Reference Notification No. S.O.116/P.A8/2005/S.8/2005/S.8/2013 and NO
S.O 117/P.A.8/2005/S.8/2013 dated 13th December, 2013
In light of the above notifications we are receiving queries from
various dealers and lawyers. In response to this, following clarifications are
being issued:
1.
These notifications have been issued under the powers vested in
Government under section 8(3) of VAT Act, 2005 to modify the rates of tax.
2.
These notifications have nothing to do with newly introduced section
8-C of Punjab VAT act, 2005 which has provisions for introduction of optional
scheme.
3.
In light of these notifications any transactions in the hands of
manufacturer/first importer will be taxed at the rates mentioned against these
commodities. CST provisions will be applicable on the Manufacturer/First
Importer as earlier.
4.
In light of these notifications any transactions in the hands of
subsequent dealers will be tax free. So, if any subsequent dealer makes any
inter-state sale of the notified goods, the tax liability will be nil and at
the same time ITC available will also be nil.
5.
Some lawyers have pointed out that some of the items notified now like
tea, bread etc. were earlier taxed on the rates mentioned in Schedule –B or
were tax free and covered under Schedule A. But, now after this notification,
their rate seems to have been substantially increased to 14.5%. In this
context, it is clarified that the above mentioned notifications cover only
those items which were in Schedule-F earlier (13% rate of tax). In case any
item was earlier covered in Schedule-B or Schedule A, then that item continues
to remain in Schedule-B or Schedule A as the case may be.
6.
Moreover, the words mentioned in the notification – the words “such
as”, “like” and “etc.” have been used for further addition of goods
in future. This notification is applicable only on the goods
specifically notified therein.
7.
10% surcharge is applicable in addition to the tax rates mentioned in
these notifications.
8.
Some of the dealers, trade associations, bar council members etc have
requested that they need time to change their SAP / ERP systems and will
not be able to print computerized retail invoices at such a short
notice. Such dealers are given the time of 1 month to change their systems. But
1st January onwards
all the Tax invoices must be stamped as given below:
The commodities if any taxed at 15.95% (14.5% + 10% surcharge thereon)
are under single stage taxation regime. There will be no ITC available to the
subsequent dealer i.e wholesalers /distributors and retailers on these
commodities.
ITC available to the tune of Rs. ___________________ to the subsequent
dealer.
The Subsequent dealer i.e Wholesalers/Distributors and retailers will
also mention on his invoice as below:
The commodities at 15.95% (14.5% + 10% surcharge
thereon) are taxed at
Manufacturer/First Importer’s Stage and tax free under single stage
taxation regime. There will be no ITC available to the subsequent dealer on
these commodities.
ITC available to the tune of Rs. ___________________ to the subsequent
dealer.
9.
The dealers at the subsequent stages after Manufacturer/First Importer
have to declare their stock as on 31st December, 2013. The dealers at the subsequent
stages after Manufacturer/First Importer will continue to pay the tax according
to the provisions of Punjab VAT Act, 2005 on this stock
until completely sold or disposed off. The stock purchased by the
dealers at the subsequent stages after Manufacturer/First Importer on or after
1st January, 2014,
will be tax free at the subsequent stages after Manufacturer/First Importer’s
Stage.
10.
In Serial 19 of Schedule-E, Only Branded items will be taxable under
Schedule-E @ 15.95%.
11. In Serial No. 20 of
Schedule-E and 91 of Schedule-A, word or shall be read as and.
Dated: Sd/-
Sh. Jaspal Garg
DETC (VAT)
I, ___________________________, Proprietor/Partner/Managing
Director/Karta/ Authorized Signatory ____________________ of M/s
___________________________________________________, Address
___________________________________________________________________
______________________, holding TIN No. __________________, registered
under Punjab VAT Act, 2005 since ________________, trading in
________________________________________________________, hereby,
declare stock lying on my premises as on 31st December, 2013 as follows:
Commodities
|
Quantity
|
Existing Rate
|
New
Rate of
|
Value
|
Purchased
|
of tax
|
tax
|
From
|
|||
14.30%
|
15.95%
|
||||
14.30%
|
15.95%
|
||||
14.30%
|
15.95%
|
||||
14.30%
|
15.95%
|
||||
14.30%
|
15.95%
|
||||
14.30%
|
15.95%
|
||||
22.55%
|
24.75%
|
I understand that I shall be liable to pay tax on the value addition
on the above mentioned stock as per the provisions of Punjab VAT Act, 2005 at
the rate of tax prevalent before 1st January, 2014 as and when I sell/dispose this
stock.
Dated: 31st December, 2013 Signature
Name
Address
TIN No.
Posts
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