperating with it on this matter.
Mr Dasgupta also said revenues of states have gone up after the Vat implementation.
Source: financialexpress.com
8/24/2005
Tally to hold VAT camps before Sept deadline
Bangalore-based Tally Solutions will organise more than 200 events in September, a month before the proposed implementation of VAT in which chartered accountants (CAs) familiar with the Tally system will explain VAT to professionals engaged in business accounting.
Talking to Business Standard over phone from Bangalore, Anil Pant,vice-presidentin charge of global channel sales at Tally Solutions, said, “If VAT is implemented from October, accounting related work will shoot up further and Tally has made the required changes in the existing software".
Tally will bring more VAT ready software to the market as soon as states implement VAT, he promised. Tally has floated new schemes and programmes which would provide employment opportunities to the unemployed under the Tally Maharaja scheme.
The company will be inviting 1,000 youngsters and self-starters to become Tally accredited resellers. They will be trained and supported by the company.
The scheme would extend support to a person of any age, sex and educational qualification having a basic knowledge of computers to start their own business. Tally Solutions would provide training, stock and financial support to resellers.
Every entrepreneur could profit through this programme, company officials claimed.
Pant, citing an example, said M P Raja in Mumbai had started as a reseller for Tally and the facilities provided by it combined with his drive and motivation had secured for him net profit of Rs 80,000 per month.
Source: business-standard.com
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