The Punjab government has decided to introduce online payment of VAT refunds from April 1, 2013 to bring transparency and expedite the process of refunds. A dedicated corpus of Rs 150 crore will also be created in the excise and taxation department to ensure hassle-free refunds, which will be replenished every month as per withdrawal.
Deputy Chief Minister Sukhbir Singh Badal announced this on Thursday while presiding over a meeting of state consultative committee of the excise and taxation department. “Directions have been issued to stop payment of cheques, as it leads to corruption. Every payment to dealers should be done through online banking. Similarly, the department should accept receipts of all taxes through online banking,” he said.
Moreover, on the suggestions of VAT dealers, a corpus of Rs 150 crore has been created to ensure uninterrupted refund to the dealers, he added. VAT dealers, as per their record of compliance, would be categorised — ranging from one-star to five-star — and the latter would get priority in all services provided by the department. Sukhbir has asked the department to honour highest taxpayers in every city to motivate people to pay their taxes honestly.