Writ petitions challenging enhancement of assessment period from 3 to 6 years under Punjab VAT dismissed by High Court

0 comments Saturday, August 8, 2015
The Punjab and Haryana high court on 07.08.2015 dismissed the petitions of more than 150 firms operating in Punjab which had challenged amendment in the VAT (value-added tax) Act, 2005 by the state government in 2013.
As per rough estimates and arguments of the state in the high court, there will be a revenue benefit of more than Rs 100 crore with this order.
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Due date of efiling of Punjab VAT return for Q1 of year 2015-16 extended

0 comments Thursday, July 30, 2015
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE & TAXATION
PUBLIC NOTICE
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Representation on claim of Input Tax Credit on LPG by hotel industry under PVAT Act, 2005

0 comments Saturday, July 25, 2015
 I had prepared a reprsentation on allowance of input tax credit on purchase of LPG to the Hotel Industry. This representation was prepared on behalf of Hotel Industry of Punjab and has already been sent to Dy. Chief Minister of Punjab on 15.05.2015. The Dy. CM Punjab has already forwarded this representation to the Financial Commisasioner Taxation, Punjab for necessary action.

It is worth noting that LPG is a main input tax credit for hotel industry, however, the input tax credit on the purchase of the same is not allowed by the revenue on the basis of section 13(5)(b) of Punjab VAT Act, 2005. The letter of representation is as under:

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Interim stay on section 62(5) of Punjab VAT Act, 2005

0 comments Wednesday, July 8, 2015
The Hon'ble Punjab & Haryana High Court in one of writ petitions challenging the constitutional vires of section 62(5) of Punjab VAT Act, 2005 filed by me has granted interim stay on adopting coercive measures for recovery of 25% pre-deposit as required under the said section for hearing of appeal and also has made an order as to non dismissal of appeal for want of such pre-deposit.

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CBDT's circular on copndonation of delay in filing returns and c/f set off losses

0 comments Thursday, June 11, 2015
The CBDT has issued Circular No. 9/2015 dated 9th June 2015 to deal with the issue of condonation of delay in filing refund claim and claim of carry forward of losses under section 119(2)(b) of the Income-tax Act. The said Circular contains containing comprehensive guidelines on the conditions for condonation and the procedure to be followed tor deciding such matters. 

The most important is that the application for condonation of delay in filing the returns where refund is claimed and for carry forward and set off of losses can now be filed wthin 6 years from the end of the relevant assessment year.

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Demand on account of mismatch of TDS credit cannot be enforced coercively

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No. 275/29/2014-IT-(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Dated New Delhi, the 1st June, 2015
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Punjab VAT-Penalty levied u/s 51 without serving proper notice is illegal

0 comments Thursday, June 4, 2015
The Punjab VAT Tribunal in one of my cases namely Welspun Projects Limited vs State of Punjab Appeal No. 146 of 2014 decided on 27.04.2015, has quashed the penalty levied u/s 51 of Punjab VAT Act, 2005 on the roadside, as the same was levied without serving proper notice and thereby denying reasonable opportunity of being heard to the appellant.
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Punjab Govt levies 11% entry tax on Sugar imported from outside State

0 comments Tuesday, June 2, 2015
In exercise of the powers u/s 4(1) of the newly introduced ordinance The Punjab Trade Commerce and Development Ordinance, 2015, entry tax @ 11% has been levied on Sugar. The notification is dated 01.06.2015 therefore the levy may be presumed to have taken effect from 01.06.2015.
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New entry tax law-The Punjab Development of Trade, Commerce and Industries Ordinance, 2015

0 comments Thursday, May 28, 2015
The Punjab Government has introduced a new entry tax law by the name The Punjab Development of Trade, Commerce and Industries Ordinance, 2015. This ordinance is promuglated w.e.f 05.05.2015. 
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State Government did not have power to legislate Rule 21(8) of Punjab VAT Rules-P&H HC

0 comments Tuesday, May 26, 2015
Punjab & Haryana High Court in the case of The Jalandhar Iron and Steel Merchants Association(Regd), Jalandhar vs State of Punjab has held that the State Government did not have power to legislate Rule 21(8) of Punjab VAT Rules, 2005 before 01.04.2014 so as to restrict ITC on stock of iron and steel goods as existing on the date of reduction of tax on such goods.
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DETC(Admin) exercising power of DETC(Appeals) whether unconstituitional

0 comments Thursday, May 14, 2015
The Excise and Taxation Department vide its notification No. S.O.93/P.A.8/2005/S.3/2013 Dated 16.10.2013 designated all the officers rank of Deputy Excise and Taxation Commissioners of the Department to act as appellate authority u/s 62 of Punjab VAT Act, 2005, which mean that not only DETC(Appeals) but DETC(Admins) have also been authorized to act as appellate authority. Earlier only DETC(Appeals) were designated to act as appellate authority.
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Punjab VAT-No assessment or provisional assessment without the prior approval of ETC

0 comments Thursday, May 7, 2015
Punjab Government has suitably  amended Rule 47 of the Punjab VAT Rules, 2005 whereby no assessment or provisional assessment now can be framed without the prior approval of the Excise and Taxation Commissioner, Punjab.

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Rahat scheme under Punjab VAT extended to all towns

0 comments Friday, March 13, 2015
The Excise and Taxation Department, Punjab has extended the Rahat Scheme earlier notified u/s 8-A of Punjab VAT Act, 2005, to all the retailers who are carrying on business anywhere in Punjab.
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Punjab VAT-Rate of Advance tax on iron and steel enhanced to 3.5%

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PUNJAB GOVT. GAZ. (EXTRA), MARCH I l, 2015 29 (PHGN 20,1936 SAKA) 

PART III 

GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-II BRANCH) 

NOTIFICATION

 The 11th March,20l5 .
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Punjab VAT-Rate of tax on iron and steel enhanced to 3.5%

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Punjab Government has enhanced rate of tax on iron and steel goods as enumerated in clause-iv of Section 14 of Central Sales Tax Act, 1956 except Non-Cenvat paid lron and Steel Scrap from 2.5% to 3.5%. After adding surcharge of 10% u/s 8-B of Punjab VAT Act 2005 the effective rate is now 3.85%.
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Interest earned from Recurring Deposit also subject to TDS

2 comments Monday, March 2, 2015
The Finance Bill, 2015 has proposed to amend section 194-A of Income Tax Act, 1961 so as to levy TDS on recurring deposits as well. It is notable here that earlier TDS was applicable only on the interest earned in Fixed Deposits with the banks. Now interest earned from Recurring deposits will also be subject to TDS.
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Proposed Amendments in TDS/TCS provisions-Budget, 2015

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The Finance Bill, 2015 proposes to rationalize the provisions of TDS and TCS under the IT Act. As such, the key proposals seek to bring parity between the TDS and TCS machinery provisions, resolve the uncertaintysurrounding taxation of interest payments by cooperative banks to members, strengthen TDS provisions relating to salary income and extend reporting requirements under section 195(6) of the IT Act to payments that are not chargeable to income tax.
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Investment in Sukanya Samriddhi account also eligible for deduction u/s 80C

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I. Introduction
In exercise of powers available under Section 80C(2)(viii) of the Income-tax Act, 1961 ("the Act"), the Central Government had notified a scheme known as "SukanyaSamridhi Account Scheme" videNotification No. G.S.R. 863(E) dated 02-12-2014.

Under the scheme, an amount deposited as per the provisions of the scheme was eligible for deduction under section 80C and the interest earned on the scheme was taxable.
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Relaxation from TDS u/s 194C restricted to only small transporters

0 comments Sunday, March 1, 2015
Under the existing provisions of section 194C of the Act payment to contractors is subject to tax deduction at source (TDS) at the rate of 1% in case the payee is an individual or Hindu undivided family and at the rate of 2% in case of other payees if such payment exceeds Rs. 30,000 or aggregate of such payment in a financial year exceeds Rs. 75,000. Prior to 1.10.2009, section 194C of the Act provided for exemption from TDS to an individual transporter who did not own more than two goods carriage at any time during the previous year. Subsequently, Finance (No.2) Act, 2009 substituted section 194C of the Act with effect from 1.10.2009, which inter alia provided for non- deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer. 
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No money above 20000 in cash, in relation to transfer of immovable property

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The existing provisions contained in section 269SS of the Income-tax Act provide that no person shall take from any person any loan or deposit otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, if the amount of such loan or deposit is twenty thousand rupees or more. However, certain exceptions have been provided in the section. Similarly, the existing provisions contained in section 269T of the Income-tax Act provide that any loan or deposit shall not be repaid, otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, by the persons specified in the section if the amount of loan or deposit is twenty thousand rupees or more.
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