Jamshedpur, Aug. 8: The state commercial tax department has decided to do away with mandatory security bonds that traders, as of now, need to deposit for registering their businesses.
Secretary-cum-commissioner (commercial tax) Nidhi Khare today announced the decision, which is likely to simplify the registration process and thereby, help expand the tax cover.
Currently, a trader needs to pledge two mandatory security bonds, each worth a minimum of Rs one lakh. The value of the bonds may increase depending on the size of the business.
Khare, who was in the steel city to interact with traders and retailers, said: "Come September, traders, applying for registration with the commercial tax department under the Jharkhand Value Added Tax Act 2005, will not have to pledge security bonds anymore This is part of the department efforts to simplify the registration process."
Around 300 traders and retailers from across East Singhbhum and neighbouring Seraikela-Kharsawan district were present at the interactive session at Chamber Bhavan.
After listening to grievances of the traders, Khare, who had served as the deputy commissioner of East Singhbhum immediately after the formation of the state, also extended the last date for filing the first quarterly returns till August 31 from August 14. She also urged the traders to opt for online payment of commercial taxesto bring in more transparency.
Some traders, especially those supplying materials to automobile major Tata Motors, claimed that they had to face problems owing to delay in issuance of road permits by the department for their vehicles.
On this, the department secretary promised to look into the matter and added that vehicles carrying goods within the state would not need any road permit from the commercial tax department.
Later, speaking to mediapersons on the sidelines of the event, Khare said that the interactive session was aimed at finding ways to boost tax collections. "We want to find out the grievances of traders and address them to increase our tax base. As of now, we have been achieving less than 80 per cent (nearly Rs 11,500 crore) of the target. We are trying to simplify the registration to motivate all traders to pay commercial taxes," she said.
