Meaning of Turnover or sales for the purpose of Tax Audit

0 comments Monday, May 31, 2010
A person is required to get his accounts audited u/s 44AB if
1)The turnover of  business exceeds Rs 60 Lakhs, or
2)The Gross Receipts of Profession exceed Rs 15 Lakhs.

In case of business what should be the meaning of turnover/sales? Should it be Gross sales or net sales? Should it include VAT, Sales tax or excise duty? The meaning of turnover/sales for the purpose of tax audit is dissussed as follows:

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0 comments Sunday, May 30, 2010
Assessment under the Punjab VAT Act 2005 are made u/s 29. The assessment under Punjab VAT Act is made after the filing of the VAT 20 i.e annual return except in the case of Provisional Assessment. The assessment of Tax under section 29 of Punjab VAT Act 2005 can be done by two ways which can be discussed as follows:

Assessment on the basis of return filed by the dealer: Assessment  may  be  framed  on  the  basis  of  the  return or  returns  filed  by  the  taxable  persons u/s 29(1) . Where  the  return  is filed under  Sec.26 the  assessing  officer  under  Rule  43   scrutinizies  the  same and proceed to make assessment  under  Sec. 29(1) of the Act. Section 29(1) of Punjab VAT Act 2005 runs as under:
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Rule 36 of Punjab VAT Rules regarding monthy filing of VAT returns ammended

0 comments Wednesday, May 26, 2010
Rule 36 of Punjab VAT rules which deals with the filing of VAT returns has been ammended w.e.f 18/05/2010 vide notification No . G.S.R.   /P.A.8/2005/S.70/Amd.(  )/2010. s.The second and third Proviso to Rule 36 (1) have been ammended to provide that the monthly VAT returns are now required to be filed by only those dealers whose annual tax liability was Rs 2 Lakh or more in the previous Year and once the dealer's annual tax liability exceeds Rs  2 lakhs he will continue to file his monthly VAT returns in Form VAT 16 for all the subsequent years irrespective of the fact that his annual tax liability becomes less than Rs 2 lakhs in the subsequent years. 

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List of relitives U/S 56(2)VII of Income Tax Act 1961

0 comments Friday, May 21, 2010

Relatives from whom Gift is permissible under Income Tax Act
List of Male Donors                                           List of Female Donors
Father (Papa or Pitaji)                                         Mother (Maa or Mummy)
Brother (Bhai)                                                     Sister (Bahin)
Son (Beta or Putra)                                             Daughter (Beti or Putri)
Grand Son (Pota or Potra)                                  Grand Daughter (Poti or Potri)
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Procedure for VAT registration under Punjab VAT Act 2005 and CST Act 1956

0 comments Wednesday, May 19, 2010

Who is required to get registered as a VAT Dealer under Punjab VAT Act 2005
Every person, except a casual trader and one dealing exclusively in goods declared tax free, whose gross turnover during the year  exceeded the taxable quantum, as provided below, is  liable to pay tax under the Punjab VAT Act by way of VAT on the taxable turnover.

(i)            in relation to any person, who imports taxable goods for sale or use in manufacturing or processing any goods in the State, rupee one;
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Excess ITC can be utilised for payment of 25% of additional demand u/s 62(5) of PVAT Act 2005

0 comments Sunday, May 9, 2010
I have written an article earlier explaining the provisions of section 15(3) of Punjab VAT Act 2005. Section 15 of Punjab VAT Act deals with the Net Tax Payable by a taxable person. According to section 15(3) excess ITC after adjustment u/s 15(2) shall be adjusted against any outstanding tax, penalty or interest under this Act or under the Central Sales Tax Act, 1956, as the case may be.

Thus not only penalties but also any outstanding Tax or interest can be adjusted from the Excess ITC. Now the Punjab VAT Tribunal has confirmed in Ganesh Iron and General Store, Killinwari (muktsar) Vs. State of Punjab decided on 18-05-2009 [(2010) 14 STM 486 (PVAT-Tri.)] that excess ITC can also be utilised for payment of additional demand which is pre condition for hearing appeal.
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Section 51 of PVAT Act 2005

0 comments Sunday, May 2, 2010

Under section 51 of PVAT Act 2005 information collection centres have been esteblished by the Punjab Government at various places with a view to prevent and check the evasion and avoidance of tax under PVAT Act. Section 51(1) of PVAT Act authorizes the state government to esteblish such information collection centre or check posts by notification.

DOCUMENTS TO BE CARRIED WITH GOODS VEHICLE: According to sub section 2 of section 51 the owner or person incharge of a goods vehicle needs to carry with him the following documents:
1)a goods vehicle record,
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