VAT registration and compliances issues
Vat is a tax collected on sale of goods. Its so simple, One sales goods and collects tax from customers. Same tax is to be paid to government by seller.
I earn in state of Karnataka. The procedure to get vat registration is most complicated in Karnataka.
The various steps involved are:
- Applying for registration
- Security Deposit
- Obtaining certificate
I dont understand one thing, why all these for a simple task.
If we compare the vat registration procedure in Chhattisgarh, the procedure in Karnataka is very complex.
Its not only the procedure but also the attitude of government officers. Believe me government officers in Karnataka are worst in this world.
The foolest people are employed in government department. These department as per me should be outsourced to private sector.
What you think, how is the vat administration in your state?
I differ on your opinion
a. Though government sector is still driven by paper and file system, efforts are introduced to get that technologically backed, so that work gets faster.
b. Technological advancement like replacement of VAT registration application through online application procedure is put to place, the people behind are not able to coup with the technological change. its not privatisation answer but working with people with team is a solution. its a different thing that people at department use the technology as barrier to get what is needed.
c. Inspection of premises is much needed as unscurplous elements can start with VAT registration and may engage in illegal activites. A premises establishment is the first step that business is honestly being set up.
d. Agreed the procedures are a little stringent, however the procedure laid down are based on some guidance based on previous experiences. In future systems may be introduced wherein the procedure you have mentioned may be waived off in total
I too differ on your opinion as i feel because common people are cheated.
For instance you said work is done by paper and pan but technology is being introduced. If technology is introduced than why pan and paper. We have to scan and upload the documents and also take the xerox and give it to department. Dont you think its double work involving valuable time.
Again you said, online application etc., because people behind are not efficient should common people suffer.
Third point that physical verification is required to check whether business is started. I dont understand if someone wants to cheat, he will do it. People takes offices temporary to get the registration done. Even if business owners cheat, how can department catch him by inspecting his business place.
Last point, you mentioned procedures are laid down based on past experiances and here is the problem, rules are framed by looking at past experiances and future or present is totally ignored.
Amazon or any online portal for that case is having issues with VAT laws of all states. We cant say that business model needs to be changed as per law, i believe to efficiently collect taxes law has to as per business model.