e-Filing of taxes to be compulsory in Kerala

The pre-budget session between the finance ministry and traders association
in Kerala came as a relief for IT traders who could get their tax issues
clarified. Thomas Isaac, Finance Minister; Paul Antony, Chief
Commissioner-Taxes, Kerala; and other senior sales tax officials participated in
a discussion with trade members and PK Harikrishnan, President, MITDA
represented the IT traders association.

At the meeting, traders suggested the creation of a sales tax ombudsman for
addressing various issues on sales tax even as the finance minister asked the
traders not to request for any tax reductions. Partners were confused about the
e-filing of sales tax returns and several traders objected to finance minister's
decision to make e-filing compulsory.

“Many traders didn't have a proper idea on the e-filing. However, the finance
minister made it clear that e-filing is compulsory for dealers who pay more than
Rs 25,000 per month as output sales tax and for those, who make 80 percent of
the sales to other traders and whose turnover exceeds Rs 50 lakh in a year,”
Harikrishnan informed. He added that the e-filing move was a good one although
it would be effective only if there is computerization at all levels.

The finance minister also suggested maintenance of the check-post operations
so that it would be helpful for recording e-filing. “This is a move to keep
track of the goods entering the state from various other states and ensure that
no malpractices are done during the e-filing. We also requested that check-post
operations be made transparent so that we too can be aware of the amount of tax
other traders pay for their goods and we needn't pay excess amount,”
Harikrishnan claimed.

When contacted, few partners who were likely to do a compulsory e-filing felt
that this method of filing the sales tax is more preferable. Eldho Areeckal, GM,
Aldous Glare said, “The e-filing will make our work more simple as we can file
the returns from our office and need not waste our time.”

MP Sampath Kumar, CEO, Positive Systems, Cochin too echoed his view.
“E-filing is a very good and convenient option because there will be accuracy in
the payment and we can be vigilant as the records cannot not be destroyed or
changed,” he asserted.

He also felt that the compulsory e-filing is a healthy process and it could
be a good solution for the sales tax problems as it could avoid unnecessary
harassments due to delayed sales tax payment.