MoU focuses on promoting technology among SMBs for maintaining books and filing tax under the soon to be launched GST
Confederation of All India Traders (CAIT) and Bangalore based accounting software firm, Tally Solutions have signed a memorandum of understanding (MoU) to train and educate the non-corporate sector on GST compliance and its seamless adoption.
As per the agreement both CAIT and Tally Solutions will launch a nationwide campaign to help traders across the country understand the impact of GST on their businesses. The first such campaign would be launched in coming month in tier 1 and tier 2 cities, gradually spanning to cover even the smallest hubs.
“This collaboration is with the aim to raise awareness of the procedural compliance under the new taxation system and how traders can embrace technology for easy compliance of GST,” said Praveen Khandelwal, secretary general, CAIT.
Basically, GST is a technology led taxation system with an inbuilt e-compliance fundamental in its design. However, majority of the country’s small and medium sized traders are yet to adopt computerisation for maintaining books and filing tax. In this light, the joint initiative of CAIT and Tally Solutions is likely to help in spreading awareness about GST and adoption of technology for its success, said an official.
“We will educate and train the trading community on implications of the new law on their respective businesses and help members understand the importance of technology adoption in this new era,” said Khandelwal.
Adding to the views of Khandelwal, MD of Tally Solutions, Bharat Goenka, said, “With this partnership, we believe we will be able to reach out to trading community at large and help educate them on the law, its implications, and how they can transition smoothly with the necessary technology tools.”
Explaining about the impact of GST on non-corporate sector and trader community, B C Bhartia, national preaident, CAIT’s, said that the GST taxation system will lead to the merger of excise, service tax, VAT and other taxes under GST, coupled with its e-compliance in totality. “It is all the more necessary to equip the traders and other verticals of non- corporate sector with adequate knowledge about the procedures and compliance formalities under GST,” Bhartia added.
Basically, CAIT is of the view that future mode of business in the country will largely be conducted through electronic payments and with introduction of GST, the tax will be deposited through either credit card/debit card, NEFT or RTGS only. There will be no cash or cheque and tax returns, claiming of input credit, communication between traders and tax department and other incidental activities, all activities will be conducted digitally.
“Therefore, it is imperative that the traders and other sectors adopt technology and understand procedures of compliance. At a time when the government is moving towards e-governance, the businesses cannot remain aloof from technology,” said Bhartia.