Team Goemkarponn
PANAJI: To avoid more taxes on incentives and discounts that booze merchants receive, the Goa Chamber of Commerce and Industry (GCCI) has urged the government to alter the Goa VAT law.
Rohan Bhandare, the chair of the GCCI Taxation Committee, expressed concerns about the Tax Department’s interpretation of the legislation in a letter to the State Commissioner for Commercial Taxes.
According to Bhandare, booze dealers buy products from vendors and claim a credit for input taxes on the taxes they pay. Suppliers frequently provide discounts or incentives, including cash refunds or sales promotions.
“The Tax Department has reversed input tax credits from liquor dealers’ balances and demanded interest on these amounts because it believes that these incentives are taxable in their hands,” Bhandare said.
Since dealers have already paid VAT on the entire invoice amount at the time of purchase, Bhandare claims that taxing incentives essentially results in double taxation.
