Nellore: Traders across AP are in a confrontational mode after the government made an amendment to the Value Added Tax Act recently. Chamber of Commerce representatives are objecting to Act No 4 of 2016, which gives powers to the Commercial Tax department to convict any driver of a goods vehicle from one month to 6 months if they failed to stop when officers asked them to.
The same punishment is applicable if there is no entry of the goods made at the check post. This is in addition to a fine for the transporter of up to Rs 1 lakh while the dealer has to pay the value of the goods as fine.
The amendments pertaining to reimbursement of input tax are also causing heartburn to dealers. Input tax was, until now, returned to dealers on production of the invoice of the goods they purchased, but the new amendment makes them responsible for the payment of tax due from the dealer who was buying the goods from them, if he defaulted. Incidentally, all transactions are online and available at any point of time to the department.
Traders are questioning why they, and not the Commercial Tax department, were being held accountable when other dealers were not paying tax. They suspect that the government is trying to fill its empty coffers by imposing heavy fines.
Vice President of State Chamber of Commerce Sannapareddy Penchal Reddy said that they would take the issue to the CM through transport minister.
