PANAJI
Besides, different licenses have to be renewed at different points in time, which makes things even more difficult for auto dealers.
“While the trade licence needs to be renewed every year, the VAT registration needs renewal every three years. The no objection certificate (NOC) of Goa State Pollution Control Board (GSPCB) is up for renewal every two years. The licence from the department of factories & boilers needs to be renewed every three years, while auto dealers need to file returns every six months with the same department. The NOC from fire department needs renewal every two years,” informed the secretary of the Goa Automobile Dealers Association, Vallabh Kunkolienkar.
Instead of leapfrogging, the business of auto dealers proceeds at somewhat laggardly pace, as Kunkolienkar further explained, “One man is needed to keep track of all these formalities. For instance, six monthly returns to be filed with the GSPCB also include matters such as disposal of old batteries, cotton waste and how water used for washing the vehicles is discharged.”
Over the years, the number of departments that auto dealers have to approach to get approvals has only increased. Earlier, auto dealers were not required to get a NOC from GSPCB and also no registration with department of factories & boilers was necessary.
Auto dealers are categorised under manufacturing category, while they are more of a trading business, which also makes things complicated for them.
Parind Nachinolkar, managing director, Group Priority (dealers of Renault), said, “Gujarat has already implemented single window clearance system. Implementation of the same will help in Goa too. Investment Promotion Board (IPB) only gives assistance and does not go all hog in delivering 100 per cent.”
Auto-dealers are pinning hopes on the implementation of Goods and Services Tax (GST) in April 2017 to simplify the system and also lower the tax burden. “GST will lead to abolition of sales tax and VAT which accounts 22 to 24 per cent of the tax component”, informed Kunkolienkar.
“Currently, VAT is levied in addition to central excise while road tax is also levied by the state government. So, there is multiple taxation. Hence, with a single tax, automobile prices will come down, provided the state government refrains from hiking road tax under the pretext of controlling vehicle population”, added Nachinolkar.
Evencio Quadros, chairman and managing director, Quadros Group, said, “The process of inspection of vehicles by RTOs should be eliminated. Fitness of vehicles is not needed at all because they are already new. However, in case the government wants it, then dealers must be permitted to endorse fitness of vehicles.”
