Punjab Govt. promuglates new ordinance on entry tax with retrospective effect from 06.05.2015

0 comments Tuesday, December 15, 2015
The Punjab Government has promuglated new ordinance namely THE PUNJAB DEVELOPMENT OF TRADE, COMMERCE AND INDUSTRIES (VALIDATION) ORDINANCE, 2015 to levy entry tax on the goods specified in the schedule apended to such ordinance. The schedule appended to such ordinance contains only one item i.e. sugar.
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VAT on all automobiles reduced to 12% under Punjab VAT Act, 2005

1 comments Thursday, November 19, 2015
The Punjab Government, Excise and Taxation department, Punjab has reduced VAT on all automobiles (i.e. commercial vehicles, passenger vehicles, three wheelers, two wheelers) from 13% to 12%. That means now all automobiles will be taxable @ 13.2%(after adding surcharge of 10% as applicable u/s 8-B of PVAT Act, 2005.)
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Due date for efiling of VAT-20 of year 2014-15 extended to 30th November 2015

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GOVERNMENT OF PUNJAB 

DEPARTMENT OF EXCISE & TAXATION

PUBLIC NOTICE


KIND ATTENTION: DEALERS/CHARTERED ACCOUNTANTS/LAWYERS/OTHER STAKEHOLDERS

This is to inform all the concerned that the last date of e-filing of VAT-20 for the year 2014-15 has been extended till 30th November, 2015. 

Dated: 19th November, 2015

 Excise & Taxation Commissioner, Punjab
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Mere bonafide mistake in calculating reversal of ITC does not attract penalty-Punjab VAT Tribunal

0 comments Tuesday, November 17, 2015
In one of my cases namely M/s Shree Ganesh Roller Flour Mills Akalpur Road, Phillaur, District Jalandhar Versus The State of Punjab. Appeal No. 38 of 2015 decided on 10.09.2015 it has been decided by Punjab VAT Tribunal that mere bonafide mistake in calculating reversal of ITC does not attract penalty. The matter remanded back to DETC(A) for passing a speaking order considering the observations of the Tribunal.
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Amendment to Section 2(14)(III)(b) relating to measurement of distance aerially to apply prospectively

0 comments Friday, October 9, 2015

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

NEW DELHI

  

 

Circular No. 17/2015

Dated : 06th October, 2015

 

  

SUBJECT : MEASUREMENT OF THE DISTANCE FOR THE PURPOSE OF SECTION 2(14)(III)(B) OF THE INCOME-TAX ACT FOR THE PERIOD PRIOR TO ASSESSMENT YEAR 2014-15.

 

 

"Agricultural Land" is excluded from the definition of capital asset as per section 2(14)(iii) of the Income-tax Act based, inter-alia, on its proximity to a municipality or cantonment board.  The method of measuring the distance of the said land from the municipality, has given rise to considerable litigation. Although, the amendment by the Finance Act  2013  w.e.f. 1.04.2014 prescribes the measurement of the distance to be taken aerially, ambiguity persists in respect of earlier periods.

 

 

2. The matter has been examined in light of judicial decisions on the subject. The Nagpur Bench of the Hon. Bombay High Court vide order dated 30.03.2015 in ITA 151 of 2013 in the case of Smt. Maltibai R Kadu has held that the amendment prescribing distance to be measured aerially, applies prospectively i.e. in relation to assessment year 2014-15 and subsequent assessment years. For the period prior to assessment year 2014-15, the High Court held that the distance between the municipal limit and the agricultural land is to be measured having regard to the shortest road distance. The said decision of the High Court has been accepted and the aforesaid disputed issue has not been further contested.

 

 

3. Being a settled issue, no appeals may henceforth be filed on this ground by the officers of the Department and appeals already filed, if any, on this issue before various Courts/ Tribunals may be withdrawn/ not pressed upon.  This may be brought to the notice of all concerned.

 

(D S CHAUDHRY)

CIT (A & J), CBDT, New Delhi.

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ITR For A.Y 2014-15 can now also be e- verified

0 comments Wednesday, October 7, 2015
Government of India 
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, 
New Delhi, 
the 6 th of October, 2015

Order under section 119(1) of Income-tax Act, 1961
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All you need to know about tax free bonds

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Tax-free bonds are a very attractive investment opportunity available for an investor. Tax-fee bonds offer good diversification within the fixed income category with the additional advantage of tax-free gain alongside safety of capital. i.e., no tax on the interest and get the full slice of interest without any cut – 100% yours.
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Documents required for luxury tax registration in Punjab

0 comments Sunday, October 4, 2015
Luxury Tax Registration
To apply for new ‘Luxury Tax registration’ the below documents are needed to submit in concerned district office front window by dealer who is applying for new Registration:-
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Documents required for Punjab VAT registration

0 comments Friday, October 2, 2015
Value Added Tax (VAT)

To apply for new registration for VAT/CST in punjab the below documents are needed to submit in concerned district office front window by dealer who is applying for new Registration:-
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Back to back sub-contracting- No VAT leviable on profit element of main contractor

3 comments Sunday, September 20, 2015
In the construction and real estate industry it is common practice for the Contractors to sub contract the whole of the contract for execution on back to back basis. While sub-contracting on back to back basis the main contractor retains its profit element from the total consideration received from the contractee. In such case the question which arises whether such profit element is subject to any tax under VAT.
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Judgement in writ petitions challenging section 62(5) of PVAT Act reserved by High Court

0 comments Thursday, September 10, 2015
Earlier I had shared with my readers that I had filed writ petitions along with other similar petitions challenging the Constitutional validity of section 62(5) of Punjab VAT Act, 2005 before Punjab & Haryana High Court.

The arguments in all such writ petitions have been finally concluded and the judgement has been reserved by the Hon'ble Punjab and Haryana High Court on 09.09.2015. 

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Writ petitions challenging enhancement of assessment period from 3 to 6 years under Punjab VAT dismissed by High Court

0 comments Saturday, August 8, 2015
The Punjab and Haryana high court on 07.08.2015 dismissed the petitions of more than 150 firms operating in Punjab which had challenged amendment in the VAT (value-added tax) Act, 2005 by the state government in 2013.
As per rough estimates and arguments of the state in the high court, there will be a revenue benefit of more than Rs 100 crore with this order.
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Due date of efiling of Punjab VAT return for Q1 of year 2015-16 extended

0 comments Thursday, July 30, 2015
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE & TAXATION
PUBLIC NOTICE
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Representation on claim of Input Tax Credit on LPG by hotel industry under PVAT Act, 2005

0 comments Saturday, July 25, 2015
 I had prepared a reprsentation on allowance of input tax credit on purchase of LPG to the Hotel Industry. This representation was prepared on behalf of Hotel Industry of Punjab and has already been sent to Dy. Chief Minister of Punjab on 15.05.2015. The Dy. CM Punjab has already forwarded this representation to the Financial Commisasioner Taxation, Punjab for necessary action.

It is worth noting that LPG is a main input tax credit for hotel industry, however, the input tax credit on the purchase of the same is not allowed by the revenue on the basis of section 13(5)(b) of Punjab VAT Act, 2005. The letter of representation is as under:

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Interim stay on section 62(5) of Punjab VAT Act, 2005

0 comments Wednesday, July 8, 2015
The Hon'ble Punjab & Haryana High Court in one of writ petitions challenging the constitutional vires of section 62(5) of Punjab VAT Act, 2005 filed by me has granted interim stay on adopting coercive measures for recovery of 25% pre-deposit as required under the said section for hearing of appeal and also has made an order as to non dismissal of appeal for want of such pre-deposit.

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CBDT's circular on copndonation of delay in filing returns and c/f set off losses

0 comments Thursday, June 11, 2015
The CBDT has issued Circular No. 9/2015 dated 9th June 2015 to deal with the issue of condonation of delay in filing refund claim and claim of carry forward of losses under section 119(2)(b) of the Income-tax Act. The said Circular contains containing comprehensive guidelines on the conditions for condonation and the procedure to be followed tor deciding such matters. 

The most important is that the application for condonation of delay in filing the returns where refund is claimed and for carry forward and set off of losses can now be filed wthin 6 years from the end of the relevant assessment year.

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Demand on account of mismatch of TDS credit cannot be enforced coercively

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No. 275/29/2014-IT-(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Dated New Delhi, the 1st June, 2015
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Punjab VAT-Penalty levied u/s 51 without serving proper notice is illegal

0 comments Thursday, June 4, 2015
The Punjab VAT Tribunal in one of my cases namely Welspun Projects Limited vs State of Punjab Appeal No. 146 of 2014 decided on 27.04.2015, has quashed the penalty levied u/s 51 of Punjab VAT Act, 2005 on the roadside, as the same was levied without serving proper notice and thereby denying reasonable opportunity of being heard to the appellant.
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Punjab Govt levies 11% entry tax on Sugar imported from outside State

0 comments Tuesday, June 2, 2015
In exercise of the powers u/s 4(1) of the newly introduced ordinance The Punjab Trade Commerce and Development Ordinance, 2015, entry tax @ 11% has been levied on Sugar. The notification is dated 01.06.2015 therefore the levy may be presumed to have taken effect from 01.06.2015.
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New entry tax law-The Punjab Development of Trade, Commerce and Industries Ordinance, 2015

0 comments Thursday, May 28, 2015
The Punjab Government has introduced a new entry tax law by the name The Punjab Development of Trade, Commerce and Industries Ordinance, 2015. This ordinance is promuglated w.e.f 05.05.2015. 
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State Government did not have power to legislate Rule 21(8) of Punjab VAT Rules-P&H HC

0 comments Tuesday, May 26, 2015
Punjab & Haryana High Court in the case of The Jalandhar Iron and Steel Merchants Association(Regd), Jalandhar vs State of Punjab has held that the State Government did not have power to legislate Rule 21(8) of Punjab VAT Rules, 2005 before 01.04.2014 so as to restrict ITC on stock of iron and steel goods as existing on the date of reduction of tax on such goods.
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DETC(Admin) exercising power of DETC(Appeals) whether unconstituitional

2 comments Thursday, May 14, 2015
The Excise and Taxation Department vide its notification No. S.O.93/P.A.8/2005/S.3/2013 Dated 16.10.2013 designated all the officers rank of Deputy Excise and Taxation Commissioners of the Department to act as appellate authority u/s 62 of Punjab VAT Act, 2005, which mean that not only DETC(Appeals) but DETC(Admins) have also been authorized to act as appellate authority. Earlier only DETC(Appeals) were designated to act as appellate authority.
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Punjab VAT-No assessment or provisional assessment without the prior approval of ETC

0 comments Thursday, May 7, 2015
Punjab Government has suitably  amended Rule 47 of the Punjab VAT Rules, 2005 whereby no assessment or provisional assessment now can be framed without the prior approval of the Excise and Taxation Commissioner, Punjab.

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Rahat scheme under Punjab VAT extended to all towns

0 comments Friday, March 13, 2015
The Excise and Taxation Department, Punjab has extended the Rahat Scheme earlier notified u/s 8-A of Punjab VAT Act, 2005, to all the retailers who are carrying on business anywhere in Punjab.
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Punjab VAT-Rate of Advance tax on iron and steel enhanced to 3.5%

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PUNJAB GOVT. GAZ. (EXTRA), MARCH I l, 2015 29 (PHGN 20,1936 SAKA) 

PART III 

GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-II BRANCH) 

NOTIFICATION

 The 11th March,20l5 .
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Punjab VAT-Rate of tax on iron and steel enhanced to 3.5%

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Punjab Government has enhanced rate of tax on iron and steel goods as enumerated in clause-iv of Section 14 of Central Sales Tax Act, 1956 except Non-Cenvat paid lron and Steel Scrap from 2.5% to 3.5%. After adding surcharge of 10% u/s 8-B of Punjab VAT Act 2005 the effective rate is now 3.85%.
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Interest earned from Recurring Deposit also subject to TDS

2 comments Monday, March 2, 2015
The Finance Bill, 2015 has proposed to amend section 194-A of Income Tax Act, 1961 so as to levy TDS on recurring deposits as well. It is notable here that earlier TDS was applicable only on the interest earned in Fixed Deposits with the banks. Now interest earned from Recurring deposits will also be subject to TDS.
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Proposed Amendments in TDS/TCS provisions-Budget, 2015

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The Finance Bill, 2015 proposes to rationalize the provisions of TDS and TCS under the IT Act. As such, the key proposals seek to bring parity between the TDS and TCS machinery provisions, resolve the uncertaintysurrounding taxation of interest payments by cooperative banks to members, strengthen TDS provisions relating to salary income and extend reporting requirements under section 195(6) of the IT Act to payments that are not chargeable to income tax.
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Investment in Sukanya Samriddhi account also eligible for deduction u/s 80C

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I. Introduction
In exercise of powers available under Section 80C(2)(viii) of the Income-tax Act, 1961 ("the Act"), the Central Government had notified a scheme known as "SukanyaSamridhi Account Scheme" videNotification No. G.S.R. 863(E) dated 02-12-2014.

Under the scheme, an amount deposited as per the provisions of the scheme was eligible for deduction under section 80C and the interest earned on the scheme was taxable.
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Relaxation from TDS u/s 194C restricted to only small transporters

0 comments Sunday, March 1, 2015
Under the existing provisions of section 194C of the Act payment to contractors is subject to tax deduction at source (TDS) at the rate of 1% in case the payee is an individual or Hindu undivided family and at the rate of 2% in case of other payees if such payment exceeds Rs. 30,000 or aggregate of such payment in a financial year exceeds Rs. 75,000. Prior to 1.10.2009, section 194C of the Act provided for exemption from TDS to an individual transporter who did not own more than two goods carriage at any time during the previous year. Subsequently, Finance (No.2) Act, 2009 substituted section 194C of the Act with effect from 1.10.2009, which inter alia provided for non- deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer. 
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No money above 20000 in cash, in relation to transfer of immovable property

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The existing provisions contained in section 269SS of the Income-tax Act provide that no person shall take from any person any loan or deposit otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, if the amount of such loan or deposit is twenty thousand rupees or more. However, certain exceptions have been provided in the section. Similarly, the existing provisions contained in section 269T of the Income-tax Act provide that any loan or deposit shall not be repaid, otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, by the persons specified in the section if the amount of loan or deposit is twenty thousand rupees or more.
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Cross adjustment between CST and State tax allowable, no interest leviable for short payment

0 comments Tuesday, February 3, 2015
Many a times dealers face a situation where due to technical error or clerical mistake while making payment of sales tax, tax is wrongly paid in wrong account i.e. instead of paying under the head of Central sales tax, it is paid under the head State VAT/sales tax. In such case whether adjustment between both heads can be done or not is a question which arises. 
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All items exempted from e-trip under Punjab VAT Act, 2005

0 comments Monday, February 2, 2015
The Excise and Taxation Conmissioner, Punjab has exempted all the items from E-trip under Rule 64-A of Punjab VAT Rules, 2005. E-Trip is the mechanism whereby the intra-state movement of notified goods is mandatorily reported on the official website of the Department. Now after this order, E-Trip is not required to be done in respect of any item. 

The order is reproduced herebelow:
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Due date of efiling of VAT return for Q3 of 2014-15 extended

0 comments Thursday, January 29, 2015
GOVERNMENT OF PUNJAB

 DEPARTMENT OF EXCISE & TAXATION
 
PUBLIC NOTICE
 
KIND ATTENTION: DEALERS/CHARTERED ACCOUNTANTS/LAWYERS/OTHER STAKEHOLDERS 

This is to inform all the concerned that the last date of e-filing of VAT-15 for the 3rd Quarter of 2014-15 has been extended till 5 th February, 2015. 

Dated: 29th January, 2014.

 Excise & Taxation Commissioner, Punjab
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Mere cash deposits of more than 10 lakhs cannot be a reason to reassessment

0 comments Sunday, January 25, 2015
The assessee had deposited cash in excess of Rs 10 lakhs in his saving bank account but he had not filed return of income. The AO reopened the assessment of assessee, as he had reason to believe that there was an escapement of income of Rs 10 lakhs. 
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Revised return can be filed even after issuance of intimation u/s 143(1)

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The Calcutta High Court has held that issue of intimation under section 143(1) cannot amount to completion of assessment under section 139(5) disabling assessee from filing a revised return. 
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Punjab VAT-Rate of tax on cranes and earth moving equipments reduced to 5.5%

0 comments Thursday, January 22, 2015
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Exemption from payment of advance VAT to works contractors to be allowed-instructions

0 comments Wednesday, January 21, 2015
The Excise and Taxation Commissioner, Punjab has issued instructions to grant advance VAT exemption to the works contractors whose TDS u/s 27 of Punjab VAT Act, 2005 is being deducted. 
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Works contractors are also eligible for advance VAT exemption-P&H High Court

0 comments Thursday, January 8, 2015
The Punjab & Haryana High Court  in CWP 19835 of 2014 Ayyappa Infra Projects Pvt Ltd vs State of Punjab has directed the State of Punjab to issue clarification to the effect that works contractors are also eligible for exemption from advance VAT levied u/s 6(7) of Punjab VAT Act, 2005. 
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Email ids of all important functionaries in the State of Punjab

0 comments Tuesday, January 6, 2015
The Punjab Government has notified the Email ids of all the important functionaries in the State of Punjab. The Email Ids includes ids of all Financial Commissioners, Principal Secretaries, Administrative Secerataries and Head of the Departments. 
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Kisan Vikas Patra Rules, 2014

0 comments Sunday, January 4, 2015
Kisan Vikas Patra Rules, 2014

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 23rd September, 2014
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CBDT directs for limited scrutiny in cases selected under CASS

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Central Board of Direct Taxes vide instruction no. 7/2014 dated 26.09.2014, by virtue of its powers under section 119 of the Act, in suppression of earlier instructions/ guidelines on this subject, hereby directs that tile cases selected for scrutiny during the Financial Year 2014-2015 under CASS, on the basis of Either AIR data or CIB information or for non reconciliation with 26AS Data, the scope of enquiry should be limited to verification of these particular aspects only. 
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Efiling of monthly return under Punjab VAT made compulsory

0 comments Friday, January 2, 2015
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE AND TAXATION
PUBLIC NOTICE
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E-trip under Punjab VAT made compulsory for paper boards sold by manufacturers

0 comments
Excise and Taxation Commissioner, Punjab has notified paper board sold by manufacturers in the State of Punjab for the purose of Rule 64-A of Punjab VAT Rules, 2005. Rule 64-A compulsory reporting of intra-state transactions through virtual information collection centre on the official website of the Department i.e. www.pextax.com. It is also popularly known as E-trip.
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Tribunal ordered strict compliance of Rule 71 of Punjab VAT Rules, while filing appeals

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The Hon'ble Punjab VAT Tribunal has ordered for the compliance of Rule 71 of Punjab VAT Rules, 2005 while filing appeals under Punjab VAT Act, 2005. The Punjab VAT Tribunal in appeal No. 450 of 2013 has ordered that no appeal in furture will be entertained if the same is filed with deficiencies in violation of Rule 71 of Punjab VAT Rules, 2005.
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