Rate of tax reduced on iron and steel goods-Rules 21,54 of Punjab VAT Rules amended

0 comments Friday, January 31, 2014
Punjab Government has notified reduced rate of tax on Iron and steel goods as defined u/s 14 (iv) of Central Sales Tax Act, 1961 from 4.5% to 2.5% except on Non-CENVAT paid scrap. 
Non-CENVAT paid scrap has been made taxable at the rate of 1% only. This change has been made effective from 25.01.2014.

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Punjab reduces VAT on cigarettes, iron and steel

0 comments Tuesday, January 21, 2014
Having hiked the value added tax (VAT) on cigarettes last year to curb sales, the Punjab cabinet Monday decided to reverse the decision and reduced the tax on them.

Under the proposal approved by the cabinet at its meeting held here Monday with Chief Minister Parkash Singh Badal in the chair, VAT on cigarettes was reduced from 50 to 20.5 percent.
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Input Tax Credit is a concession granted by legislature, must be strictly construed

0 comments Sunday, January 5, 2014
Madras High Court in a very important case namely USA Agencies vs The Commercial Tax Officer has held that input tax credit under system of VAT is merely a concession granted by the Legislature under the sales tax law, therefore the provisions relating to such concession must be strictly construed. In this Judgement the Madras High Court very well explained the concept of input tax credit and also the scheme of the VAT system.
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Tax treatment of stock of goods as on 31.12.2013 taxable at first stage under Punjab VAT

0 comments Saturday, January 4, 2014
As we all know single stage taxation has been introduced on certain items under the Punjab VAT Act, 2005, whereby the goods notified for such purpose will be taxed at the first stage of their sale in Punjab and thereafter at all subsequent stages such goods will be sold as tax free. This system is applicable from 01.01.2014.

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