After the government decided to impose Value-added Tax in Jammu and Kashmir, business-driven people are left with no other option but to carry out their business in an ethical way.
Partners residing in nearby states observed jump in business after Vat imposed at the rate 5 % on computers/computer peripherals and uniform tax rate of VAT of 13.5 % on inverters and UPS in Jammu. Reason being VAT rate of both the states reached at same level.
As per sources, some of the partners of states such as Punjab, Himachal Pradesh, etc. opened their commercial spaces in Jammu to grab benefit of 0% Vat and started billing interstate at varied prices earlier. This practice on other hand brought dropdown for partners who were transparently practicing business transactions.
Sandeep Sethi of Vast computers, Punjab stated, “Change in vat rate of Jammu has shaped our business once again. It was an urgent need for partners like us who vision long term business survival.”
Since introduction of VAT, partners got justification with their ethical business practices and added good numbers to their business volumes. Although, earlier VAT rate was implemented with a motive to uplift different verticals of Jammu but that turned out to be creating critical mess.
“We have got relief from the price challenge we were facing earlier. This step of government broke down unpractical business models” added Rajiv Khanna of ITPRO.
When VAT was not imposed in Punjab it was hitting market badly. Partners faced around 50% to 60% down in business. “We are now expecting that our business volumes will now able to cross the turnovers as earlier. We are now again able to do good business and provide satisfaction to our esteemed customers,” explained Gurpreet Singh of Premier computers, Ludhiana.
Gurpreet Singh, media spokesperson of PACT described his happiness saying that Punjab IT partners now will be able to take step towards business that will help industry to prosper.
On the other hand, partners from Jammu have expressed their disappointment on the decision of government of imposing tax in the state. According to Sanjay Gupta of Infotek, Jammu, “Earlier, when VAT was not imposed into the state, few people used to carry out their business in an unethical manner which was in one way or the other was affecting business on the whole. We are not against VAT but we are of the view that there should be uniformity in VAT all across the nation. This will create transparency in business model."