UP VAT date Jan 1, ordinance on way

Trade Tax Commissioner Sunil Kumar said all preparations were in place and the department was now equipped with the necessary training to implement the tax.

Immediately after coming to power, the Mayawati Government initiated the process for the implementation of VAT. Different committees were formed to study the tax structure in states already under the VAT regime. By August, the Department of Trade Tax was ready with its proposed UP Value Added Tax Act 2007.

On October 19, the UP Cabinet approved the draft Bill and forwarded the same to the Government of India. To make it an Act, the Bill needs to be tabled in the Assembly. Top officials, however, said if the Bill was not tabled before the Assembly in the current session, the Government has the provision of coming up with an ordinance any time before the proposed date of implementation.

Salient features

•Only state to abolish all provisions relating to prosecution of dealers under the VAT Act

•Only state to provide Input Tax Credit on opening stock of semi-finished goods

•Only state to have provisions for Settlement Commission to resolve cases of tax evasion of more than Rs 1 lakh

•Only state to have the provision of Board of State Taxes — an apex advisory body regarding the system of tax collection, changes in rate of taxes, promulgation of schemes, notifications and orders