Provisions of Section 269SS and 269T under Income Tax Act

39 comments Sunday, March 28, 2010
Finance is the important part and need of every business. The own capital of a person may not be always sufficient to meet the needs of finance of the business. Therefore the Loans and deposits become necessary and important to meet the financial needs of the business. But while taking loans and accepting deposits one also has to keep in mind the restrictions imposed under the Income Tax Act on the mode of taking such loans and deposits.

Such provisions regulating the mode of accepting or taking loans or deposits and mode of repayment of certain loans and deposits are contained under section 269SS and 269T of the Income Tax Act 1961.
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Input Tax Credit on goods purchased under the PVAT Act is admissible only upto the fourth stage of its Purchase

0 comments Monday, March 22, 2010
The Punjab VAT Rules have been ammended to provide for that the input tax credit on purchase of goods from manufacturer or importer will be available to a dealer only upto the fourth stage of its purchase. The dealers will also have to mention on the bills that on which stage he is selling the goods. VAT form 23 and 24 has also been ammended to this effect.

The relevent notification is reproduced herebelow for ready reference:
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The VAT Forms under PVAT Act been updated

0 comments Sunday, March 21, 2010
The VAT forms i.e VAT 15 form has been updated in view of the change in the rate in the PVAT Act on schedule B goods from 4% to 5% and additional surcharge levied @ 10%. The next quatorly VAT Return under the PVAT Act 2005 is due to be filed in the next month of april.

All the software companies dealing in VAT E filling softwares and the dealers, C.As and Lawyers practising PVAT Act and accountants have been waiting for the changes in the VAT return forms in view of the increase in VAT rate from 4% to 5% on schedule B goods and the surcharge levied @ 10% under the PVAT Act 2005. The relevent important changes made in the worksheet of VAT form 15 regarding the changed rate and surcharge is as follows:
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Precondition of Deposit of 25% of tax penalty interest u/s 62(5) of PVAT Act 2005 not neccessary where the goods are detained by the Department

0 comments Tuesday, March 16, 2010
Section 62(5) of the PVAT Act 2005 provides for the precondition of deposit of 25% of total amount of tax, penalty and interest , if any before entertaining any appeal. Such condition was also imposed evan on those appealent whose entire goods are detained by the department u/s 51 evan if the value of such detained goods exceed the total amount of tax, penality, interest. In such cases it results in burdening the assessee with another liability.

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