The registered dealers who have paid Value Added Tax (VAT), at the time of purchasing material are facing a lot of problems in getting an input tax credit because of non-payment by selling dealer or wrong entry in their audit report, said CAIT members.
B C Bhartia, national president CAIT, said the government is forgetting that it has already recovered tax paid by the distributors to the company, which comes to about 80 percent of the maximum retail price (MRP).
Further many retailers are under composition where the government is getting tax under composition. Now for a nominal tax innocent, retailers arms twisting is being done to recover amount which is more than the tax due to the government, said Bhartia. The VAT department instead of penalising the wrongdoers, the persons who have not paid VAT in government treasury or have field wrong returns but are harassing the innocent buyers who have already paid it while making purchases. The VAT department is issuing notices to those purchasers who have shown purchase but the seller is not showing corresponding sales in his return. So instead of taking action against wrongdoers, they are targeting innocent traders, Bhartia alleged.
Secretary Dyaneshwar Rakshak said the retail traders are required to purchase products of companies through their distributors. In many cases, distributors collect VAT after selling the products but do not deposit it in the government treasury. As a result, the retailers are receiving notices of huge amount.
The matter was raised at the CAIT meeting. The traders said that officers are attaching bank account of retailers who are not at fault. The officers should punish the wrongdoers instead of retailers. Letters to this effect were sent to joint commissioner OS Sales Tax, who assured proper action but surprisingly no action is being taken. In today’s meeting, the traders affiliated to CAIT demanded that no action of recovery should be taken against retails who, have genuine purchases bills and the department should follow up the matter with those not following the procedures.
The traders also urged the government to declare an amnesty scheme or a scheme of fast track where original bills are produced before the officer input credit should be allowed.
The meeting was chaired by chairman Gopal Agrawal. Kishore Dharashivkar conducted the meeting. Rajkumar Gupta, Nikhilesh Thakar, Ravindra Gupta, Ravindra Padgilwar, Moreshwar Kakde, Madhusudan Trivedi, Subhash Joharaputra, Vijay Gupta, Ramesh Umate, Satish Bang, Arif Khan, Swarnima Sinha, Chhaya Sharma, Jyoti Awasti, Jayshree Gupta, S B Bhutolia, Meena Vashak, Rekha Chaturvedi, Sanjeevani Chaudhari and others were present at the meeting..