Meeting with Sri Heeralal Samariya, IAS, Commissioner of Commercial Taxes

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with the Department of Commercial Taxes, Government of Andhra Pradesh organized an Interactive Meeting with Sri Heeralal Samariya, IAS., Commissioner of Commercial Taxes, Government of Andhra Pradesh on “Issues arising out of Re-Organization of State of Andhra Pradesh - Pertaining to Commercial Taxes” on 25th March, 2014 at 4.00 p.m. at Federation House, Hyderabad.

Sri Shiv Kumar Rungta, Senior Vice President, FAPCCI, Smt. Christina Z. Chongthu I.A.S., Special Commissioner of Commercial Taxes has interacted with trade and industry. Sri G. Lakshmi Prasad, Sri D. Ramachandra Reddy and Sri G. Venkateswarlu Addl. Commissioners and Sri V. Harsha Vardhan and Sri Y. Satyanarayana Joint Commissioners of Commercial Taxes, Sri Anil Reddy Vennum, Vice President, FAPCCI, Sri Ravindra Modi, Chairman, Commercial Taxes Committee have participated at the session.

Sri Heeralal Samariya, IAS., Commissioner of Commercial Taxes, Government of Andhra Pradesh interacted with traders and informed that from June 2, 2014 onwards new Tin number will be applicable for Telangana State. The traders must use separate Tin numbers for the both 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 to the both States and 53% Tax revenue goes to the Telangana and 47% will be for Andhra Pradesh State. Any dispute or grievances will be having at the time of returns filing, the problems can send to the concerned authority level and officials try to solve the problems within 24 hours.

Sri Shiv Kumar Rungta, Senior Vice President, FAPCCI raced few issues related to State bifurcation at his welcome address. He said that the trade and industry is neither conversant nor can comprehend the ramifications of changes that are bound to happen upon bifurcation.  In fact, apprehensions and fears are making their life miserable with no one in authority to assuage their fears or offer any clarity.  Large number of issues pertaining to inter-State trade has to be sorted out a sample of the issues that need to be addressed is mentioned below.

 Tax incentive in the form of Tax deferment has been sanctioned to several new/expansion industries. Such deferred tax has to be repaid in 14 years. Both the Governments must make it clear to which State such deferred tax has to be remitted, to avoid pressure from both the authorities and unwanted litigation.

 As on the date of bifurcation, large number of dealers will have huge amounts as Input Tax Credit (ITC) to their credit. Such credit is in relation to the transactions affected in the composite State but would be set-off against output tax payable in the new State. Such dealers must be allowed to avail full credit without any issues.

 There is levy of Entry Tax on the entry of Motor Vehicles into the composite State. Consequent on bifurcation, it is necessary to make statutory amendments exempting from such levy of entry tax on the entry of motor vehicles from Telangana State into AP State and vice versa.

 At present the dealers in the State are paying 2% CST under CST Act purchased from other States like Tamilnadu & Karnataka etc. If the State of Andhra Pradesh is bifurcated, the dealers of Telangana as well as Andhra will have to pay 2% CST extra and collect ‘C’ forms to avail concessional rate of Tax.

 It is therefore request the State Government to recommend to the Central Govt. to include the provision not to impose CST Act for businesses between Telangana & Andhra Pradesh as a package for a period of 10 years to reduce the extra burden on Trade & Industry and also on consumers of the both the States.

Sri Ravindra Modi, Chairman, Commercial Taxes Committee requested the government to kindly take up the transition issues and all the long term related issues of trade and industry pertaining to Sales Tax, State Excise and Transport on mission-mode in the larger interests of the new States, business and consumers.

Media Release by: Adventura (A Kushmanv Group)