“FAIR MARKET PRICE (FMP) AMENDMENT WOULD BE A GATEWAY TO CORRUPTION”- CHANDAK
CA Ashok Chandak, Past President of the Institute of Chartered Accountants of India and Past President of South Asian Federation of Accountants an apex body of SAARC and presently Chairman of VIA Taxation and Corporate Law Forum delivered a talk on “Tax Proposal in Maharashtra State Budget 2016” at VIA Hall. The talk was organized by VIA Taxation and Corporate Law Forum in association with Vidarbha Tax Payers Association Nagpur.
CA Ashok Chandak spoke on the Tax Proposals contend in the recent State Budget 2016 & Implications especially to industrial and business community. The talk covered in detail the tax proposal presented in the recent State Budget by Finance Minister, GoM, Shri Sudhir Mungantiwar. He covered in length the detail proposal related to Computerization in Sales Tax Department, Amendments to the Value Added Tax Act, Entry Tax, Profession Tax, Sugarcane Purchase Tax, Motor Vehicle Tax, Lottery Tax, Composition Scheme, Changes to set off rules and Amnesty Scheme. He appreciated the state government over the transparent system whereby the availability of tax credit could be verified by the purchaser and timely remedial measure could be taken in case seller has not paid the sales tax to the government treasury. He further informed the intention of the state government of seeking periodical information from the online e-commerce portal as a result of which tax evasion of the peson selling through e-commerce portal could be curtailed. He further highlighted the TDS related amendment in the VAT & Woks contract Tax system.
He strongly criticized the abrupt power given to the authorities for making an assessment on the basis of Fair Market Price (FMP). It’s a 3rd class, useless and unwanted amendment that will open the gateway of corruption as the discretionary power could be misused to any extent by the department. It will lead to plethora of disputes and litigation and would be harmful for every sector of business, be it industries, traders or professional. He appealed everyone concerned to opposed it at every forum and in every form. He with various examples and practical illustrations have demonstrated the lacunas that FMP system would carry and the harassment that could be caused to the business community. It would give absolute power to seek illegitimate money legitimately, he humored. He with lively examples explained the failure of FMP system even in the case of branded items. He has highlighted the levy of tax on notional & artificial basis and not on transactional value. He further explained about the failure of fair market accounting concept prevailing it in USA. He concluded by opining that on the one side government wants to remove the litigation by introducing amnesty schemes and on the other side makes an amendment that would ignite litigation. Almost on the similar related issues, the Gujarat High court has removed the MRP based tax mechanism, he informed the gathering.
He appreciated the finance minister for the proposed Rs. 1000 crore set aside for the Vidarbha and Marathwarda region towards rebate on electricity duty based on the recommendation of Anupkumar Committee. It would make Vidarbha more competitive over the neighbouring state like Chhatisgarh and Marathwada, he presented. However, he cautioned if the electricity duty could be treated as the part of subsidy under Package scheme of Incentives.
Beginning his presentation, he highlighted the various changes in tax rates proposed. Beginning with 3 tax rates, the present VAT laws have around 10 tax rates, he informed the jam packed gathering.
He in details shared the amnesty schemes details proposed in the budget with the audience and appealed to the industrialist to avail the benefit of schemes to the maximum extent possible.
He applauded the turnover limit for composition to retailers under the MVAT Act increment from Rs.50 Lakh to Rs. 1 Crore. However, he severly criticized the logic behind enhancing the VAT rate from 5% to 5.5%, excluding declared goods. He further explained the prevailing disputes over the tax rates and the present changes on the change in the tax rates.
He further elaborated the Pilot Project to be started by Sales Tax Department for implementation of Digital Billing system soon.
The programme was attended by Industrialists, Businessmen, Accountants, Professionals & VIA Members.
At the outset, CA Ashok Chandak was welcomed by O S Bagadia, Chairman – VIA Economy & Finance Forum. The talk began with introductory remarks by CA. Naresh Jakhotia, Convener, VIA Tax & Corporate Law Forum wherein he questioned over the intention of the government in actually reducing the litigation of the dealers. The programme was well conducted by CA. Naresh Jakhotia, Convener, VIA Tax & Corporate Law Forum & Adv. Narendra Jha, President – VTPA gave a concluding remark & Adv Mahesh Mundada, Secretary proposed the formal vote of Thanks.
VIA Taxation and Corporate Law Forum &
Vidarbha Tax Payers Association Nagpur
invite you for talk on
“Tax Proposal in Maharashtra State Budget 2016”
CA Ashok Chandak,
Past President of the ICAI, New Delhi,
Past President of South Asian Federation of Accountants,
an apex body of SAARC
Chairman of VIA Taxation and Corporate Law Forum
on Monday, 21st March 2016
from 5.00 pm to 7.00 pm
at VIA Hall, Nagpur.
He will speak on Tax Proposals contend in the recent State Budget 2016 & Implications especially to industrial and business community. The talk will be based on the State Budget presented by Hon’ble Finance Minister, GoM, Shri Sudhir Mungantiwar.
Industrialists, Business Community, Professionals, Students take the advantage of the program.
Rohit Agrawal Naresh Jakhotia, Adv Mahesh Mundada,
Hon. Secretary Convener Secretary
VIA VIA Taxation & Corporate Law Forum VTPA