UP All Set To Implement VAT

The Trade Tax department of Uttar Pradesh is gearing up to implement value-added tax (VAT) in the state. The VAT draft has been finalised and will be sent to the Centre for approval by early next month. This was stated by Sunil Kumar, commissioner (trade tax), Uttar Pradesh, in a workshop organised by PHDCCI on ''preparation for VAT in UP'' in Lucknow. The department has also put the draft on its website and has invited suggestions from people. Uttar Pradesh is in the process of adopting the new tax regime. Until recently, UP was the only state that had not adopted VAT. But after chief minister Mayawati''s nod for VAT implementation, the state machinery is all geared to implement it. Though UP is the last state to adopt VAT, yet it is not at a loss. It has the benefit of gaining from the experience that the other states have had in its implementation in their respective states. UP can learn from the problems faced by them and can avoid its replication here, explained R Muralidharan, associate director, PriceWaterhouseCoopers (PWC). Speaking on the occasion, Ram Poddar, chairman, indirect tax committee, PHDCCI, highlighted the fears and concerns that is bound to be present with the introduction of the new tax regime amongst the trading community, especially the small traders in regard to either the tax burden going up or possible hassles in the compliance of the law.