Punjab VAT-Nakku and Kinni made tax free and tax on pre-owned cars being imposed

The Government of Punjab has made Nakku and Kinni the by-products of rice as tax free items by including them in schedule A of the Punjab VAT Act, 2005. It should be noted that Nakku and Kinni except when used by distillieries were taxable @ 5%, but now both the items have been made tax free without any condition.

Tax on pre-owned cars have also been imposed at the rate of 3000 per car if the engine capacity doesnot exceed 1000cc and 5000 in other cases. The relevant notification is being produced herebelow:    

The        September, 2011
No.         S.O.          /P.A. 8/2005/S.8/2011- Whereas the State Government is satisfied that circumstances exist, which render it necessary to take immediate action in public interest;
Now, therefore, in exercise of the powers conferred by sub-section (3) of section 8 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 amendments in Schedules ‘A’, ‘B’, and ‘E’, appended to the said Act, with immediate effect by dispensing with the condition of previous notice, namely:-

1.        In the said Schedule ‘A’, -

(a)     Serial No. 66 and entries relating thereto shall be omitted; and
(b)     For serial No. 78 and the entries relating thereto, the following shall
                     be substituted namely:-

“78,  Nakku and Kinki”.

2.      In the said schedule ‘B’, serial No. 160 and entries relating thereto shall be omitted.

3.      In the said schedule ‘E’, after serial No.9, and the entries relating thereto the following shall be added, namely:-

   ‘’10 (a) Pre-owned cars having engine       Rs.3000/-      per car on the first
                        Capacity not exceeding 1000cc.                               sale, by a dealer
liable to pay
tax under this Act.

          (b) Pre-owned cars having engine       Rs.5000/-         per car on the first
               Capacity  exceeding 1000cc.                                    sale, by a dealer
  liable to pay tax
  under this Act.”          

                                                                     KARAN BIR SINGH SIDHU
         Financial Commissioner, Taxation and
         Secretary to Government of Punjab,
         Department of Excise and Taxation.


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