Chennai, Jan 7: Tax reforms since 1991 have made trade easier and increased revenue collection, which has gone up from Rs 28,110 crore to Rs 61,000 crore in 1999. However, several excise and customs-related issues are to be sorted out. The Centre has been setting up committees to carry forward the reform process. The Southern India Chamber of Commerce and Industry (Sicci) in a pre-budget memorandum on indirect taxes, says that it is high time that the Centre started implementing the recommendations of various committees and consolidated them in consultation with trade and industry.A lot has been discussed about value added tax (VAT) but nothing has happened, except the state governments agreeing to floor rates. Sicci has called for the immediate introduction of VAT. Under Central Excise, valuation under various titles and different contexts are still confusing and problematic. Sicci suggests that necessary provision should be made to exclude the actual cost of transportation, even when price charged is inclusive of such cost and also shown separately in the invoice for verification.
With regard to additional testing the Chamber says that ambiguity needs to be removed by suitable amendment in the law. It also wants that drawings, blue prints, technical maps etc should not be subjected to valuation, as it is not possible to value them correctly for the purpose of apportionment.Similarly the valuation of goods transferred to depots, and for clearance of goods manufactured on job work needs proper definitions.
Sicci suggests that the principle of valuation laid down, in the judgement of the Supreme Court in the case of Ujagar Prints, can be framed as a rule to cover transactions of job work, where the value cannot be arrived at by following the existing rules. Sicci has suggested changes in Cenvat scheme. u uThe memorandum says ``The deemed provision of manufacture in the Cenvat scheme for removal of inputs and capital goods needs to be committed as the same would be in contradiction of the costing principles, with which value is to be determined.''
With regard to customs duties Sicci has requested that the procedures at ports should be simplified. It has suggested that a monitoring committee, with representation from port trusts, department of revenue, freight forwaders etc, may be formed at each port to oversee the clearanace of goods. It also wants the rationalisation of warehousing procedures especially in 100 per cent export-oriented units.
Under general issues the topics brought forward for the consideration of the Centre are: Self removal procedure and interest on delayed payment of duty. In the latter case, the Chamber wants that rate on late disbursement of refund, should be equal to the rate charged from assessees on delayed duty payment.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
