The Delhi Assembly passed the Delhi Value Added Tax Bill 2015 with a thumping majority on Friday which will enable collection of tax in advance on goods imported from outside India. Besides, traders will have to face two-year imprisonment for violation of VAT to the tune of Rs one crore. Also, the Bill grants power to VAT Commissioner to set up special designated court for VAT violators and appoint special public prosecutor to prosecute them.
Currently, it is a cognizable offence with maximum punishment of six months. “As of now the quantum of punishment is six months which has now been extended to minimum two years. The Delhi Value Added Tax Act, 2004 is proposed to be amended to incorporate some specific provisions, which are necessitated by a variety of compulsive reasons, varying from removal of some discrepancies/ anomalies noticed by the department or brought to its notice by the stakeholders from time to time, making the tax administration more efficient and for making some changes required in the public interest,’’ Delhi Deputy Speaker Manish Sisodia informed the House.
Also, the Cabinet has approved making digital signature mandatory for traders while filing returns to the department to make VAT office paperless.
AAP MlA SK Bagga said this Bill seeks to punish the VAT offenders and will also reduce the corruption. “Aam Aadmi pays VAT and thinks that he has done his job. They are not aware that sometimes VAT offenders do not pass on money to the Government. This Bill seeks to make things more transparent.”
Meanwhile, the VAT growth rate in Delhi has continued to dip despite the Government hiking VAT on petrol and diesel and bringing officers of their own choice in the Trade and Taxes Department. The total collection of VAT is Rs 12,850 crore till November this year. The gap between Rs 12,850 crore and Rs 11,250 crore is huge and only four months have been left in the current financial year, said sources.