Bangalore District Chemists & Druggists Association (BDC&DA) has made efforts to move from manual filing of value added tax to e:filing mode adhering to the new form, VAT 105, which has been specifically introduced by the Commercial Tax Department, Government of Karnataka.

The new rule is for all dealers who pay VAT on maximum retail price on medicinal and pharmaceutical preparations as well as on all other commodities dealt by the Chemists & Druggists.

The ceiling price and MRP on medicinal and pharmaceutical preparations have been fixed by the Central Agency which included the element of excise duty as well as VAT paid.

In order to update its members on the new filing methodology, the BDC&DA conducted a Workshop cum-Seminar on E-Filing on Form VAT 105.

This effort was to keep the pharmacy trade members in sync with new methods of e:filing. “Our endeavour has always been to update our members on any new legislation or amendments in the law concerning trade practices. Around 1,600 chemists from all over Bangalore City as well as from the peripheral areas attended the Workshop,” V Hari Krishnan, president BDCDA told Pharmabiz.

“The medicinal & pharmaceutical preparations are price controlled and governed by Central legislation unlike other commodities where the prices can be fixed by the manufacturers. With the advent of VAT in 2005, Association had advocated for the payment of VAT on all medicinal & pharmaceutical preparations on MRP basis at the first point of sale. Thereby the compliance of the tax from the trade was covered 100 per cent to the exchequer, he added.

“Since we are moving towards a new era of taxation in India which is the Goods & Service Taxes (GST) which is likely to be introduced in the coming fiscal year, the education and awareness is crucial. The workshop-cum-seminar will acclimatize the members about the e-filing of future returns in VAT as well as GST era. We undertook this exercise with the help of Commercial Tax Department,” stated Krishnan.

Pradeep Singh Karola, commissioner, Commercial Tax Department, Govt. of Karnataka while briefing on the finer points of E-Filing as well as on the introduction of Form VAT 105, stated that e:filing was a necessity as far as the VAT laws were concerned for practical data purposes.

He lauded BDC&DA’s efforts to update its members on the E-filing as well as Form VAT 105 which has been specifically introduced by the Karnataka government for all dealers who pay VAT on Maximum Retail Price.

According to Arun Mehta, administrative secretary, BDC&DA, the e:filing is in tune with the current times of information technology infrastructure. We are now moving from manual to e:filing mode. There would be dealers with lack of the infrastructure to file. The Commissioner of Tax has also assured if the BDC&DA members face any difficulty in filling up the Forms, they could approach Local VAT Office for assistance.

Biradar, Asst. Commissioner, Karnataka Commercial Taxes, highlighted that the E-filing and E-Payment would be simple and economical thus saving time and resources.