Reduced rate of tax now made applicable from 01.02.2014- stock as on 31.01.2014 to be declared

In a public notice issued today on the website of the Department it now has been clarified that reduced rate of tax on iron and steel goods at the rate of 2.5% will now be applicable w.e.f 01.02.2014. 
 
Earlier in the notification issued as available on the official website of Punjab Government it was stated that reduced rate of tax on iron and steel would be applicable with immidiate effect, meaning thereby it was applicable from the date of the notification i.e. 25.01.2014.

But now it has been stated in the public notice that it will be applicable w.e.f. 01.02.2014. The public notice issued has itsef been amended.

In another public notice it has also been stated that dealers would have to declare their stock of iron and steel goods as on 31.01.2014.

The new public notice is produced herebelow:
EXCISE & TAXATION DEPARTMENT

GOVT. OF PUNJAB


PUBLIC NOTICE



KIND ATTENTION TO:- TAXABLE PERSONS, ADVOCATES, CHARTERED ACCOUNTANTS AND COST ACCOUNTANT.


1.            The State government has reduced the rate of tax from 4.50 percent to 2.5 percent on all Iron & Steel goods except non cenvat paid scarp.

2.            Rate of tax on non cenvat paid scrap is reduced to 1%.

3.            Input tax credit will now be restricted to two stages only.

4.            ITC on stock held as on 31-1-2014, will be restricted to the new rate of tax i.e 2.5% or 1 % as the case may be.

5.            Advance tax will be applicable to all Iron & Steel goods as enumerated in clause iv of section 14 of Central Sales Tax Act. 1956 @2.5% except non cenvat paid scrap which is taxable @1%.

6.            This new tax regime will come into effect from 1st February 2014.

For further information and clarification kindly visit website of the department i.e www.pextax.com.



D.P.REDDY,
Financial Commissioner Taxation and
Secretary to Government of Punjab,

Department of Excise & Taxation.

EXCISE & TAXATION DEPARTMENT,

GOVERNMENT OF PUNJAB


REVISED PUBLIC NOTICE / CLARIFICATION

KIND ATTENTION :- TAXABLE PERSONS, ADVOCATES, CHARTERED ACCOUNTANTS AND COST ACCOUNTANTS.

In response to the public notice published in newspapers on 1st, February, 2014 certain queries have been raised by some advocates and dealers. In response thereto, this notice with clarifications is being issued.

7.            The State Government has reduced the rate of tax on iron and steel goods as follows: -

Sr. No.
Name of the commodity

Rate of tax

Rate
of



Previous
New rate
advance tax.



rate




1.
All   Iron   and   Steel   goods   as

4.5% + 10%
2.5% + 10%
2.5%


enumerated in clause iv of Section 14

surcharge
surcharge



of  Central  Sales  Tax  Act,  1956







(Except non-CENVAT paid scrap).






2.
Non-CENVAT paid scrap

4.5% + 10%
1%  +  10%
1%




surcharge
surcharge



2.            ITC will now be restricted to two stages only and the information regarding stage of dealer is to be provided on the invoice itself, as per the format given below: -


First
First
Stage
Second
stage

importer/Manufacturer
taxable person
taxable person

(1)

(2)
(3)

Name of the





taxable person





TIN





Commodity





Weight in MT





Invoice No.





Tax liability





(To be printed on the backside of the invoice)

3.                 ITC on stock held as on 31-01-2014 will be restricted to the new rate of tax plus surcharge i.e. 2.75 percent or 1.1 percent as the case may be.

4.            Dealers are required to declare their stock as on 31-01-2014. For this purpose,

the dealers should go to official website of the department i.e.  www.pextax.com login into “e-services” then click on link “e-return” and select the link “Stock (Iron and Steel) as on 31-01-2014 to fill the information in the prescribed proforma available there.

5.                 This new tax regime will come into effect from 01, February, 2014.


D.P. REDDY
FINANCIAL COMMISSIONER (TAXATION) AND
SECRETARY TO GOVERNMENT OF PUNJAB,

DEPARTMENT OF EXCISE AND TAXATION.

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