Some improvements to the Indian VAT compliance and administration procedures have been announced to help traders. India’s VAT is a state level tax on the sale of goods. The changes include plans to reduce the number of Indian VAT audits, the withdrawal of the lengthy annual Audit Report filing and a potential higher exemption from VAT for the smallest of traders. The higher threshold for traders registering for VAT would relieve many small traders of the compliance burden of administering VAT.
There are plans to generally reform the complex, and overlapping Indian consumption tax regime. The plan is to introduce a new Goods and Services Tax, replacing VAT, CENVAT, Service Tax CST and Professional Tax. The latest indication is that GST will be introduced after the 2014 Indian elections.
