VAT implementation to clash with tax filing

With just 12 days left for the implementation of the value-added tax VAT in Gujarat, the state government is yet to frame the rules of VAT. Chartered accountants and advocates in the state are confused as the time of filing taxes is coming closer. It seems that March end will clash with VAT implementation.

"The accountants and tax advocates are eagerly waiting for the VAT rules, for, they need to understand the rules before helping their clients. Earlier, the rules were expected to be framed within this week but now it seems that the state government will do it next week," said Pradeep Jain, president of Gujarat Sales Tax Bar Association (GSTBA).

"If the state government issues the rules next week, then it won't be possible to change the old norms all of a sudden as, everyone would be busy filing taxes. It would be very difficult to manage both together," said Jain.

Businessmen are still in a dilemma with presentation of the accounts and statement of stocks, said Jain.

"State government was also supposed to reveal the format of the statement of stocks and accounts. There are several questions on procedures, stationery and work format," he added.

When contacted, P K Pujari, secretary finance, said, "We will try to release the rules before this weekend. If not in this week, then the list of rules will be framed in next week." The business fraternity in Gujarat will be clueless till the first quarter of 2006-07, said Pallavi Acharya, a city-based chartered accountant.

"The government already late to release the rules. It is still not clear with the rules and this will result in a burden for businessmen and 'Aam Admi' (common man)," she added.

Harish Panchal, secretary of GSTBA said the government would have released the rules one month prior to the implementation date or else it should be postponed for a month.

He said there are more than four lakh dealers in the state and it would be very difficult to explain the rules to all the dealers in 12 days. "The printing stationery trait is not sure whether to print duplicate or triplicate books for accounts and what way the format should be," said Mehul Gandhi, a tax advocate.