Mobile Phones are taxable @ 5.5% in Punjab-Order u/s 85 of PVAT Act, 2005

Before Sh. A. Venu Prasad IAS, Excise & Taxation Commissioner, Punjab.

Name of the Applicant                      M/s Ingram Micro India Ltd.,
                                                            B-XX-1275, Krishna Nagar,
                                                            Ghumar Mandi, Ludhiana.

Subject:                                            Application U/s 85 of the PVAT Act.


                        M/s Ingram Micro India Ltd., Ludhiana has made an application U/s 85 of the PVAT Act, 2005 seeking determination of question. The facts, as stated in the application, are that the applicant is engaged in the business of resale of Mobile Phones.

            The following question is taken up for determination:-

Whether 'Mobile Phones/Cellular Phones' being dealt by the applicant, are covered in Schedule 'B' appended to the Punjab Value Added Tax Act, 2005, under Item at S.No.60 i.e. Telephones, cell phones, tele-printer, wireless equipment and   parts thereof, Digital Video Disc & Compact Disc and Information Technology products, and consequently taxable @ 5% or fall in Schedule 'F' and liable to tax @12.5%.

Through the amendment dated 07-01-2011, sub-entry 6 of entry 60 was omitted from Schedule B. This sub-entry related to:-
                        "Transmission apparatus other then apparatus for radio"

                        Further entry 6(g) read as :-  "Cellular telephone"

                        However the principal entry i.e. entry No. 60 of Schedule B was as under:-

                        "Telephones, Cell Phones, tele-printer, wireless equipment and parts thereof, Digital Video Disc and information Technology products as given hereunder"

                        The principal entry was not amended through the notification dated 07-01-2011.

    As cell phones are specially mentioned in the principal entry No. 60 of Schedule B, the notification dated 07-01-2011 shall not impact the taxability of mobile phones which shall remain taxable @ 5.5% even after 07-01-2011. The clarification issued by Assistant Excise & Taxation Commissioner SAS Nagar (Mohali) is therefore correct.

                        The question is, therefore, determined accordingly.

                                                                            (A Venu Prasad)
Excise & Taxation Commissioner


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