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Govt starts reward plan to boost VAT collections
May, 23rd 2016

The Delhi government will launch a reward scheme for market associations on Monday in an attempt to boost VAT collections .

Under the Market Associations Reward Scheme , the government will set VAT collection targets for each market association. If the collections from the markets exceed the respective targets, the particular association will get 10% of the VAT collected above the target level. Other than this, 10 best market associations will also get cash awards every year of Rs 5 lakh each. This money will be in addition to the VAT revenue shared with the association for exceeding targets.

Deputy chief minister Manish Sisodia will launch the scheme, along with a special website where market associations will have to register. "To be eligible for the awards, associations will have to register themselves with the Department of Trade and Taxes. An association must have at least 50 registered members and must be a legal entity registered under the Societies Registration Act, 1851. The target for VAT collection has been fixed at 25% above the VAT collected in the last financial year," said a government official.

The web portal, on which associations are to register themselves, will also provide the facility to monitor the filing of VAT returns and deposit of VAT by its members. This will enable the association to pursue with tax defaulters and return defaulters and ensure filing of returns as well as deposition of tax on time.

Officials said that the proceeds from VAT which may go to an association is to be used for the development of public amenities and infrastructure, along with beautification of the market.
The scheme will also help the government keep a tab on bogus dealers, nil tax payers, tax declining dealers and return defaulters.

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