New TIN Number Applicable In Telangana From June 2

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 the commissioner of the Commercial Taxes department, Heeralal Samariya, on Issues arising out of Re-Organization of the State of Andhra Pradesh - Pertaining to Commercial Taxes at the Federation House on Tuesday.

FAPCCI senior vice-president Shiv Kumar Rungta, special commissioner (Commercial Taxes) Christina Z Chongthu, and other senior officials interacted with the peope from the trade and industry sections.

While interacting with the traders, Heeralal Samariya announced that from June 2, 2014, a new TIN number will be applicable for Telangana. The traders must use separate TIN numbers for both the states, when they are filing tax returns, announced Samariya.

The taxes will be applicable according to the business operations in the states. The tax revenues can be shared by both the states. While 53% of the tax revenue will go to Telangana, 47% will be for the residuary state of Andhra Pradesh.

Any dispute or grievances that might arise at the time of returns filing can be sent to the concerned authorities who will try to solve the problems within 24 hours.

Shiv Kumar Rungta raised a few issues related to the state's bifurcation during his welcome address.

He said that the trade and industry section cannot comprehend the ramifications of the changes that are bound to happen upon the state's bifurcation.

In fact, a large number of issues pertaining to inter-state trade have to be sorted out, according to Rungta, a sample which are mentioned below.

(1) Tax incentive, in the form of tax deferment, has been sanctioned to several new/expanding industries. Such deferred tax has to be repaid in 14 years. Both the governments have to make it clear as to which state the deferred tax has to be remitted to, in order to avoid unwanted litigation.

(2) At present, entry tax is levied on the entry of motor vehicles into the composite state. After the bifurcation, it will be necessary to make statutory amendments regarding entry tax on the entry of motor vehicles from Telangana state into AP and vice-versa.

(3) At present, the dealers in the state are paying 2% CST (Central Sales Tax) under the CST Act. When the state of Andhra Pradesh is bifurcated, the dealers of Telangana as well as those of residuary Andhra will have to pay 2% extra on the existing CST amount, and will have to collect C forms to avail themselves of the concessional rates on CST.

Apart from the abovementioned problems, Rungta also outlined other possible effects of the bifurcation on the state's trade and industry section. (INN)