Dear Tax Payers,
The Commercial Taxes Department bears a heavy responsibility being the highest contributor to the state’s Exchequer.
All the employees of the Department while striving to meet the expectations of Government should aim for providing a seamless interface with dealers.
The Commercial Taxes Department is today already among the leading departments to invest money and resources for IT implementation in governance and citizen services.
All our initiatives are directed at creating a dealer friendly department that delivers services keeping in mind the Citizen’s comfort & well being.
I expect your wholehearted co-operation in this endeavor. Your feedback is essential to help us serve you better.
We are committed to a new era of administration that brings with it the promise of efficiency and transparency-with key focus on the citizens.
About VAT
The A.P. Value Added Tax Act, 2005 is a significant step in the taxation history of Andhra Pradesh. It is designed to be a simple and self-policing system placing trust and confidence in the tax-payer. The system provides for input tax credit to manufacturers and traders alike, thereby removing artificial distinctions between them and inturn paves way for free flow of goods across various sectors. The new Law reduces compliance burden on all tax-payers more particularly the small businesses with turnover of less than Rs.5 lakhs, as they do not have any obligation to register as dealers or pay VAT.
The new Act will also provide for partial rebating on branch transfers and consignment sales. Sales Tax reliefs on stocks held in businesses on the date of introduction of the new Law is also provided for.
There are mainly two rates of tax ie., 4% and 12.5%. This will significantly reduce avoidable litigation. Dealers will have the facility of seeking clarification by way of Advance Ruling which will facilitate planning businesses activities and compliance with the tax obligations promptly and accurately. This Act also provides for an opportunity for the dealers to correct their returns on their own in the event of any inadvertent mistakes committed while making disclosures on the VAT returns. The scale of penalties is also reasonable and aimed at encouraging voluntary compliance.
I look forward to the cooperation of all concerned in making the new tax regime a justified success
The Commercial Taxes Department bears a heavy responsibility being the highest contributor to the state’s Exchequer.