You are here: Home » Economy & Policy » News
Business Standard

Bengal VAT rules on Feb 21

Our Bureau  |  Kolkata 

The will come out with its revised and final draft rules on (VAT) by February 21.
The rules would be re-examined three months after its implementation when it would be considered for amendment once again.
The final draft will aim at converging the white paper on VAT released last month by the Centre with the State VAT Rules, 2003.
This will be followed by changes in the State VAT Rules to eliminate operational deficiencies that might exist in the existing rules.
"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.
He said the draft will incorporate points like continuance of existing incentive schemes under VAT which was earlier not possible under the Rules.
"It will also bring down rates on certain other products and services that were notified to be taxed on higher rates," he explained.
Bachhawat said operational deficiencies were bound to spring up after VAT was implemented from April 1, 2005.
"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.
He said the Rules would be re-examined after the first quarter of the next fiscal on the basis of deficiencies exposed.
"The government would then make suitable Amendments to bring in desired operational efficiency," he added.

First Published: Wed, February 16 2005. 00:00 IST