VAT - Authority for Clarification and Advance Ruling under TNVAT Act mooted – Already 1509 clarifications given
Under the TNGST Act, clarifications were issued by the Commissioner of Commercial Taxes under Section 28-A of the Act. Though, there is no similar statutory provision under TNVAT Act, to remove the difficulties faced by the dealers in understanding the provisions of VAT Act, Rules and Schedules in the transitional period, clarifications are issued by the Commissioner of Commercial Taxes administratively. So far 1509 clarifications have been issued.
Now, 20 months have passed after the introduction of VAT. Most of the transitional issues have been settled and clarifications have been issued clearing almost all the doubts regarding rate of tax and other procedural aspects of the Act and Rules. However, letters seeking clarification on frivolous matters are continued to be received by the Commissioner, Commercial Taxes. Most of the clarifications sought now are of the following nature:-
(i) Clarification already issued to the same commodity, but the dealer wants to have a clarification issued in his name.
(ii) Clarifications seeking confirmation of Entries in the Schedule.
(iii) Clarification on the same commodity to enable to have an interpretation in favour of the petitioner.
(iv) Clarification on the assessment procedure.
(v) Clarifications seeking confirmation of the method of filing return/calculations.
(vi) Petitions seeking intervention of the provisional assessment proceedings.
(vii) Clarifications sought from STPs, Accountants, Auditors and Advocates.
Proposals have been sent to the Government for creating an Authority for Clarification and Advance Ruling under TNVAT Act. In the meanwhile, till necessary amendment is made to the Act, it has been decided to forward the letters seeking clarification received in the Commissioner's office to the Territorial Joint Commissioners concerned. Joint Commissioners in turn will forward the same to the assessment circles concerned and instruct the Assessing Officers to give necessary clarification based on the provisions of the TNVAT Act & Rules, Government Notifications and the earlier clarifications.
If the dealer is not satisfied with the clarification given by the Assessing Officer, they may be further clarified by the Territorial Joint Commissioners. Even then if the dealers are not convinced of the clarification issued by the Territorial Joint Commissioner, they may seek clarification with Principal Secretary/Commissioner of Commercial Taxes.
Further, the Territorial Joint Commissioners are directed to convene monthly meeting of dealers' associations of their jurisdiction at zonal/district level to redress their grievances.
Can the Central VAT Department think of something like this?
Commissioner, Commercial Taxes, Chennai Circular No.23 Dated: September 29, 2008