AMIT BAJAJ ADVOCATE

Rate of reversal of Input Tax Credit u/s 13 of Punjab VAT Act, 2005 has been increased from 4% to 5% w.e.f 04/12/2012. Section 13 of Punjab VAT Act provides reversal of ITC @ 4% in the following circumstances:

1. Reversal of ITC of tax paid on purchase of goods within State, if such goods are sent outside State other than by way of sale in the cource of inter-state trade or commerce or in the cource of export out of territory of India.