Enabling traders to get Value Added Tax (VAT) and Central Sales Tax (CAT) registration within just 48 hours, the government will also set up a business intelligence unit to prevent tax evasions (that run into several thousand crores of rupees).
Minister for Commercial Taxes M.C.Sampath, who moved the demands for the department in the Assembly on Monday, said at present it took up to 30 working days for the registration, which authorised them to collect taxes and take credit for the VAT.
The registration process would be speeded up as it would become possible for the department to inspect the premises of the trader once the registration is completed. Earlier, inspection used to be done ahead of the registration. In 2014-15 alone, the Commercial Taxes department received 58,074 new applications for VAT registration and 40,720 for CST.
Mr. Sampath also announced the setting up divisional large tax payer units for the collection of VAT, CST and entry tax in Vellore, Salem, Tiruchy, Madurai and Tirunelveli. These units would provide services including assessment for the top 75 traders. The large tax payer unit in Chennai assesses tax payers having a turnover of above Rs.200 a year.
Business intelligence unit
The Minister said that in an effort to prevent tax evasions, a Business intelligence unit would be set up and training would be provided to officials to analyse data from the sales accounting software or ERP solution of traders. They would be trained in cyber forensics and forensics accounting.
The unit would collate data from sources including the Services Tax department, Income Tax department and commercial taxes units of other States and other States commercial tax unit so that tax evasion can be found out.
The department would draw up the list of industrial inputs and capital goods that could be purchased at five per cent. This would be done under Schedule I, part B of the Tamil Nadu VAT Act, 2006. Such items have been clearly listed out by other States.
Earlier, Minister for Sports and Youth welfare S. Sundararaj, who moved the demands for his department, announced a Rs. 1.50 crore project to renovate the swimming pool at Velachery in Chennai. Underwater cameras, touch pad system with timer and a seating capacity of 4,000 would be created as part of the work, he said.