New Delhi, Apr 2 (UNI) The PHD Chamber of Commerce and Industry (PHDCCI) has welcomed the implementation of the Value Added Tax (VAT) in Madhya Pradesh and has urged the state government to adopt a liberal view towards its implementation.
The chamber has also called on the government to keep the imposition of any penalties in abeyance for at least the first six months, since there may be unintended violations by the assessees.
PHDCCI has said that the implementation of VAT in states is a significant move towards economic integration of the northern region and the economy as a whole. The industry chamber is of the view that it will lead to augmentation of tax collection, as evident in other states where revenue has increased by over 15 per cent in fiscal 2005-06.
With the implementation of VAT from April 1, 2006, the chamber also expects improvement in the tax colledtion system and lower tax evasion through improved awareness among tax officials. Its introduction would also plug the leakages in tax revenue and increase competitiveness.
PHDCCI expects that classification of commodities would be on the lines of HSN system of classification for smooth implementation of the tax.
UNI SS MP KP1813