GCCI hails simplification of tax payment under VAT rules

Ahmedabad, Sept 30 (UNI) The recent move of the State Government to give relief under VAT rules would help small traders and the trade community at large and would also bring about reduction in administrative procedures in filing of returns, said Gujarat Chambers of Commerce and Industry (GCCI) president Pankajbhai Patel.

In a release here today, Mr Patel said earlier manufacturers and traders filed monthly returns on goods sold and purchased by them.

Traders involved in trading of petroleum produces were also liable to pay tax and file returns every month.

Even if traders purchased goods in Gujarat and sold them in Gujarat and the total tax payable by them in the previous year was less then Rs 60,000, they had to pay tax and file returns every three months. If the tax liability increased beyond Rs 15,000 in a period of three months, the traders were forced to file returns every month. Traders, working as commission agents for agricultural produces, were also liable to file return every month and pay monthly tax, while traders paying lumpsum tax were supposed to pay tax every quarter, Mr Patel said.

GCCI had urged the government to simplify the system following which the government has now declared traders, paying tax less then Rs 60,000 in the previous year, will have to file returns and pay tax returns only on a quarterly basis. This would be also applicable to all traders who have accepted the option of lumpsum payment of tax.

Traders, who make purchases and sales in Gujarat, and are liable to pay tax more than Rs 60,000 per month, will have to pay tax on monthly basis but file returns on quarterly basis.

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