Adiya Raj Das
NEW DELHI: In run up to forthcoming Budget 2015-16 for Delhi the All India Tax Advocates Forum (AITAF) has urged the Delhi Government to reduce the exorbitant penalty being imposed by the Value Added Tax (VAT) Department on traders for late filing of return in order to create business friendly environment to promote trade and business.
“Currently penalties being imposed by the VAT Department for late filing of return are quite stiff. The current rate of penalty of Rs 500 per day should be reduced to Rs 100 per day and maximum penalty should be reduced to Rs 10,000 from the current amount of Rs 50,000. This friendly gesture will boost the morale of traders, who are reeling under higher rate of taxation,” the AITAF President, M K Gandhi said in a statement issued here.
The AITAF also urged the Delhi government to review bogus demands being raised by the VAT Department for the assessment year 2010-2011 in regard to finalization of computer assessment made by the Department under Central Sales Tax Act.
“The VAT Department had raised bogus demands even though dealers had furnished statutory forms filed with the authorities along with DVAT 51 and furnishing details of statutory forms in R 10. In spite of this the Department had raised illegal demands and imposed penal interests,” Gandhi—a noted tax consultant said.
The AITAF also suggested that the in the forthcoming Budget the Delhi government should launch Amnesty Scheme for the Assessment Years 2012-13 and 2013-14 as was done in the past.
Gandhi said that whenever the trader would make payment of disputed tax and interest under the scheme no penalty be levied.
“This will save the time, energy of both the Department as well as the dealers and enhance the tax collection,” Gandhi said.
The AITAF President also urged the government to restore the objection filing link so that dealers can submit their details of objections filed and can get the statutory forms issued on line from the system.
The problem of payment reconciliation has arisen as the Department has recently removed the objection filing link from the payment reconciliation icon. As a result, the dealers are unable to download the Central Statutory Forms due to demand created on account of 2A and 2B mis-match
