Punjab Govt considering adding of word additional demand in section 62(5) of PVAT Act, 2005

0 comments Wednesday, June 1, 2011
There is a news that Punjab Government is planning to amend section 62(5) of Punjab VAT Act, 2005 to provide for prior minimum payment of 25% of additional demand before any appeal is entertained. The provision u/s 62(5) as existing now provides for prior minimum payment of 25% of total tax, penalty and interest, which the Hon'ble P & H High Court in Ahluwalia case and Punjab VAT Tribunal in many other cases have interpreted to mean that if additional demand is raised in any order under PVAT Act 2005 then 25% prior minimum payment will be of the total tax, penalty and interest  and not that of additional demand. Input Tax Credit and taxes paid in the returns by the assessee-dealer are presumed to be part of such 25% prior minimum payment.
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