Under section 17 (1), if a dealer fails to file any return in time, the commissiner can pass an assessment to the best of his judgement without giving any notice or hearing. This is totally absured as a dealer may fail to fill reture becouse of illness or some other urgent work out of town. Like earlier saletax act, government can charge interest on amount due or on delay filing of return. We can not copy western and Chinies country in this section, because we have to be careful about the curruption level also in our country.
Petrol and Desiel prices are kept out of the net of vat. These products cost highest in mumbai out of 4 metros and cheapest in Delhi as per rates shown on TV. In mumbai, people could have found some relief but government was shrude enough while chosing items within vat or outside vat as per their convinenience of collecting tax, without taking into consideration of its effect on public. It is shocking thing to note that onion which is basic food even in villages in maharashtra attracts 12.5% tax. Even the Bhatttea stall bellow building staircase in Masjid and Fort area or in narrow lanes of suburbs, attract 10% vat tax on every tea or Vadapaw sold as an unregistered dealer.(Every unregistered vat dealer in restaurants industry has to pay 10% vat tax.).Thus every cutting tea sold for Rs. 2 attracts 20 paise vat taxand every vadapaw sold for Rs.4 attracts 40 paise vat tax.Even all raw materials used in preparing these tea and vadapaw are tax under vat laws.(Wheat powder, tea, edible oil are tax 4%) (Sugar is not mention in schedule os it is tax at 12.5 %). These tea and Vadapaws are basic lunch and dinner of many of our labours.
Vat tax on under garments such as under-wears, banians, bras etc including pajamas and kurtas which are basic necessity and essential items attract 4% tax whereas, wedding sarees are tax free. How fare is it justified taking into account that even villagers use these under garments.
