Pics: Meryick D’Silva
Daijiworld Media Network – Mangalore (NM)
Mangalore, May 28: "Rigid trade policies are not intended to harm the trade activity. Nearly 80 percent of the traders are honest tax payers, while only less than 20 percent evade tax. Some of the rigid tax policies are designed keeping in mind the 20 percent (who do not pay tax)," said Ajay Seth, commissioner of commercial taxes, Karnataka, adding that sometimes the traders are made to spend more time on government related activities than engage in trade.
He was addressing an interactive session on ‘E-Governance initiatives – Recent Developments under K-Vat Act' (online uploading of purchase and sales statements), organized by the Kanara Chamber of Commerce and Industry (KCCI) in association with the Institute of Charted Accountants of India (ICAI), Mangalore here on Wednesday, May 28.
Commenting on the efforts of the government to further simplify the tax policy, he said that E-governance is one of the measures taken by the government towards simplifying the process for tax payers. Giving examples of online services like E-Sugam, CID Karnataka, E-Suvega, E-payment and the easy access of ‘C’ forms etc, he said, "The objective of the government is to make the tax policy fair and user-friendly and not to hinder the trader activity."
He also said that states such as Gujarat, Maharashtra, Rajasthan and Punjab are ahead of Karnataka in terms of designing indirect tax policy. He also spoke on areas where the tax policy has to be improved upon.
GST reforms by 2015
"The Goods and Service Tax (GST), one of the biggest taxation reforms in India will be ready by April 2015," said Ajith Seth during the session, adding that all the political parties and state governments have agreed to implement it in their respective states.
He added that the GST will replace all indirect taxes levied on goods and services by the Indian central and state governments. It aims at being a comprehensive tax solution for most goods and services, he said.
The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.
Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold.
CA Shyamala Shenoy, chairperson, Mangalore branch of ICAI, M Ganesh Bhat, CA Nanda Gopal Shenoy, Ram Mohan Pai Maroor were among others present on the dais.