The UT Administration is likely to consider bringing down the VAT (value added tax) levied on several food items in the Union Territory of Chandigarh. The issue was discussed at a meeting of Chandigarh VAT Advisory Committee held on Wednesday convened by UT Excise and Taxation Department. The city’s traders, industrialists and members from Chandigarh Beopar Mandal attended the meeting.
During the meeting, issues that were discussed included sales tax payments through banks, audit limit for assessment of sale tax cases, rationalization of tax, status of VAT on services and service charges in case of restaurant, refund of closing stock, selection of scrutiny cases, reward for honest tax payers, allowing of business premises and godowns in villages.
The traders raised the issue of bringing parity on VAT levied here with Punjab and Haryana. The representatives of various Associations at the meeting demanded that taxes levied on timber, blankets, gold/silver coins & silver utensils, pulses, cream & desi ghee, sweets, iron & steel among other items should be rationalised.
The issue of restaurants levying VAT and service on 100 per cent of the billing instead of 60 per cent was also raised. They said VAT on services is not leviable and be it only on the
product. It was also demanded that the trade wise high tax payers who are honestly depositing tax should be honoured to encourage the other dealers to follow the suit.