Dept forgets to change advance tax after VAT slash
February, 04th 2016
Laxity on the part of officers of the excise and taxation department is costing businessmen in the state dear. The department, after issuing a notification for reducing VAT on sarson and binola khal (oil cakes) from 5% to 2% on December 14, forgot to change the rate of advance tax on these articles in its system.
Due to this, traders and manufacturers purchasing these products from outside the state are being forced to pay advance tax at the rate of 5% instead of 2%.
Now we have to have a rationalise the tax system and make it simple for all to understand and pay.
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After repeated reminders from trade associations and businessmen, the department has finally decided to initiate rate change this week. Commenting on the issue, the department's assistant excise and taxation commissioner (AETC), VAT, Pawan Garg, who also happens to be AETC-3, Ludhiana, said, "The problem has come to our notice and it will be resolved in a day or two. The rate of advance tax will be applicable to the actual 2% this very week."
However, businessmen are up in arms against the department, alleging that its failure to act on time has led to problems for them as they had deposited 3% additional advance. Sushil Jain, president, Punjab Oil Miller & Traders Association, said, "We brought the problem to the notice of officers in December and we also sent reminders. But till now, we have been given no relief and we don't know how many days they will take to correct this error. Officers of the department haven't even clarified when the excess amount of advance tax will be refunded."