Dear Members,

While we eagerly await the last day of the current month for the Union Budget, the desired uniformity under Value Added Tax System, throughout the length and the breadth of the country is yet to be achieved. All the States except UP have their own law with varied and different provisions. Such a diversity is more glaring in regard to the provisions relating to the statutory audit. In some States the audit is entrusted to all classes of practitioners, while in other, the same is restricted only to one class thereof. This situation have yielded unexpected hardships to the excluded class of practitioners who are affected to such an extent that some of the practitioners practising the sales tax law since last several years are facing difficulties striving for their survival.

In the past, we have approached the State of Maharashtra to take sympathetic attitude and favourably consider the problem so faced by large number of practitioners. Even after approaching the Hon'ble Bombay High Court, we renewed our request in that regard. We are anxiously awaiting the final decision on such representation. It is incorrect to carry an impression that the competency to certify against the tax evasion vests only with one favoured class of professionals at the cost of remaining larger number of professionals. I am sure similar situation must be prevailing in other States also where such a narrower attitude have been adopted in regard to the submission of the statutory audit report. It is needless to mention here that the provisions regarding the accounts, under the VAT Act all over, similar to section 63 of MVAT Act provide for maintenance of true account of the value of the goods sold or purchased by an assessee. That can be very well accomplished by maintaining copies of tax invoices, cash memo or bill for the sales and purchases effected and supported by the entries in cash book, ledger and maintenance of sale and purchase register. Such a work can very well be done by a commerce graduate. It is worth noticing that maintenance of such accounts and records do not require compliance of any accounting standard.

In such a scenario, it seems to be a wishful thinking in some quarters of the tax administrators who even today believe that overnight the parallel economy prevailing in the society would vanish, if the books of accounts were to be audited by the chosen class of practitioners.

I hope instead of making such a vital issue to be a prestige issue, a favourable attitude be taken so as to restore peace and tranquillity in the entire State.

Now, referring to the activities of the Association, I am happy to place on record that on 17th and 18th February, 2007 for the first time the flag of the Association was hoisted in the Konkan region. A seminar jointly with 'Ratnagiri Tax Practitioners Association' at Chiplun and another one with the help of 'Tax and Other Practitioners Association' of Sindhudurg was arranged at Kudal. At both the places the participants welcomed such events. On the spot, the demand was raised from the audience that such meetings be arranged at regular intervals.

We all professionals, many times, face problems with our employees. In order to post ourself with the information in regard to labour laws a Study Circle was arranged on 8th February, 2007 when Shri K. S. Desai leading advocate addressed the gathering. Yet another Study Circle meeting was arranged on 22nd February when Shri D. V. Shintre addressed the members on certain practical aspects in regard to 'Refund and Set-off' under MVAT.

Before I sign this message, I would like to share one good news with all of you, which will, I am sure, give respite to all the professionals and dealers alike.

The Hon'ble Bombay High Court has further extended the last date of submission of Audit Report in Form No. 704 from 31st March, 2007 to
30th April, 2007, as the Department has requested for an adjournment in the matter.

The next date of hearing of the Writ Petition is fixed on 23rd March, 2007.

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