Kejriwal simplifies VAT procedure for Delhi traders
Updated: Feb 03, 2014 05:08:59pm
New Delhi, Feb 3 (KNN) With elections round the corner, Arvind Kejriwal has made a number of important announcements, including simplification of VAT payment procedure, giving relief to Delhi traders.
The Chief Minister of Delhi interacted with various traders and market organisations of the city here on Saturday.
"The government is working on a process to simplify the VAT procedure by putting effective and user-friendly systems in place. This will help traders pay their tax regularly and without any hassle, and will also help the government increase its revenue without causing any inconvenience to traders," Kejriwal said.
The Delhi government also announced scrapping of the Audit Report 1 (AR1) which was mandatory for traders with an annual turnover exceeding Rs 10 crore. The report was meant to detect inconsistencies in the returns and books. In many cases, however, the government would get more revenue through it.
Kejriwal also announced that the ceiling limit of composition scheme, for small-time traders to avail of a simplified VAT procedure, will be raised from Rs.50 lakh to Rs.1 crore. This means that traders with a turnover of up to Rs1 crore will now be eligible to get the benefit of a simplified procedure for calculating the VAT on goods sold by them.
The simplified procedure allows small traders to pay one per cent tax on their turnover. This benefit has now been extended to those traders whose turnover is up to Rs one crore.
The CM also assured traders that the government will consider by how much it can raise the ceiling to exempt small traders from VAT registration. Currently, traders with a turnover less than Rs 20 lakhs do not need to register with VAT authorities. The CM has assured traders that the government will consider raising this ceiling limit and will examine by how much.
In addition, the government intends to reduce human interface between VAT authorities and traders. In this context, the CM has assured traders that his government plans to discourage random visits/inspections by VAT inspectors to markets and trading organisations. (KNN/ES)
The Chief Minister of Delhi interacted with various traders and market organisations of the city here on Saturday.
"The government is working on a process to simplify the VAT procedure by putting effective and user-friendly systems in place. This will help traders pay their tax regularly and without any hassle, and will also help the government increase its revenue without causing any inconvenience to traders," Kejriwal said.
The Delhi government also announced scrapping of the Audit Report 1 (AR1) which was mandatory for traders with an annual turnover exceeding Rs 10 crore. The report was meant to detect inconsistencies in the returns and books. In many cases, however, the government would get more revenue through it.
Kejriwal also announced that the ceiling limit of composition scheme, for small-time traders to avail of a simplified VAT procedure, will be raised from Rs.50 lakh to Rs.1 crore. This means that traders with a turnover of up to Rs1 crore will now be eligible to get the benefit of a simplified procedure for calculating the VAT on goods sold by them.
The simplified procedure allows small traders to pay one per cent tax on their turnover. This benefit has now been extended to those traders whose turnover is up to Rs one crore.
The CM also assured traders that the government will consider by how much it can raise the ceiling to exempt small traders from VAT registration. Currently, traders with a turnover less than Rs 20 lakhs do not need to register with VAT authorities. The CM has assured traders that the government will consider raising this ceiling limit and will examine by how much.
In addition, the government intends to reduce human interface between VAT authorities and traders. In this context, the CM has assured traders that his government plans to discourage random visits/inspections by VAT inspectors to markets and trading organisations. (KNN/ES)
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