The Finance Minister must accelerate the implementation of CENVAT. The rules regarding VAT on inter state transactions are not very clear, the result being tax-evasion and higher prices of commodities. Introduction of CENVAT will help traders secure VAT CREDIT on transactions throughout the country (currently available only on inter state transactions) thereby avoiding tax-evasion and also reducing prices. It will lead to a win-win situation where real income of consumers will increase and the tax collections for the GOVT will increase, both due to greater volume of transactions (indirect taxes) and avoidance of tax evasion.
Bhrat.C.Jain
Student.
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