Advance tax on five new items levied under Punjab VAT Act, 2005

0 comments Sunday, April 6, 2014
Punjab Government has levied Advance VAT on 5 new items w.e.f 07.03.2014 these items are as follows:
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Further amendments in items taxable at single stage under Punjab VAT

0 comments Tuesday, April 1, 2014
Notification No. S.O. 23/P.A.8/2005/S.8/2014.- Dated 25th March, 2014

Whereas the State Government is satisfied that circumstances exist, which render it necessary to take immediate action in public interest;

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Supreme Court vacated stay on section 62(5) of Punjab VAT Act, 2005

0 comments Friday, March 14, 2014
Supreme Court of India in Amrit Banaspati Company Limited vs State of Punjab WP(c) 69 of 2013 has vacated stay on implementation and operation of section 62(5) of Punjab VAT Act, 2005, which was granted on 31.01.2014.

However the Supreme Court has stated in its order that there  shall not be any coercive steps for recovery of the amount in question. 

The record of proceedings in the said case is available on supreme court website which is made available herebelow for all concerned.
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Representation to Punjab Govt. on restriction of ITC on iron and steel under Punjab VAT

0 comments Thursday, February 27, 2014

I had prepeared representation on behalf of Iron and steel industry in Punjab, which has been filed with the Punjab Government for withdrawl of latest notification dated 01.02.2014 regarding restriction of input tax credit on iron and steel goods to only two stages and also on closing stock as existing on the date of reduction of tax from 4.95% to 2.75% on iron and steel goods.

The representation covers the difficulties faced by the industry due to the above notification and some light has also been thrown on the constitutional validity of amendment covered under the said notification.
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Implications of newly added Rule 21(8) of Punjab VAT Rules, 2005

0 comments Sunday, February 16, 2014
Recently Rule 21(8) of Punjab VAT Rules 2005 was introduced which provided that where some goods as input or output are lying in stock of a taxable person and where rate of tax is reduced from a particular date, then from that date, input tax credit shall be admissible to the taxable person on sale of goods lying in stock or on using the goods as input for manufacturing taxable goods, at the reduced rate.
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Rahat for small traders in small towns-Punjab Small Traders Rahat Scheme, 2014

0 comments Friday, February 14, 2014
Punjab Government u/s 8-A of the Punjab VAT Act, 2005 has legislated Punjab Small Traders Rahat Scheme, 2014. This scheme has been legislated for the retailers of small towns which falls in the Class-II and Class-III categories notified seperately for this purpose.
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Punjab & Haryana High Court also stays section 62(5) of Punjab VAT Act, 2005

0 comments Wednesday, February 12, 2014
Recently Supreme Court in Amrit Banaspati Company Pvt Ltd vs State of Punjab WP(c) No. 69 of 2014 has stayed the implementaion and operation of section 62(5) of Punjab VAT Act, 2005 which provides for pre-deposit of 25% of additional demand before entertainment of any appeal.
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Outstanding creditors cannot be added to income u/s 41(1) even if such creditors are non traceable

0 comments Tuesday, February 11, 2014
 Section 41(1) of the Act would apply in a case where there has been remission or cessation of liability during the year under consideration subject to the conditions contained in the statute being fulfilled. Additionally, such cessation or remission has to be during the previous year relevant to the assessment year under consideration.
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Due date of fiing ITR-V for A.Y. 2009-10,10-11 & 11-12 in refund cases extended to 31.03.2014

Circular No.. 04/2014, Dated : February 10, 2014

Subject – Non-Filing of ITR-V in returns with refund claims-relaxation of time- limit for filing ITR-V and processing of such returns -regarding.
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RAHAT scheme under Punjab VAT to be notified soon for traders of small town

0 comments Sunday, February 9, 2014

Excise and taxation inspectors (ETIs) would not be allowed to check commercial premises of traders in at least 71 towns of Punjab after February 13 as the state excise and taxation department is launching a new scheme under which traders would have an option to pay value added tax (VAT) once a year in proportion to their annual income. 
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Supreme Court stays section 62(5) of Punjab VAT Act, 2005-No need to pre-deposit 25% for filing appeal

0 comments Tuesday, February 4, 2014
In a very important case namely Dishnet Wireless Ltd vs The Commercial Tax Officer SLP No. 37727/2013 and in WP(c) No. 69 of 2014 namely Amrit Banaspati Limited vs State of Punjab Supreme Court has granted stay on the operation and implementation of section 62(5) of Punjab VAT Act, 2005.
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Reduced rate of tax now made applicable from 01.02.2014- stock as on 31.01.2014 to be declared

0 comments Saturday, February 1, 2014
In a public notice issued today on the website of the Department it now has been clarified that reduced rate of tax on iron and steel goods at the rate of 2.5% will now be applicable w.e.f 01.02.2014. 
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VAT on Cigarettes and Cigars in Punjab reduced to 20.5%

PUNJAB GOVT. GAZ. (EXTRA), JANUARY 29, 2014    195

(MAGHA 9, 1935 SAKA)
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VAT on milk and wheat reduced in certain cases under Punjab VAT

Punjab Government has reduced VAT on milk when purchased for manufacturing taxable goods and on wheat when purchased for processing, from 6.05% to 3.3% (after adding surcharge of 10%). Wheat not to be used for processing purpose will continue to attract VAT @ 6.05%. Relevant notification is produced herebelow:
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Rate of tax reduced on iron and steel goods-Rules 21,54 of Punjab VAT Rules amended

0 comments Friday, January 31, 2014
Punjab Government has notified reduced rate of tax on Iron and steel goods as defined u/s 14 (iv) of Central Sales Tax Act, 1961 from 4.5% to 2.5% except on Non-CENVAT paid scrap. 
Non-CENVAT paid scrap has been made taxable at the rate of 1% only. This change has been made effective from 25.01.2014.

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Punjab reduces VAT on cigarettes, iron and steel

0 comments Tuesday, January 21, 2014
Having hiked the value added tax (VAT) on cigarettes last year to curb sales, the Punjab cabinet Monday decided to reverse the decision and reduced the tax on them.

Under the proposal approved by the cabinet at its meeting held here Monday with Chief Minister Parkash Singh Badal in the chair, VAT on cigarettes was reduced from 50 to 20.5 percent.
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Input Tax Credit is a concession granted by legislature, must be strictly construed

0 comments Sunday, January 5, 2014
Madras High Court in a very important case namely USA Agencies vs The Commercial Tax Officer has held that input tax credit under system of VAT is merely a concession granted by the Legislature under the sales tax law, therefore the provisions relating to such concession must be strictly construed. In this Judgement the Madras High Court very well explained the concept of input tax credit and also the scheme of the VAT system.
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Tax treatment of stock of goods as on 31.12.2013 taxable at first stage under Punjab VAT

0 comments Saturday, January 4, 2014
As we all know single stage taxation has been introduced on certain items under the Punjab VAT Act, 2005, whereby the goods notified for such purpose will be taxed at the first stage of their sale in Punjab and thereafter at all subsequent stages such goods will be sold as tax free. This system is applicable from 01.01.2014.

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Clarifications Regarding Single Stage Taxation by Excise and Taxation Department

0 comments Monday, December 30, 2013

Reference Notification No. S.O.116/P.A8/2005/S.8/2005/S.8/2013 and NO S.O 117/P.A.8/2005/S.8/2013 dated 13th December, 2013

In light of the above notifications we are receiving queries from various dealers and lawyers. In response to this, following clarifications are being issued:
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Punjab Voluntary Disclosure of Value Added Tax Scheme, 2013

0 comments Friday, December 27, 2013

Dated: 20th December, 2013

Whereas with a view to bring in greater transparency in the discharge of tax liabilities by a taxable person under the Punjab Value Added Tax Act, 2005 (Punjab Act No.8 of 2005), it is considered necessary so to do, now, therefore, in exercise of the powers conferred by section 29-A of the aforesaid Act and all other powers enabling him in this behalf, the Governor of Punjab is pleased to notify the scheme for settlement of unpaid tax, namely:-
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