Sports goods may be made tax free in Punjab- benefits and drawbacks which may arise out of it

0 comments Wednesday, June 22, 2011
There is a news that Punjab Govt is considering to make sports goods tax free under the Punjab VAT Act 2005. It may be a relief for the sports industry which is currently facing lot of competition from the sports industry in UP and also in the international market.

But making sports goods tax free would result in that the tax paid on the purchase of raw material by the manufacturers will be lost and no input tax credit of such tax paid will be available, since as per section 13 of Punjab VAT Act, ITC of tax paid on purchase of any goods is not available, if tax free goods are manufactured out of it.

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Punjab may impose VAT on pre-owned car dealers-News

The Punjab government has proposed value added tax (VAT) on pre-owned car dealers, making second hand cars costlier, and it is likely to be approved by the Cabinet at its meeting on Wednesday. 

Sources said it has been proposed by the state excise and taxation department to levy VAT on vehicles which are bought from the pre-owned car dealerships in the state and is on the agenda of Wednesday’s cabinet meet.

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