Jammu asks for VAT clarification from govt

The ongoing VAT issue is continuing to affect the business of Jammu and Kashmir traders, since the last one month. The local association-Jammu Computer Dealers Association (JCDA) has asked for a reply from the Sales Tax department of J&K regarding an increase in value added tax (VAT) from 5% to 13.5% on IT peripherals and networking products. Traders have stopped raising the invoices of those items which have gone un-specified due to the repercussions arising out of SRO 108 and 122 by finance department.

Speaking to The DQ Week Naveen Gupta, organizing secretary, JCDA said, "The sales tax authority is dumb on the issue pertaining to VAT rates. Now, the matter will delay further due to the new Commissioner taking over the charge."

"Despite our association rigorously following up with the authorities, every time we get verbal assurance of clarifications in this matter, but nothing has been done so far," said Gupta.

Presently, most of the partners are forced to sell their material by issuing challan to customers, in place of invoices or billing as there is no clarity on this matter till date.

IT traders, distributors and vendors are in a fix over the VAT rate at which billing should be raised. Meanwhile, the IT sales have come down by 80%, but still authorities are not breaking the silence. Even the companies are not ready to assure dealers for covering up any loss which may arise out of difference in VAT rate over some items which might go up by 8.5%.

Gupta also asserted, "We have given one week ultimatum to the authorities to issue clarification in this regard, otherwise we are all geared up to hold a massive dharna against the tax authorities."