UP Prepare For Implementing VAT

Lucknow: The Trade Tax department of Uttar Pradesh is geared up to implement value-added tax (VAT) in the state. The VAT draft has been finalised and will be sent to the Centre for clearance by early next month. The department has also put the draft on its website and has invited suggestions from people. They have received about 700-800 suggestions from different sectors of the industry on the material posted on our website.

The department, in its process to resolve all queries regarding the new tax, has formed a pool of over 400 frequently urged questions (FAQs) to be posted on the department''s website. Uttar Pradesh is in the process of adopting the new tax regime. Until recently, UP was the only state that had not adopted VAT. UP can learn from the problems faced by them and can avoid its replication here. Indirect tax committee, PHDCCI, highlighted the fears and worries 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.