Taxation dept fails to collect VAT
Source: Hueiyen News Service

Imphal, June 06 2011: As the state taxation department failed to collect VAT from the authorized dealers and agencies of two wheeler vehicles under the Manipur Value Added Tax Act, state revenue department is losing a huge amount of its annual revenue.

As per the guideline of the Act, registered dealers should pay 13.5 percent of the total sales amount of two wheelers as VAT to the state government.

However the state government is unable to collect VAT for Honda vehicles like Activa, Dio and Access since there is no registered dealer of the company in the state.

Even though there is no registered dealer, private shops sell the vehicles in the state without any legal clearances.

Such shops bring the vehicles from registered dealers in Guwahati under fake names and bring them to the state either by trucks or by driving them upto Imphal.

Check posts along the highway are unable to collect any taxes since the people who bring the vehicles have proper documents for personal use of the vehicles.

Apart from the registered dealers of Bajaj, Maruti and Hyundai companies, no other dealer in the state pay any VAT to the state government.

Meanwhile, officials of the state taxation department are unable to prevent the illegal sales of Honda vehicles in the state since they fear of action from the sellers if they take up any legal actions against them, said a highly reliable source.

All government employees and other professionals are required to pay professional tax to the government under the Manipur Professional Trade Callings and Employment Tax Act 1981 .

However almost all professionals do not pay taxes to the government that is except for the government employees, doctors and contractors.

A person with an annual income of ' 15000 to 30000 is required to pay ' 200 as annual tax while it is ' 450 for persons with an annual income of ' 30000 to 40000, ' 750 for persons with an annual income of ' 40000 to 50000, ' 900 for persons with an annual income of ' 50000 to 60000 and upto ' 2500 for an annual income above ' 1.25 lakh under the Act.

Government is considering to increase the tax amount since the present rate is outdated, said the source.

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