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Samiksha 2006 Panel Discussion on "VAT & Its Implications on Indian Inc." Held at NITIE, Mumbai Mr. Sant Kumar Verma, Head - Taxation, Bayer Cropscience Ltd., explained in lucid terms VAT as a concept and what its practical implications would be on industrial transactions with examples that gave some food for thought to the students aiming to be tomorrow's logisticians and procurement managers. He also explained the different slabs of VAT structure and their implications on manufacturing industries. "It was really great to be a part of such a successful event," he said to describe the event. Mr. S. M. Kulkarni, Corporate Head - Sales Tax, Mahindra & Mahindra, enthralled the audience with his lucent lecture on the basics elements of VAT. He explained about the various scenarios that today's supply chain students would face as tomorrow's supply chain and purchase mangers. Through simple examples, he helped the student community of NITIE and other B-schools as well as other industrial delegates, comprehend the various techniques like outsourcing, vendor management, etc., can help to reduce costs. Ms. Renu Narvekar, Head - Finance, P&G Ltd., explemplified the VAT issues with reference to FMCG sector. She enlightened the audience on how VAT would be eliminating multiple taxation, increase government revenues bringing dealers and retailers also into the tax bracket. It will ensure greater transparency since it is easier to comprehend and lay a road map towards a unified national VAT regime. She said, however, that VAT puts FMCG companies in a spot of bother regarding decisions on who should bear the brunt of the additional tax which the distributors and retailers are forced to pay. She further went on to delineate the affects of VAT on sourcing, logistics, systems and record keeping, ERP, customers and packaging regulations with reference to the FMCG Industry. Mr. Vivek Bhimankar, Deputy Commissioner, Sales Tax, enlightened on various aspects of Post VAT scenario. He gave a whole new dimension to the event by elaborating on the need for VAT in the Indian economy. He said that with the signing of the WTO treaty and liberalization, the Indian industry needed to be forced to become more competitive. As states engaged in a rat race of tax concessions to attract industrial investment, the state treasuries became bankrupt and the need for a uniform tax regime was felt. Thus VAT was born. He highlighted, "Earlier, tax system rewarded dishonesty. Now there is an incentive for being honest. VAT has not only refilled the treasuries but has also ensured better social life by decreasing the corruption levels."
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