Surcharge on Declared goods other than Wheat and Paddy is confirmed by Punjab Government

0 comments Wednesday, April 20, 2011
I had given a clarification two days back in an article that surchage is also applicable on declared goods other than Paddy and wheat, since the ceiling rate of tax was enhanced from 4% to 5% by the Central govt in the Budget of 2011-12.

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Entry Tax on sugar in Punjab is withdrawn

0 comments Tuesday, April 19, 2011
Entry tax on sugar imported from outside the State of Punjab  which was levied in pursuance of provisions of  section 3-A of the Punjab Tax on Entry of Goods into Local Areas Act, 2000  @ 4% vide notification No No.S.O.59/P.A.9/2000/S.3-A/2007 dated 15-07-2007, has now been withdrawn by the Government of Punjab.

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Declared Goods except wheat and paddy will be taxable @ 4.4% under PVAT Act w.e.f 08/04/2011

0 comments Monday, April 18, 2011
Ceiling rate on declared goods have been enhanced from 4% to 5% by Central Govt in the Budget of 2011-12. Which follows that rate of tax on declared goods cannot exceed 5%. Rate of tax on paddy and wheat has been enhanced by the Punjab Govt from 4% to 5% by including these goods in schedule B of PVAT Act 2005.

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Download Sehaj and Sugam forms and Acknowledgment for A.Y 2011-12

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The most awaited Sehaj and Sugam Forms and Acknowledgment for A.Y 2011-12 are available for download now. These forms can be downloaded here at below links:



Acknowledgment
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Wheat and Paddy made taxable @ 5% under Punjab VAT Act 2005

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Wheat and Paddy which are declared goods  under CST Act 1956, have been added to schedule B of Punjab VAT Act  2005. The goods contained in schedule B of PVAT act 2005 are taxable @ 5%. An additional surcharge @ 10% is also applicable. But such surcharge will not be applicable on wheat and paddy since these goods are declared goods as per section 14 of CST Act 1956.

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CBDT's circular No 739 dated 25-03-1996 on section 40(b)(v) is invalid- HP High Court

0 comments Monday, April 11, 2011

Himachal Pardesh High court in an important recent Judgment namely M/s Durga Dass Devki Nandan.V Income-tax Officer, Palampur decided on 11-03-2011 has held the circular No 739 dated 25-03-1996 of CBDT as invalid. The said circular is on the issue of availability of deduction to a partnership firm in relation to remuneration available to partners of a firm u/s 40(b)(v) of Income Tax Act 1961. The said circular stated that the deduction u/s 40(b)(v) will be available only if the remuneration to partners is authorized by the partnership deed by way of specification of amount of remuneration therein or by way of quantification of remuneration.

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Finance bill 2011 enacted into Finance Act 2011 on 08-04-2011

2 comments Saturday, April 9, 2011
Finance Bill 2011 has been enacted as Finance Act 2011 on 08-04-2011. Finance Bill turns into Finance Act as and when it receives the assent of President of India. The assent has been given on 08-04-2011. This date is important to know various impliactions of the provisions of Finance bill.  

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Remand of penalty orders in appeal whether justified?

0 comments Friday, April 8, 2011
Meaning of Remand:When an appellate court sends an appealed case back to the trial court for further action, the case is said to be remanded. This usually happens if the trial judge has made an error which requires a new trial or hearing.

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Entry tax in Punjab declared ultravires by P&H High court

1 comments Wednesday, April 6, 2011



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Welcome amendment: 75% of VAT Refund under PVAT Act to be allowed on furnishing of Indemnity bond

0 comments Sunday, March 27, 2011

Section 39 of Punjab VAT Act 2005 deals with refund of tax. Some welcome changes have been made in said section by adding a new sub section 1-A to the said section which provides for provisional allowing of 75% of amount of refund claimed under PVAT Act subject to furnishing of indemnity bond in prescribed format and subject to such terms and conditions as may be prescribed.

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GST Constitution ammendment bill as introduced in Loksabha

0 comments Tuesday, March 22, 2011
GST : The Constitution (One Hundred and Fifteenth Amendment) Bill, 2011*
[BILL NO. 22 OF 2011]

A Bill further to amend the Constitution of India
Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows :—
Short title and commencement
1. (1) This Act may be called the Constitution (One Hundred and Fifteenth Amendment) Act, 2011.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision.
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Deductions from works contracts while payment of tax in lump sum scheme under Punjab VAT Act 2005

0 comments Sunday, March 20, 2011
The deductions which are allowable while opting to pay VAT on taxable turnover involved in works contracts in  lump sum scheme under Punjab VAT Act 2005 have been prescribed by adding a sub rule 6 to rule 15 of PVAT Rules.

There was no lumpsum scheme for payment of VAT on taxable turnover involved in works contracts under PVAT Act 2005 untill sub section 2-A to section 8 was added by an ordinance dated 21-10-2010. Section 8(2-A) runs as under:

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Scope of scrutiny assessment in AIR cases under Income Tax Act 1961

0 comments Thursday, March 17, 2011
Income Tax Department nowadays selects almost all cases for scrutiny assessment under section 143(2) of Income Tax Act 1961 based upon AIR(Annual Information Return) transactions or through CASS. It is sometimes seen that when a case is selected for scrutiny assessment on the basis of AIR transactions, assessing officer also sometime tend to make additions on grounds other than AIR transactions like on the basis of inadequate withdrawls etc or on the basis of estimated additions.

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Tax on lotteries under Punjab Tax on Lotteries Act, 2005 changed

0 comments Wednesday, March 16, 2011
The relavant notification is produced herebelow for ready refernce of readers:

GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE AND TAXATION

(EXCISE AND TAXATION II BRANCH)

NOTIFICATION

The March 11, 2011

No.S.O.              In exercise of the powers conferred by section 4 of the Punjab Tax on Lotteries Act, 2005 (Punjab Act No. 18 of 2005), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to make the following amendment with immediate effect, in the schedule, appended to the said Act, namely :-

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Extension of the Period of Limitation for assessment under Punjab VATAct without notice justified?

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Section 29(4) of Punjab VAT Act 2005 provides that an assessment u/s
29(2) or 29(3) may be made within three years after the date when the annual statement was filed or due to be filed, whichever is later.

Proviso to the said sub section further provides that where circumstances so warrant, the Commissioner may, by an order in writing, allow assessmnent of a taxable person or of a registered person after three years, but not later than six years from the date, when annual statement was filed or due to be filed by such person, whichever is later.

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No scrutiny assessments for senior citizens and Individual, HUFs filing ITR1 and ITR2 below 10 lakhs

0 comments Monday, March 14, 2011
CBDT in its press relaease on 14-03-2011 has stated that the cases of senior citizens more than 60 years of age and of individual and HUF taxpayers filing their return in ITR1 and ITR2 and whose income is below 10 lakhs before making deductions under chapter VIA, will not be selected for scrutiny assessments unless there is some credible information.

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Due Date for submission of statutory forms under CST Act for year 2009-10 extended to 31st March 2011 in Punjab

0 comments Thursday, March 10, 2011
The Punjab Government has extended the due date for submission of all statutory forms under CST Act (C,E-I, E-II, F forms etc)  from 20th November 2010 to 31st March 2011 by an official notification dated 16th Feburary 2011. It is here to be noted that normally the Excise and Taxation Department, Punjab normaly asks for to give all statutory forms under CST Act along with the annual statement to be filed on 20th November every year under the PVAT Act 2005.

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PROVISIONS RELATING TO CAPITAL GAIN ON CONVERSION OF CAPITAL ASSET INTO STOCK IN TRADE

0 comments Sunday, March 6, 2011
Section 45(2) of Income Tax Act deals with the cases where a capital asset is converted into stock in trade. Whenever a capital asset is converted into stock in trade by an assessee it is deemed as transfer of capital asset and attracts capital gain provisions, inspite of the fact that the ownership of such capital asset doesnot change by such conversion.

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S. 54EC relief available if cheque issued within 6 months of transfer even if cheque cleared, and bonds issued, after 6 months-Mumbai ITAT

0 comments Friday, March 4, 2011
Mumbai ITAT has held in an important case namely Kumarpal Amrutlal Doshi vs. DCIT (ITAT Mumbai)
 that relief u/s 54EC shall be available even if the bonds are issued after the requisite period of  6 months for investment, if the cheque is issued within the period of 6 months but cheque is encashed after the requisite period and bonds are also issued after the requisite period of 6 months.


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Ceiling rate on Declared goods u/s 15 of CST Act is proposed to be increased from 4% to 5% in the Budget 2011-12

0 comments Tuesday, March 1, 2011
It has been proposed in the Budget 2011-12 to increase the ceiling of 4% on declared goods under section 15 of CST Act to 5%. Currently State Governments cannot levy VAT more than 4% on declared goods.

Declared goods are those goods which are of special importance and have been defined u/s 14 of CST Act 1956. This increase has been made in view of recent increase in the VAT slab rate of 4% to 5% by many states. 

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