Salaried taxpayers upto 5 Lac income need not to file returns- notification to be issued in June

0 comments Tuesday, May 31, 2011
As many as 85 lakh salaried tax payers with an annual income of up to Rs 5 lakh will not have to file income-tax return from now onwards, a finance ministry official said. "No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. We would notify this in first week of June," outgoing Chairman of Central Board of Direct Taxes Sudhir Chandra told reporters here. The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year). However, such tax payers would have to file return if they want to claim refunds, Chandra said. 

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Seller not liable to pay tax or penalty, if C forms given by Purchaser found to be not genuine afterwards- Madras High Court

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The Madras High Court in an important judgement delivered in case of M/S Sastha Enterprises Vs. Appellate Authority, Commissioner(CT) II (FAC) [VSTI 2011 MAD B-165] has held that selling dealers cannot be held for higher tax liability and consequential penal action for false declaration of the documents produced on the side of Buyer. In this case the seller was held liable in reopened assessment case, to pay tax by rejecting in transit sales on the ground that the C form obtained from the purchaser was found to be not genuine as the same was not issued by the concerned Assessing Authority.

Hon’ble High Court in this case held that unless and otherwise it is, based on concrete material, found out that the transaction is not true or the petitioner-seller is the party to the act of fraud said to be committed by the purchaser, the question of disallowing the exemption already given to the petitioner for the transaction actually effected between the parties, does not at all arise.

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No penalty u/s 271(1)(c) for faliure to disallow u/s 14A unless malafide is proved- Delhi ITAT

0 comments Monday, May 30, 2011
I have found the order of Delhi ITAT in the case namely DCIT Vs Nalwa Investments Ltd. very important one wherein it  has been held that mere faliure to disallow expenses u/s 14A will not amount to levy of penalty u/s 271(1)(c) unless malafide is proved. In this case even the auditors did not suggest disallowance u/s 14A in respect of expenses relating to tax free income. Hence no malafide intention for not attributing expenses to tax free income was proved consequently no penalty u/s 271(1)(c) could be levied.

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Exemption from long term capital gain u/s 54F of Income Tax Act 1961.

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If you have sold a long term  capital asset other than residential house you can save the tax payable on the long term capital gain arising from such sale by investing the sale proceeds into a residential house u/s 54F of Income Tax Act 1961.

Here below the provisions of section 54F have been discussed.

Exemption is available to Individual and HUF: Exemption u/s 54F is available only to an Individual and HUF assesses. Therefore if a firm or company etc (i.e other than individual and HUF assesses) have any long term capital gain, no exemption u/s 54F will be available to them.

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Four points essential to escape murder conviction-Supreme Court

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An accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled.
A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime.

"In order to bring a case under Exception (4) to Section 300 IPC, the evidence must show that the accused acted without any premeditation and in a heat of passion and without having taken undue advantage and he had not acted in a cruel or unusual manner.

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Why petrol prices are highest in Punjab?

0 comments Sunday, May 29, 2011

Petrol prices in Punjab are highest in India. People in Punjab wonder why they have to pay for petrol much higher than the neighbouring states. The reason for it is the higher VAT rates on Petrol in Punjab as compared to neighbouring states, infact much more than any other state in India.

In Punjab VAT  on Petrol is charged @ 27.5 per cent and surcharge on the VAT is 10 per cent which makes total VAT on petrol @ 30.25 per cent.
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Deductions available under Section 80C of Income Tax Act, 1961

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Every Taxpayer is entitled to reduce his tax liability by taking benefits of various deductions available under the Income Tax Act. Therefore one should plan his investment and make decision in such manner that, he may get benefit of deductions u/s 80C to 80U.  Section 80C of Income tax Act is an important section wherein investment in certain saving plans and some other expenditures are allowed as deduction to the taxpayer from his total income thereby saving his taxes.

The computation of expacted total income and tax thereon should be made right at the beginning of new financial year and should be reviewed in the later part of the financial year. The Finance Act, 2005 has withdrawn the rebate u/s 88 and in its place re-inserted section 80C for deduction in respect of contribution to PF, LIC premiums, investment in NSC, infrastructure bonds etc, w.e.f A.Y 2006-07.
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Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.

0 comments Saturday, May 28, 2011

I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in Punjab. I am sharing herebelow the full conversation.

Question: Dear Mr Bajaj,

As per our telephonic talk today I am submitting my query to you for your comments :
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Scope of Rule 114B regarding furnishing of PAN in certain transactions extended

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As per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule.

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Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-12

0 comments Friday, May 27, 2011
Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of.

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Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDT

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CBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings  the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are  produced herebelow for ready reference.

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Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractor

0 comments Thursday, May 26, 2011
The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor.

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Rates of Tax on various Goods under Punjab VAT Act 2005

0 comments Wednesday, May 25, 2011
I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab.  I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog.

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INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 1961

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WHAT IS HOUSE PROPERTY?
The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
ON WHOM IS TAX LEVIED?
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources.
Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners.
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Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actor

1 comments Tuesday, May 24, 2011

MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements.


The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials.


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No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITAT

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Delhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed  audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied.

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Punjab VAT- Uploading of information on bills made optional- news

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There is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This  was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference

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Mandatory online issuing of form 16A will force deductors to revise their TDS returns

0 comments Monday, May 23, 2011

has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process.

Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules.
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Section 9(2B) of CST Act is applicable retrospectively

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Section 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act.

The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan
Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1

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Interest for non payment or delayed payment of tax under Punjab VAT Act 2005

0 comments Sunday, May 22, 2011
Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due  if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows:

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Stainless Steel wire is not declared goods under CST Act 1956- Supreme Court

0 comments Friday, May 20, 2011
Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels.

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Procedure for downloading form 16A online

0 comments Thursday, May 19, 2011
Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link:
PROCEDURE FOR DOWNLOADING FORM 16A ONLINE

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Form 16A to be downloaded online by deductors for TDS on or after 01-04-2011

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Now TDS certificate in Form No 16A will be downloaded and generated  online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns.

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Powers of Excise & Taxation Inspectors enhanced till 31st December 2011 to make it almost at par with ETOs in Punjab

0 comments Tuesday, May 17, 2011
The powers of Excise and Taxation inspectors in Punjab have been enhanced till 31st December 2011. The Excise and Taxation Inspectors have been appointed as designated officers u/s 11,13,14,26,27,28,29,30,31,32, 36, 38, 39, 40,41,45, 46,47, 48, 49, 52,53,54,55,56, 57, 58,59, 60, 66,76,77 and 83 till December 2011.

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No need to give indemnity bond for deferment of entry tax in Punjab- General circular earlier issued amended

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Punjab Government has amended the General circular on deferment from payment of entry tax in Punjab earlier issued on 29-04-2011 in view of the directions of Punjab and Haryana High Court in Bhushan Steel case. In the circular issued on 29-04-2011 an indemnity bond was required to be submitted at the ICC barrier with ever bill which pass through the ICC barriers along with an undertaking and an affidavit to the concerned AETC of the concerned District.

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Section 44AB not applicable where income is declared u/s 44AE even though gross turnover exceeds audit limit

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I have found the following judgment of Pune ITAT as very important one on deciding the issue where a person engaged in the business of plying leasing or hiring of goods carriages, is owning less than 10 goods carriages and also hiring some goods carriages, can he declare his income u/s 44AE in respect of goods carriages owned by him? The answer to it has been provided in affirmative by the Pune ITAT.

 Another important thing which is noticeable from the following order is  that where a person is owning not more than 10 goods carriages but his gross turnover exceeds the audit limit u/s 44AB of Income tax Act,1961 even then he will not be required to get the books of account audited u/s 44AB, so long the income is declared u/s 44AE, in view of the provisions of section 44AE(5) of the Income Tax Act, 1961

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ADDITIONS ON THE BASIS OF CASH CREDITS - SECTION 68 OF INCOME TAX ACT 1961

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According to section 68 of Income Tax Act 1961, where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source of the same or the explanation offered by him is not satisfactory in the opinion of A.O., the sum so credited may be charged to income tax as the income of the assessee of that previous year. An attempt here is made to understand the provisions of section 68 of Income Tax Act,1961 herebelow:

 

There must exist books of accounts before making addition u/s 68: The addition under u/s 68 can be made on the basis of unexplained cash credit found in the books of the asseessee, hence existence of books of an assessee is a condition precedent before an addition u/s 68 can be made.

 

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Penalties under Punjab VAT Act 2005

0 comments Monday, May 16, 2011
Chapter X of Punjab VAT Act 2005 deals with offences and penalties. Here below the penalty provisions under PVAT Act have been provided.

Penalty for failure to register: Section 52 of the Act provides for penalty for a dealer who is required to get registered under Punjab VAT Act but he fails to make an application for registration as required u/s 21(2) of the Act (I.e within 30 days from the date he becomes liable to pay tax).

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No Penalty u/s 271(1)(c) on assessee for wrong advice of councel- P&H HC

0 comments Sunday, May 15, 2011
Commissioner of Income Tax, Karnal Versus Deepak Kumar

Crux of the Judgment: Bonafide mistake or belief is more or less a question of fact. No litigant should suffer on account of the mistake committed by the councel because the advise tendered by the councel is accepted by the litigant, which is based on bonafide belief of being correct.

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Subsidy not part of sale price for VAT purposes

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State of Punjab & another.Vs.M/s Morinda Cooperative Sugar Mills Ltd.   



Crux of the Judgment: Charging provisions under the Punjab VAT act provides for levy of VAT on turnover. If the assessee had received any further amount in addition to sale proceeds(Subsidy by State in this case), which is not part of the sale price, such amount could not be added to the turnover, consequently no VAT can be levied on the subsidy given by State.

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Procedure of Registration Under The Service Tax

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According to Section 69 ,every person liable to make payment of service tax  or any






Other person notified by the central govt through a  notification is required to get the registration under the service tax act

On Line Registration

On line registration has been mandatory for all kind of assesses w .e.f. 30-09-2009
Vide commissioner of service tax Trade Notice no. 14/ST/2009 dated 17-09-2009
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Public notice of Punjab Govt dt 30/09/2010 to some extent is ultra vires- P&H HC

0 comments Saturday, May 14, 2011
As we know State Governments cannot levy any tax on the sale or purchased of  goods exported outside India and the sale or purchase in the cource of export i.e Penultimate export as per section 5(3) of CST Act 1956 and Article 286 of the Constitution of India. For a sale to qualify as penultimate sale one of the conditions u/s 5(3) of CST Act is that the goods sold to the exporter must be the same goods as are being exported in pursuance of the export order in the hands of the exporter.

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State Governments are now free to levy VAT on Sugar and Textiles

0 comments Friday, May 13, 2011
The Union government has allowed the states to impose tax on sugar and textiles for the first time in 54 years.
In  the finance Act of 2011 the Additional Duties of Excise (goods of special importance) Act, 1957 has been amended.  Sugar and textile have been removed from the first schedule of the said Act.

After this amendment, states are free to levy value added tax on sugar and textile.These commodities  were put under the scheduled commodities, with the enactment of the Additional Duties of Excise Act in 1957 by the Nehru government.

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Tax planning by conversion of stock in trade into capital asset

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When a capital asset is converted into stock in trade then capital gain u/s 45(2) of Income Tax Act arises in the year of sale and not in the year of conversion. But in vice versa situation i.e conversion of stock in trade into capital asset there doesnot arise any capital gain.

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Fair Market rent on a house property u/s 23(1)(a) of Income Tax Act to be determined considering all relevant factors

1 comments Wednesday, May 11, 2011
I have found the following Judgment of Mumbai ITAT in the case namely Tivoli Investment & Trading Co. vs ACIT as a good one on determination of Annual Rental value u/s 23(1)(a) of Income Tax Act, 1961. As we know for determining annual value of a house property standard rent or municipal value, actual rent, Fair market rent all factors have to be considered. Where rent is reduced due to high security deposit by the tenant, then AO is not bound by standard rent or the municipal value.

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Prior payment of 25% before entertaining appeal u/s 62(5) of PVAT Act has to be of total tax penalty and interest.

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Section 62(5) of Punjab VAT Act provides for a mandatory condition of minimum payment of 25% of the total tax, penalty and interest, if any before any appeal under Punjab VAT Act 2005 is entertained.

Section 62(5) of PVAT Act runs as under:

“No appeal shall be entertained, unless such appeal is accompanied by satisfactory proof of the prior minimum payment of twenty five per cent of the total amount of tax, penalty and interest, if any”
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Change of Tax rates in Punjab Tax on Lotteries Act 2005

0 comments Tuesday, May 10, 2011

GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE AND TAXATION

(EXCISE AND TAXATION II BRANCH)

NOTIFICATION

The  15th      April 2011
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Sale to All India Pingalwara charitable society Amritsar under PVAT made tax free

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GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE AND TAXATION
(EXCISE AND TAXATION II BRANCH)
Notification
The  25th  April  2011
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Circular clarifying some issues related to Short Term Accomodation and Resturant Service issued

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Circular No. 139/8/2011-TRU
F.No.334/81/2011-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Tax Research Unit
New Delhi, the 10th May 2011
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Procedure for claiming Provisional refund under Punjab VAT Act notified

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Section 39(1-A) of Punjab VAT Act, 2005 was added recently by an Ordinance dated 21-02-2011 whereby provisional refund upto one crores of rupees was allowed against an indemnity bond to those dealers who are not able to produce the statutory declarations forms under CST Act(i.e C,H, E1, EII forms etc.) as per the requirement of Rule 52(4) of PVAT Rules, for claiming the refund.

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No offence u/s 138 of N.I. Act is committed for dishonour of cheque given as security deposit

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The Bombay High Court in a very important judgment namely Joseph Vilangadan v. Phenomenal Health Care Services Ltd. & Anr. has given the verdict that if a cheque issued as security deposit gets  dishonoured with remarks “insufficient funds” or “stop payment” as happened in the said case then no offence will be deemed to have been committed u/s 138 of Negotiable Instrument Act, 1881. 

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Carry forward of unabsorbed depreciation allowed even return filed after due date-Delhi High Court.

0 comments Monday, May 9, 2011
Delhi High Court in an important judgment in a case namely CIT vs. Govind Nagar Sugar Limited (2011) ISI B-469 Del. (H.C.), has held that “The effect of Section 32(2) is that unabsorbed depreciation of a year becomes part of depreciation of subsequent year by legal fiction and when it becomes part of current year depreciation it is liable to be set off against any other income, irrespective of the fact that the earlier years return was filed in time or not.”

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Truck and Bus Body Fabrication are taxable @ 5% under PVAT Act 2005

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Fabrication of Truck and Bus Body has been included in the schedule B of Punjab VAT Act whereby the said transaction has been made taxable @ 5%(after surcharge it will be 5.5%) under the Punjab VAT Act 2005. The relevant notification is produed herebelow for ready reference of all concerneds:


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VAT return forms changed in Punjab, condition of availability of ITC upto 4th stage also deleted

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VAT 23 AND VAT 24 Return Forms under Punjab VAT Act 2005 have been amended vide notification  dated 14-03-2011. By this notification the condition of   allowing  ITC on purchase of goods upto 4th stage of purchase from manufacturer or importer has also been done away with. The relevant provisions relating to it i.e Rule 21(7) and clause (m) of sub rule (4) of  Rule 54 which were added last year vide notification dated 17-03-2010, have been deleted.

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Whether any penalty or interest may be levied for non submission of requisite C forms?

0 comments Saturday, May 7, 2011
As we know C forms are required to be submitted by a seller with the sales tax authorities after obtaining the same from the purchaser of goods if the sale is an interstate sales and CST has been charged at concessional rate of 2% as per the requirement of section 8(4) of CST Act 1956. Sometimes a dealer if has made an interstate sales at concessional rate of CST against C form then afterwards, the purchaser doesnot provide the requisite C form to the seller then in such case difficulties are faced by the seller at the time of finalizing of his assessment proceedings.

The question arises whether in such cases any penalty or interest on the additional tax due can be levied on the seller for non submission of requisite C form? An attempt has been made here to find answer to this question as follows:

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Uploading of Information relating to some intra state transactions made compulsory in Punjab

6 comments Friday, May 6, 2011
Punjab Govt has issued a public notice to the effect making it compulsory to upload the data of invoices to be issued on the official website of the Department even in case of intra state transactions(i.e transactions within the state) in the prescribed format, where the amount of bill is in excess of Rs 200000 except in case of Iron and Steel, Cotton bales and yarn, Edible oils, Timber, Marble, Tiles of all kinds, in which case the amount is in excess of Rs 20000.

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Download the order of P&H HC in Bhushan Steel case staying the entry tax in punjab

0 comments Wednesday, May 4, 2011
The all important order of the Punjab & Haryana High court providing interim stay on entry tax in Punjab can be downloaded by clicking at the below link:
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The grounds on which Entry Tax in Punjab is stayed by P&H High Court-Analysis of the Judgment in Bhushan Steel case

0 comments Tuesday, May 3, 2011
Punjab & Haryana High Court in Bhushan Power & Steel Limited v State of Punjab & others has granted interim stay to the petitioners on the levy of entry tax u/s 3-A of Punjab Tax on  Entry of Goods into Local areas Act 2000(hereinafter called as the Act), by considering it to be as ultravires of the State Government’s power to levy tax under the Constitution of India. Here the grounds on which stay has been granted are being discussed and an attempt has been made to make readers understand the order of the High Court in the said case.

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A short note on section 80CCC of Income Tax Act 1961

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Section 80CCC of Income Tax Act 1961 deals with the deductions and income in respect of contributions to certain Pension funds by an individual assessee. Herebelow the relevant provisions of section 80CCC are discussed.

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General Circular on Deferment from payment of Entry Tax in Punjab issued by Punjab Govt.

0 comments Monday, May 2, 2011
As we know the Hon’ble Punjab & Haryana High Court has already stayed the levy of entry tax in Punjab in the case of M/s Bhushan Steel v State of Punjab case on 28-03-2011 and also in other similar writ petitions challenging the levy of entry tax in Punjab on 08-04-2011. But the interim stay were applicable only to the persons who have filed writ petitions and the relief regarding deferment from payment of entry tax was available only to the concerned persons who have filed writ petitions in the High court as a result it was giving rise to filing of more and more writ petitions on the similar issue resulting in multiplicity of litigation in the High Court. Hence  in the order of 08-04-2011 the Hon’ble High court expressed its opinion as follows:

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Penalties, Interest under PVAT Act, CST Act and pre deposit of 25% u/s 62(5) of PVAT Act can be adjusted from excess ITC

0 comments Sunday, May 1, 2011

Section 15 of PVAT Act 2005 deals with the Net Tax Payable by a taxable person. Sub section 1 of Section 15 provides that the output tax under PVAT Act shall be adjusted from the Input Tax Credit for determining Net Tax Payable by a taxable Person. If any excess ITC is still left then it is to be adjusted from the CST liability under CST Act 1956 at the option of the taxable person as per section 15(2) of PVAT Act.

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