Hyderabad: In what is likely to hit the common man in both the new states after bifurcation, senior officials from the Commercial Taxes department have hinted at a steep increase in the cost of goods and services after division.
Speaking at a conference on Commercial Taxes held at FAPCCI here on Tuesday, commissioner of commercial taxes, Hiralal Samariya, said that tax rates would definitely go up post bifurcation due to CST, cost of transport and other such implications.
“The taxes will be applicable according to the business operations in both states and cost implications are definite. Cost of some business operations will go up due to the tax structure in two states. Once the two states are formed, naturally the CST will come into play, there will be some increase in the cost of operations for some traders and there will be a need to rework their business economics,” he said.
Meanwhile, industry representatives raised a number of issues such as the requirement of new offices in both the states as physical address for a new TIN (tax-payer identification) number is mandatory.
The official said that a new TIN number would be applicable for Telangana state and the department had already written to the Centre regarding this. “The new TIN will be applicable for Telangana state and the clearance is awaited from the Government of India. We should start issuing new TINs in April. Traders must use separate TINs for the two states when they are filing tax returns. The taxes will be applicable according to the business operations in the both states. The tax revenues can be shared between the states and 53 per cent revenue will go to Telangana and 47 per cent to Andhra Pradesh,” he said.
The commissioner stressed that the division of the department had begun and taxation for two regions separately should be done immediately from June 2 onwards.
