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Sunday 12 June 2011

Practical Problems faced by dealers under VAT-Suggestions

  • Information for Dealer data base updating - Column Date from which registered under VAT, in many cases the department database have wrong information and a result the correct date which is now uploaded by the dealer is not accepted by the website. The issue must be resolved instantly.
  • After filing the return online, dealer is required to submit acknowledgement of the return filed in 15 days time with department. Where the dealer fails to submit the acknowledgement in time, return is required to be submitted again. While resubmitting the return, departmental site compel dealer to file a revised revised return and in want of date of submitting original return the revised is return is not uploaded. This is typical situation. The problem should be addressed immediately 
  • The ITC refund should be allowed in a time bound manner. The system of ITC verification needs to be streamlined. Presently the department is verifying all purchases invoices from 1/4/2006 to till application is submitted. The exercise is time consuming and tedious. The ITC refund claimed may be verified to the extent only following the FIFO method. For example dealer A has claimed ITC refund of Rs. 100,000/-, then ITC in purchases invoice following FIFO method should be verified till the ITC reaches Rs. 100,000/-.
  • Deemed assessment scheme for Financial Year 2009-10 is welcome. Time limit for submitting the declaration form is 15/07/2011. If declaration forms not submitted by that date dealer is automatically out of the scheme. The provision is harsh. Assessment should be deemed to have been made in such cases with demand raised for the declaration forms not submitted. The present provision of rectification and recovery shall take care of the resulting situation.
  • Application for change of name and change of address should be strictly disposed off in 15 days time frame. Delayed disposal is hampering the ITC verification and resulting in undesired complication to the dealer.
  • Rectification applications and application for appeal effect not disposed off by the department for years together. A register in each ward/circle may be maintained for receipt and disposal of such application to monitor the quarterly progress  of pendency and disposal. A system of issuing computerized acknowledgement should be started.
  • Provision of E-filing of all VAT returns, barring a few cases, is a welcome step forward in complete automation and transparent VAT system. Looking to the difficulties faced by small dealer E-filing at nominal cost/ no cost should be provided at departmental level.