Revenue collection through VAT highest; amusement tax collection on the wane


IMPHAL, April 21: The state department of taxes is keeping its target of revenue collection of Rs 25030 lakhs from various taxes during the financial year 2010-11 as the department has already achieved increased revenue collection of Rs.18110.60 lakhs during the financial year 2009-10 as against the target of Rs.16501.50 lakhs.
According to an official source tremendous increase in revenue collection of the state department of taxes during this last five years was due to the enforcement of the Value Added Tax Act, 2004, in the state since July, 1, 2005.
The source further said that revenue collection under VAT is steadily increasing every year and the functioning of VAT system depends on computerization of Tax information Exchange System (TINXSYS). At present the TINXSYS system is not fully operational, and when this system is fully operation the Revenue collection is expected to increase, the source added.
As per the official information received, maximum revenue collection of Rs.16328.19 lakhs was recorded from VAT , Rs. 1763.41 lakhs from Professional Tax and only Rs.19 lakhs from Amusement Tax in the state during the year 2009-10, besides there is a steady increase in the collection of revenue from VAT during the year 2010-11 (Upto February 2011) as Rs.8822.68 lakhs were recorded collected as revenue from VAT and there is record of gradual decreasing in revenue collection from both Professional as well as Amusement taxes during the year 2010-11 with a recorded collection of revenue of Rs.165.58 lakhs and Rs.7.53 lakhs respectively from Professional and Amusement taxes.
It may be mentioned that, apart from the VAT Act, 2004, for the purpose of collecting revenue in the form of taxes the department of taxes administers various acts and rules which includes, the Central Sales Tax Act, 1956 and Rules frame there under, as this act formulate the principles of determining taxes on sales or purchase of goods taking place in or outside the state in the course of inter-state trade and Commerce, and in the course of import and export out of the country.
It imposes tax on inter-state sales, prescribes the rate thereof and realized only by a trader or dealer registered under this Act against Form “C” prescribed under the Act. By a recent amendment of CST Act, 1956 the CST rate of Tax is reduced to 3% from 4% with effect from April 1, 2007 and 2% from 3% with effect from June1, 2008.
The Manipur Profession, Trades, Callings & Employments Taxation Act, 1981 , under this Act, every person engaged in a profession or occupation within the state of Manipur and whose annual income touches the taxable limit, is liable to pay professional tax according to the rates specified against the taxable slabs of annual income, Assam Amusement & Betting Tax Act, 1993 (as extended to Manipur), Amusement tax collected from Cinema Hall / Video parlours and other forms of entertainment is collected under this Act.
Tax collection in this area is done in the form of Amusement Stamps affixed on tickets and the Manipur Tax on Luxury (Hotel & Lodging houses) Act, 2000. This Act came into force on October 1, 2001. Under this act tax is collected on the room rent charges and catering services of the hotels according to the prescribed schedule in the Act.
The official source further said, for the proper streamlining of VAT in the state the Tata Consultancy Service (TCS) has been entrusted by the union government to provide necessary infrastructure like software, networking and staff training, etc. for the implementation of VAT & Central Sales Tax Management System (VCMS) in Manipur.
It is also mentioned that VCMS application, which is undertaken by Tata Consultancy Service (TCS) for computerization of the department, has expired on March this year and a new VAT software application has been replaced it which has been undertaken jointly by NIC, Karnataka and NIC Imphal, from April 1 under the Mission Mode Project of Commercial Tax Department (MMP-CT) with an outlay of Rs.6.16 crores.
A steering committee headed by commissioner (Finance) Government of Manipur is implementing the project and is targeted to complete by next year, the official source added.
The official source further mentioned that, in order to check and verify the movement of goods brought into and moving out of the state and to streamline the collection of taxes four taxation check posts are maintained at Moreh, Jiribam, Pallel and Hengbung, besides these the department also maintained a Taxation out post at Churachandpur district head quarter which has been covering the whole parts of Churachandpur district.
On the other hand two composite check posts are also proposed to be opened at Taphou along the National Highway 39 in Senapati district and at Jiribam along NH-53 with funding from NLCPR. Sites have been identified and land acquisition proceedings for both the CC Posts have been started, the source added.
The source also mentioned that in order to accelerate the revenue collection for the state in the forms of taxes, after successful implementation of state level VAT, the union government and the state has agreed to further levy tax on Goods and Services (GST) at the central and state level. GST is likely to be introduced in the state within this month the source added.


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