Lease rental received or receivable during the tax period only, as a right to use goods, is the turnover forming part of sale price

1 comments Monday, March 25, 2013

Punjab & Haryana High court in GE Capital Transportation Financial services Ltd vs State of haryana has held that the lease rental received or receivable during the tax period only, as a right to use goods, is the turnover forming part of sale price. 
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Public Notice under Punjab VAT regarding E-payment



Excise and Taxation Department 


Dated: 25th March 2013 

Attention: All VAT Dealers, Advocates, Chartered Accountants and Cost Accountants 

Subject: Launching of e-Payment facility 

1. The Department of Excise and Taxation has over the last couple of months received observations regarding inconvenience caused to dealers in submitting payments. In the existing process the dealer has the following inconveniences:

1.1. The dealer visits Department’s office to collect Challan.

1.2. Then he fills the challan manually and visits the Bank to deposit the amount.

1.3. After successfully submitting the Payment, Dealer visits office of AETC to submit the copy of Challan.

1.4. Submission of Challan in the Department is dependent on availability of staff and can be done only during specific working hours.

1.5. Challan is manually handled and reviewed manually by the department.

1.6. Dealer has to retain photocopies of the Challan Copy submitted to the department.

1.7. Dealer Ledger is updated only after Physical Challan is submitted and verified by the department.

2. To eliminate these inconveniences and to make the payment procedure user friendly, the Department is launching an integrated e-payment facility.

3. This e-Payment facility would bring in following benefits for the dealers

3.1. Anytime, anywhere payment facility to the Dealer.

3.2. No need to visit departmental office or Bank for payment.

3.3. No need of waiting or standing in Queues.

3.4. No scope of manual error at Department’s end.

3.5. Automatic update of Dealer Ledger.

3.6. Provision to view past payment details on Portal.

3.7. Provision to view pending payment details on Portal.

3.8. Option to make payment from multiple Banks.

3.9. Automatic three way reconciliation between the Department, Bank and Treasury, hence eliminating the chances of any inconvenience due to non-reconciliation.

 4. The Department has already tied up with Punjab National Bank, ICICI Bank, HDFC Bank and Kotak Mahindra Bank for providing this facility. Dealer can start using the facility with PNB and Kotak Mahindra bank from now onwards. More Banks such as SBI, SBoP, Union Bank of India, Vijaya Bank and Axis Bank would be included in second phase. The existing facility of e-Payment through State Bank of India would continue to be available to the dealers, till it gets upgraded to the integrated e-Payment mode.

5. Dealers are requested to use and test this e-Payment facility.

6. Department intends to make e-Payment mandatory for ALL VAT payments more than Rs.25,000 with effect from 10th April 2013. Concerns, suggestions or objections, if any, may be conveyed through email to latest by 31st March 2013. 

7. The step wise procedure is provided at the end of this notice.

8. Training sessions on the procedure and facility were scheduled by the Department at six major cities of the State between 22nd January and 28th January 2013. Additionally, a detailed step-by-step training video has been uploaded, since 29th January 2013, which can be accessed at

9. Suggestions, views and objections are invited from all concerned stakeholders on the proposed procedure. The suggestions, views and objections may be e-mailed to latest by 31st March 2013.

10. Thank you.
Anurag Verma 
Excise and Taxation Commissioner 
Govt. of Punjab 

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ALV of flats, built by assessee engaged in construction business, lying unsold, is assessable as income from house property


Delhi High Court in CIT vs Ansal Housing Finance Leasing Co. Ltd has held that ALV of flats, built by assessee engaged in construction business, lying unsold, is assessable as income from house property.
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Latest entry tax rates in Punjab

1 comments Sunday, March 17, 2013

Sharing herebelow with all readers latest Entry Tax Rates in Punjab. It should however be noted that Entry Tax in Punjab has already been stayed by Punjab & Haryana High Court in CWP No. 15378 of 2008 Bhushan Power & Steel Limited vs State of Punjab. 

Any person who does not want to pay entry tax in Punjab then one may apply for deferment from payment of Entry Tax in Punjab as per General Circulars 1 and 2 of Excise & Taxation Department, Punjab.   
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Income Tax offices to remain open on 30th and 31st March for facilitation of filing IT returns

0 comments Friday, March 15, 2013

ORDER [F. NO. 225/45/2013/ITA.II]DATED 13-3-2013
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Direct cash deposit into supplier's bank account is violation of section 40A(3)


Madras High Court in CIT vs Venkatadhri Constructions has held that Cash payment exceeding prescribed limits u/s 40A(3) by directly depositing the amount to supplier's bank account, would be treated as cash payment and provisions of section 40A(3) would be applied in such case.
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Due Date of efiling of vat returns of 3rd qtr 2012-13 extended to 15th March, 2013

0 comments Tuesday, March 5, 2013


Excise and Taxation Department
Dated: 4thMarch 2013

Kind Attention: All VAT Dealers, Advocates, Chartered Accountants and Cost Accountants

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Immovable properties held as stock in trade to be dealt in same terms as capital asset is dealt u/s 50C

0 comments Monday, March 4, 2013

Currently, when a capital asset, being immovable property, is transferred for a consideration which is less than the value adopted, assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, then such value (stamp duty value) is taken as full value of consideration under section 50C of the Income-tax Act.

 These provisions do not apply to transfer of immovable property, held by the transferor as stock-in-trade.

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Return of income filed without payment of self-assessment tax to be treated as defective return

0 comments Sunday, March 3, 2013

Section 139(9) of Income Tax Act has been proposed to be amended in the Finance Bill 2013-14:
A. Existing provisions of section 139(9):
Under the existing provisions of the Income Tax Act, 1961, a Return of Income is regarded as defective unless it fulfils all the conditions laid down in sub-section (9) of section 139 of the Act.
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Process of issuing entry tax deferment certificate is invalid


Punjab & Haryana High Court has held in M/s Hemco Ispat ltd vs State of Punjab CWP no. 3578 of 2013 that the process of issuing entry tax deferment certificate having validity of limited period is not warranted under the orders of this Court passed in CWP No.15378 of 2008 titled “M/s Bhushan Power and Steel Limited Vs. State of Punjab etc.

After this judgement now the process evolved by the Excise and Taxation Department to grant the certificates of entry tax deferment to dealers having a limited period validity will be treated as not in accordance with the interim orders of the Hon'ble High court as made in Bhushan Power and Steel Ltd vs State of punjab in CWP 15378 of 2008 and hence not valid.
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TDS on sale of immovable property of Rs. 50 lakh or more

1 comments Friday, March 1, 2013

Clause 42 of the Finance Bill seeks to insert a new section 194-IA in the Income-tax Act relating to payment on transfer of certain immovable property other than agricultural land. 
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Definition of capital asset in respect of agriculture land changed


The provisions contained in clause (14) of the section 2 of Income Tax Act, 1961, define the term “capital asset” as property of any kind held by an assessee, whether or not connected with his business or profession. Certain categories of properties including agricultural land have been excluded from this definition. 
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Key highlights of Union budget 2013-14


1.No revision in Tax slabs of Income Tax for individuals. A minor Tax credit of Rs.2,000 for whose income is up to Rs.5 lakh has been given (Rebate under Sec 87A).

2. Additional surcharge will be levied at 10% (other than Companies) whose income exceeds Rs 1 crore. Additional surcharges to be in force for only one year.
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