Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: Central Excise rule to resale the machines to a new company :: empanelment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: due date for vat payment :: TDS :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: cpt :: list of goods taxed at 4%
VAT (Value Added Tax) »
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?

Implementing LBT can push VAT collections and vice-versa
May, 04th 2013

While government may say that it only conceded traders' demand when it scrapped octroi and brought in the local body tax (LBT), the move may also help the state increase its collection of value added tax (VAT), say experts as well as sources in state's ministry of finance. VAT is a state-level tax that garnered over Rs 61,000 crore last fiscal, almost half of the total budgeted revenue of government.

Actually, linking LBT registrations with VAT can increase mop-up of both taxes, say experts. LBT is an account-based tax and liable to be paid by the dealer who imports goods into the city. The trader has to keep complete accounts, submit returns and get registered with NMC. Apart from it, everyone having a turnover up to Rs 3 lakh has to get registered and file returns though they may not pay the tax if they are not an importer.

Registrations for VAT with the sales tax department have already been linked with LBT. With this 28,000 dealers in the city registered for VAT have been included in LBT fold.

Under LBT, each transaction can be traced to last level, businessmen down the line are registered too. NMC expects to get 70,000 registrations of which half, being small businessmen, will be from outside of VAT ambit where threshold is Rs 3 lakh. "With an account-based tax, all deals are expected to be recorded. This would increase the overall turnover of businessmen in case he was concealing the deals. A higher turnover will also increase VAT liability which is a turnover-based tax," said R K Ganeriwala, a chartered accountant and member of the state government's committee on goods and service tax ( GST). Moreover, LBT has to be paid directly by the importer unlike octroi which could be paid by the consigner.

Dealers evading octroi could also evade VAT. VAT is taxed at each stage of transaction, starting from the manufacturer. Still, certain evasion takes place right from manufacturing level. The VAT chain can break in between too. due to lack of resources, the department cannot verify all cases. Moreover certain dealers conveniently sell goods in cash to a different party but bill it to a sister concern or a dummy firm to claim a set-off available under VAT and maintain the chain, a source said. The LBT trail can help plug such leakage.

Ganeriwala explained VAT will also shore up LBT collections, it was a common practice that the goods imported were under-reported to cut the octroi liability. But for VAT the actual value was reported. This was for two reasons-- VAT is subject to audit and under-reporting purchases leads to hassles on the income tax front. Now the amount referred in VAT accounts can be taken as base for LBT. This can help increase LBT collection, he said.

However, he also apprehended that with no octroi posts, there are chances that traders would bring in goods and not report at all. In this way, VAT and LBT both could be dodged. For this, a strong system of physical inspection of business premises has been put in place. This is precisely what traders are opposed to saying it would lead to highhandedness.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions