Delhi: The Confederation of all India Traders today
slammed the central government saying it had failed to
honour its commitments made in the white paper on value-added
Praveen Khandelwal, secretary-general, CAIT, said, "This
has resulted in different states setting different rates
for the same item leading to loss of business for traders,"
he said while releasing a note on "Nine months of
The body has proposed setting up of a special working
group to remove VAT disparities that have emerged in states.
For example, one per cent VAT was decided for gold but
Rajasthan went ahead with 0.25 per cent and Uttar Pradesh
with 0.15 per cent. Delhi has recently changed its rate
from one per cent to 0.1 per cent. In hardware, Delhi
has a 4 per cent rate but Punjab has 12.5 per cent.
Khandelwal also criticised the government for its failure
to bring dealers within the VAT network. The revenue department
dealers with a fine of Rs10,000 even if there is any error
in VAT returns. This only needed rectification and did
not call for a fine, he said.