Input Tax Credit on goods purchased under the PVAT Act is admissible only upto the fourth stage of its Purchase

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:



GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE AND TAXATION
(EXCISE AND TAXATION-II BRANCH)
Notification
The 17th March, 2010
No.________________________________.- In exercise of the powers conferred by sub-section (1) of section 70 read with sub-section (1) of section 13 of the Punjab Value Added Tax Act, 2005 (Punjab Act No. 8 of 2005), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to make the following rules further to amend the Punjab Value Added Tax Rules, 2005, namely :-
RULES
1. (1) These rules may be called the Punjab Value Added Tax (_______Amendment) Rules, 2010.
(2) They shall come into force on and with effect from the date of their publication in the Official Gazette,
2. In the Punjab Value Added Tax Rules, 2005 (hereinafter referred to as the said rules), in rule 21, after sub-rule (6), the following shall be inserted, namely:-
“(7) A taxable person shall be entitled to claim input tax credit in respect of purchase of goods, made by the first, second, third and fourth taxable persons only, from a manufacturer or importer of such goods in the State of Punjab.”
3. In the said rules, in rule 54, in sub-rule (4), after clause (1), the following clause shall be added, namely:-
“(m) stages of purchase, namely:-
(i) first stage;
(ii) second stage;
(iii) third stage; and
(iv) fourth stage.”
4. In the said rules, for the existing Form VAT-23 and Form VAT-24, the following Forms shall be substituted, namely:-
“ FORM VAT-23
[See rule 42]
LIST OF SALES
Name:
Address:
TIN No:
Tax Period:
From:
/
/
2
0
To:
/
/
2
0
Customer wise detail of Sales (within State)
Serial No.
TIN No.
Name and address of Purchaser
VAT Invoice No. and Date
Net Value of Goods
Name of commodity
Indicate the Status of Sale as 1st, 2nd, 3rd or 4th stage supplier
Indicate rate of tax / Exempted-due to H Form or exempted unit sale
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
9
10
Date:
/
/
2
0
SIGNATURE and SEAL
OF THE AUTHORISED PERSON
‘ FORM VAT-24
[See rule 42]
LIST OF PURCHASES
Name:
Address:
TIN No:
Tax Period:
From:
/
/
2
0
To:
/
/
2
0
Supplier wise detail of Purchases (within State)
Serial No.
TIN No.
Name and address of Supplier
VAT Invoice No. and Date
Net Value of Goods
Name of commodity
Indicate the Status of supplier as 1st, 2nd, 3rd or 4th stage supplier
Indicate rate of tax / Exempted- due to H Form or exempted unit Purchase
Purchases from other than taxable person
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
10
Date:
/
/
2
0
SIGNATURE and SEAL
OF THE AUTHORISED PERSON
SHIVINDER SINGH BRAR,
Financial Commissioner Taxation and
Secretary to Government of Punjab,
Department of Excise and Taxation.
Posted by AMIT BAJAJ ADVOCATE at 9:51 PM

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