The West Bengal government will come out with its revised and final draft rules on value added tax (VAT) by February 21. | |
| The rules would be re-examined three months after its implementation when it would be considered for amendment once again. |
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| The final draft will aim at converging the white paper on VAT released last month by the Centre with the State VAT Rules, 2003. |
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| This will be followed by changes in the State VAT Rules to eliminate operational deficiencies that might exist in the existing rules. |
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| "Amendments in the present rules will be done to incorporate and converge the broad points referred in the white paper with the States Act," explained C M Bachhawat, commissioner of commercial taxes (CCT), West Bengal. |
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| He said the draft will incorporate points like continuance of existing incentive schemes under VAT which was earlier not possible under the Rules. |
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| "It will also bring down rates on certain other products and services that were notified to be taxed on higher rates," he explained. |
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| Bachhawat said operational deficiencies were bound to spring up after VAT was implemented from April 1, 2005. |
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| "Being an absolutely new system for the country, there is bound to be operational deficiencies which cannot be found out unless implemented. Once deficiencies are identified, state governments can take a fresh look at the rules for suitable amendments," he warned. |
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| He said the Rules would be re-examined after the first quarter of the next fiscal on the basis of deficiencies exposed. |
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| "The government would then make suitable Amendments to bring in desired operational efficiency," he added. |
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