VAT Amendment Bill passed in Meghalaya Assembly

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Shillong, Nov 13 (UNI) The Meghalaya Value Added Tax (amendment) Bill 2008 and Meghalaya Passengers and Goods Taxation (amendment) Bill 2008 was passed in the Assembly today with an aim to streamline the taxation department.

State taxation minister J A Lyngdoh tabled the two Amendment bills. The amendment of VAT will empower the government to decide the category of dealers who should not be benefitted by the input tax credit (ITC), while the amendment to the passengers and goods taxation would add Rs 1.40 crore to the state exchequer annually.

Later, talking to reporters after the House unanimously passed the amendment Bills, Mr Lyngdoh said the government would would soon pass a notification that industries enjoying different kinds of incentives and paying one per cent VAT will not be benefited by the ITC.

''The amendment VAT Bill will enable small contractors to pay a lump sum amount of 4 per cent or 12.5 per cent as VAT without the ITC. However, they have to maintain a book of accounts,'' he said.

The contractors, however, will still need to maintain a book of accounts, he informed.

On the passenger goods taxation Bill, Mr Lyngdoh said the Bill will enable the government to increase tax from 10 to 15 per cent.

'' The increase was after 35 years and it will not trigger price rise, but would increase the state exchequer,'' he stated, while pointing out that the tax will be charged on the basis of turn-over at the time of assessment quarterly or yearly.

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