The Telegraph
Wednesday , June 4 , 2014
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Tax tips for small traders

The Jamshedpur Chamber of Commerce has decided to help small-time traders get rid of their apprehensions over VAT registration.

From Friday, the outfit will hold camps at markets in the city and its outskirts to not just convince 5,000-odd traders about benefits of the newly introduced composition scheme under Section 58(1) of the Jharkhand VAT Rules, 2005, but also help them complete Form 103 for registration.

“The composition scheme is for those traders who have an annual turnover of Rs 25 lakh or less and do business within the state. There is general apprehension that after filling up the VAT form, trader will have to provide security bonds, devote time for maintaining book of accounts and furnish sales details every month,” said Chamber president Mohan Lal Agarwal.

But in reality, under the new scheme, traders will be able to deposit 0.5 per cent VAT on quarterly basis in June, September, December and March. They won’t have to provide security bonds or guarantors while filling up Form 103 and can submit PAN cards within three months of registration unlike earlier. The commercial tax department also cannot carry out raids on traders without approval of the department commissioner.

“We have started motivating traders through pamphlets. We will hold meetings from Friday on the scheme, which was introduced in the state in October 2013,” Agarwal said.

Joint commissioner (commercial tax Jamshedpur division) Ranjan Kumar Sinha warned that failure to register for VAT would make traders vulnerable to prosecution. “An offender will be liable to pay a minimum fine of Rs 1,000 and will have to continue paying fine till he gets a registration number,” he added.