VIOLATION OF SPIRIT OF VAT
THE RAJASTHAN GOVERNMENT HAS MADE THE GENERAL RATE OF VAT (THE RATE ON GOODS FOR WHICH NO RATE OF TAX IS SPECIFIED) 14 % INSTAED OF 12.5% AND TODAY I RECEIVED A SMS THAT MP GOVERNMENT HAS INCREASED THE RATE OF VAT ON SCHEDUE II GOODS FROM 4% TO 5%. THIS IS CLAEAR VIOLATION OF SPIRIT OF VAT.
SEE HERE WHAT IS SAID IN THE “WHITE PAPER ON VAT” PREPARED BY THE EMPOWERED COMMITTEE OF STATE FINANCE MINSTER ISSUED BY THE EARSTWHILE FINCNE MINISTER MR. P.CHIDAMBARAM:-
VAT Rates and Classification of Commodities
2.19 Under the VAT system covering about 550 goods, there will be only two basic VAT rates of 4% and 12.5%, plus a specific category of tax-exempted goods and a special VAT rate of 1% only for gold and silver ornaments, etc. Thus the multiplicity of rates in the existing structure will be done away with under the VAT system.
How it is possible to violate the basic spirit which was declared in the white paper which was issued at the time introduction of VAT and further when how Dual GST will be introduced from 1st. April 2010 when states have already started violating the basics of VAT within less than 5 years on its introduction.
How tax payers can believe our Lawmakers ??????????
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