Tax & Accounting Blog

Good Taxpayer, Get a Reward…

Blog, Indirect Tax, ONESOURCE June 15, 2016

Delhi’s Commercial Tax Office released an order creating a “Reward/Appreciation Scheme” for Good dealers. In India, state level value added tax provides a considerable amount of revenue, in the case of the National Capital Territory it provides 65% of the total collections. The value added tax is most commonly paid by retailers of goods where there it can be difficult to accurately track, calculate and record the VAT.

The as of yet unnamed scheme wants to give rewards to dealers in different slabs for either highest tax paid or highest growth.

  • New entrepreneur who got registered in 2015-16 and paid the highest tax during that year
  • Dealer having turnover upto 50 lakh and paid highest tax during 2015-16
  • Dealer having turnover upto 50 Lakh and gave the highest growth In comparison to 2014-15.
  • Dealer having turnover above Rs. 50 Lac upto 5 Crore and paid the highest tax during 201516
  • Dealer having turnover above Rs. 50 lac upto 5 Crore and gave the highest growth in comparison to 2014-15
  • Dealer having turnover above 5 Crore upto 50 Crore and paid the highest tax during 2015-16
  • Dealer having turnover above 5 crore upto 50 Crore and gave the highest growth in comparison to 2014-15
  • Dealer having turnover above 50 Crore upto 500 Crore and paid the highest tax during 2015-16
  • Dealer having turnover above 50 Crore upto 500 Crore and gave the highest growth in comparison to 2014-15
  • Dealer having turnover above 500 Crore and paid the highest tax during 2015-16
  • Dealer having turnover above 500 Crore and gave the highest growth in comparison to 2014-15

The last part of the order leaves what exactly the reward will be up to the contest organizer.

In other countries, there have been VAT lotteries which give incentives to consumers to request VAT invoices. The act of requesting a VAT invoice forces a merchant to go through a different process which will create additional records.

Hopefully soon the content will have a name and encourage more compliance.