Saturday, November 30, 2013


DATED..29.11.13 TO, SRI AJAY JI SETH HON'BLE COMMISSIONER, COMMERCIAL TAXES DEPARTMENT, GANDHI NAGAR,BANGALORE KARNATAKA SUB.. MINOR LAPSES IN E-SUGAM OR M-SUGAM RESPECTED SIR, Season's greetings from the members of Karnataka Hosiery and Garments Association.. This has reference to the implementation of E-Sugam on various commodities (specifically Ready -Made Garments) with effect from November 1, 2013. Further, we refer to your circular as per which the ‘educative period’ has been extended to November 30, 2012. At the outset, we thank you and appreciate the extension given to the ‘educative period’. This was a much required extension for the Trade and Industry. You may appreciate that, we at our end have already initiated specific measure to prepare the dealers for a smooth implementation of E-Sugam. Necessary training is also being given and the dealers are being educated on the approach to comply with the E-Sugam procedure. We also thank you for the training extended by the Commercial Tax Office to the dealers in understanding the nuances of the E-Sugam Procedure. Sir, we request you to please adopt a lenient view till the dealers are completely able to understand the E-Sugam ,Procedure. Imposition of penalties on each and every default may hinder the relationship between the dealers and the commercial tax office. With the implementation of E-Sugam, each and every dealer is now expected to comply with the statutory norms and ensure that accountability is afforded for every transaction relating to purchase, sale and every other movement of goods. This is also further enable the dealers to remit the applicable taxes to the account of the Revenue and consequentially will result in deposit of all applicable dues under the local VAT law. We believe that this measure would help to bridge the complete gap between the Trade and the Commercial Tax Office and also lead to compliance with law as a whole. If the lenient view is taken and minor lapses are ignored, then the Traders and Dealers may be benefited as they make their progress to ensure all compliance. Therefore, it is a humble and sincere request that the commercial tax department may be instructed to ignore small procedural lapses as long the accountability to goods is completely given. If you feel so, then this lenient view may be issued to the check posts and other concerned tax offices. This final step may help the dealers with unnecessary penalties on minor lapses. Your good -self may appreciate that Revenue would surely increase as the accountability and compliance with goods is also going to increase. But levy of penalty on minor lapses may not increase the revenue but could unnecessarily hinder the compliance which has now moved a step ahead by way of E-Sugam Implementation. Awaiting for your kind response SIR.... WITH KINDEST REGARDS Thanking You, Yours Faithfully SAJJAN RAJ MEHTA CHAIRMAN ..TAXATION.. khaga

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