CMDA Delhi unhappy with online VAT payment

Following the net banking arrangements, for payment of value added taxes (VAT) collected on behalf of Delhi government, the online mode of payment of VAT has not gone down well with the IT traders and Delhi based Computer Media Dealers Association (CMDA).

The association recently made representations to the commissioner of VAT, P Goel, for immediate intervention on the problems regarding deposit of VAT. The association feels most of the IT traders are not computer savvy and think that they will have to hire an accountant for keeping their books.

"VAT is one of the major reasons because of which most traders, especially the small ones, are suffering the most. Making VAT collection online is an unfriendly move, especially for small traders, who cannot afford to hire accountants only to work on the books. Most of them manage the accounts themselves. There are many who are not well versed with computers, leave alone net banking," said Puneet Singhal, president, CMDA. He suggested that there should be an option available for traders to deposit taxes either online or in the banks.

Manoj Khanna, secretary, CMDA said, "We have made very rational demands regarding VAT payment and submitted an application to the department. Our request to the government is apart from the existing systems, simultaneously, the payment of VAT may be accepted by cheque/ demand draft /cash/ RTGS or through an agent with nominal charges, as banks are not cooperating with us while making online payments."

In the application, CMDA highlighted difficulties in completely switching over to the online payment. According to the association the net banking system is not preferred by a majority of traders because of security reasons like misuse of password, hacking etc, due to lack of full-proof security in this systems.

The association has 100 members, most of whom are small traders and find it difficult to adapt to the online mode of tax payment system.