Shocking amendment in section 66-Analysis of Punjab VAT (Second Amendment) Act, 2013-part 4

0 comments Monday, December 2, 2013
Amendment in section 51- Person incharge included transporters: Section 51 which relates to the road side checking law has been amendmed so as to provide that the person incharge of goods shall also include the carrier of goods or agent of transport company or booking agency or any other bailee for transportation and in-charge or owner of a bonded warehouse or of any other warehouse.
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Analysis of Punjab Value added Tax (Second Amendment) Act, 2013 - part 3

0 comments Sunday, December 1, 2013

In a series of articles on the analsyis of Punjab Value added Tax (Second Amendment) Act, 2013 this is a third article in which the major amendments under Punjab VAT Act, 2005 are discussed herebelow:

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Analysis of the amendments under Punjab VAT(Second Amendment) Act, 2013 - part-2

0 comments Saturday, November 30, 2013
In continuation of my earlier article Analysis of major amendments in Punjab Value Added Tax (Second Amendment) Act, 2013, herebelow the remaining provisions of the said Act are being discussed and analysed.

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Analysis of the major amendments under Punjab VAT (Second Amendment) Act, 2013 - Part-1

0 comments Thursday, November 28, 2013
The Punjab Value Added Tax (Second Amendment) Act, 2013 (Punjab Act No. 38 of 2013) has brought about major and very important changes under the Punjab VAT Act, 2005. All the changes are disucssed and analysed herebelow for the benefit of all blog readers:
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THE PUNJAB VALUE ADDED TAX (SECOND AMENDMENT) ACT, 2013

0 comments Tuesday, November 26, 2013

Notification No. 49-Leg/2013.- Dated 15th November, 2013
The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 15th Day of November, 2013, is hereby published for general information:-
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Due date for efiling of VAT return for Qtr2-2013-14 extended to 05.11.2013

0 comments Wednesday, October 30, 2013
PUBLIC NOTICE
 
ATTN:-TAXABLE PERSONS, ADVOCATES, CHARTED ACCOUNTANTS, COST
ACCOUNTANTS.
 
Due to heavy rush on online efiling and on demand by the trading community the
date of efiling of returns for the second quarter i.e. 01.07.2013 to 30.09.2013 is extended
upto 5th of November 2013.
 
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Punjab to have single-stage VAT regime

0 comments Wednesday, October 23, 2013
In a major relief to traders, the Punjab Government has decided to remove the multiplicity in Value Added Tax (VAT) on all commodities by imposing it right at the manufacturing level. The move will not only simplify the taxation procedure, but also eliminate the practice of doing business without proper accounting of sales.

The decision to implement the single-stage taxation regime was taken by the state Cabinet yesterday. It decided to bring a Bill to this effect in the forthcoming session.

Once cleared by the Assembly, the government would ask all major manufacturers selling their goods across the state to charge entire VAT component from the distributor itself. The simplification of tax structure is the main thrust of the new trade policy, which would be announced on November 14.

Of the 2.25 lakh registered VAT dealers in Punjab, only 900 pay more than Rs 1 crore as VAT in a year. A large number of dealers do not pay any VAT, by not accounting sales in their books.
With the new taxation structure in force, Punjab will be amongst the few states to have brought in a single-stage taxation regime. Deputy Chief Minister Sukhbir Singh Badal said the step would go a long way in ensuring that all trade in Punjab was accounted for.

 Simplifying things
* The new taxation regime will provide that VAT is imposed right at the manufacturing level

* The manufacturers will pay the entire VAT and then collect it from the remaining people in the supply chain (ie distributors, wholesalers and retailers etc.)

* Besides simplifying the taxation procedure, it will also eliminate the practice of doing business without proper sales accounting

Source: The Tribune
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Public Notice on advance VAT under Punjab VAT Act, 2005

0 comments Monday, October 7, 2013
Excise and Taxation Department has issued a public notice on 06.10.2013 regarding recently levied advance VAT under Punjab VAT Act, 2005. This public notice specify that 100% adjustment of advance VAT is available against tax liability of a taxable person at the time of filing of his return. This public notice tends to suggest the intention of the legislature that no reversals from advance tax will be made in case of inter-state stock transfer or manufacturing of tax free goods or u/s 13(5) where ITC on certain goods is barred.

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Goods on which advance VAT under Punjab VAT Act, 2005, is imposed

0 comments Sunday, October 6, 2013
Punjab Government has notified goods u/s 6(7) of the Punjab VAT Act, 2005 on which Advance VAT will be recovered. Section 6(8) of the Punjab VAT Act, 2005 earlier considered Entry Tax as deemed advance VAT. 
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Entry Tax withdrawn, Advance VAT levied

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Punjab Government has withdrawn the Entry tax under the Punjab Tax on Entry of Goods into Local areas Act, 2000, which was under judicial scrutiny and was cause of continous litigation between the Government and the VAT dealers across the State.


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Procedure for payment of Advance Tax under Punjab VAT Act, 2005

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GOVT. of PUNJAB
Excise and Taxation Department
PUBLIC NOTICE
Dated: 4th October 2013
Attention: All VAT Dealers, Transporters, Chartered Accountants and Advocates

Subject: Payment of Advance Tax
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F form under CST Act can cover transactions of a period more than one month

0 comments Saturday, September 21, 2013
Calcutta High Court in Cipla Limited vs Deputy Commissioner, Commercial Tax reported as VSTI 2013 Vol. 17 B-509 has held that There is nothing in Rule 12(5) of CST (R&T) Rules which could be construed to vitiate a declaration form i.e "F" form on a ground that such declaration form covered transactions for a period of more than a month.
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Extension of time limit for assessment by a public notice on the website is not valid

0 comments Thursday, September 19, 2013
Punjab VAT Tribunal in Olam Agro India Limited vs State of Punjab (2013) 21 STM 128 has held that extension of time limit u/s 29 of Punjab VAT Act, 2005 from 3 years to 6 years, for making assessment of a person, by giving a public notice on the website of the department, is not valid extension.
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Monetary limit for audit under Punjab VAT Act, 2005 raised to one Crore from Fifty lacs

0 comments Tuesday, September 17, 2013
GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE AND TAXATION

(EXCISE AND TAXATION-II BRANCH)

NOTIFICATION

The    September, 2013

No. .                                     - In exercise of the powers conferred by sub-section (1) of
section 70 of the Punjab Value Added Tax Act, 2005 (Punjab Act NO.8 of 2005), and all
other powers enabling him in this behalf, the Governor of Punjab is pleased to make the
following rules further to amend the Punjab Value added Tax Rules, 2005, namely:-

RULES

1 (1) These rules may be called the Punjab Value Added Tax ( Amendment) Rules, 2013.

(2) They shall come into force on and with effect from the date of their publication in the Official Gazette.

2 In the Punjab Value Added Tax Rules, 2005 in rule 41, for the words "fifty lacs",the words "one crore" shall be substituted.


D.P.REDDY,
Financial Commissioner Taxation and
Secretary to Government of Punjab,
 Department of Excise and Taxation.
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Processing fee amount revised under Punjab VAT Rules, 2005-certain points

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Punjab Government has revised the amount of processing fee leviable under rule 40-A of the Punjab VAT Rules, 2005. Rule 40-A earlier envisages payment of  annual processing fee of Rs. 800/- by every taxable person under the Punjab VAT Act, 2005.

 Now the different amount of processing fee have been defined for different persons based upon the criteria of payment of taxes by them and their turnover.
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Notification for Extension of date for receipt of ITR-Vs in CPC, Bengaluru, for the cases of AY 2012-13 and 2011-12 received in e-filed in FY 2012-13.

0 comments Sunday, September 15, 2013
There are many taxpayers who have uploaded their Income Tax Returnselectronically (without digital signature Certificate) for A.Y. 2011-12 [filed during F.Y. 2012-13] and for ITRs ofA.Y. 2012-13 [filed on or after1.4.2012], but have either not filed the corresponding ITR-V or have filed it with the local Income-tax office.
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Plywood exempted from E-trip under Punjab VAT act, 2005

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As the news has been coming  that a lump sum tax scheme under Punjab VAT Act, 2005 for plywood industries will be soon notified, the plywood therefore has been exempted from the list of specified goods for the purpose of e-trip.

E-trip is a mechanism whereby one has to report the intra-state i.e within state transactions of specified goods and specified monetary limits only on the website of the Excise and Taxation Department, Punjab.
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Clarifications on E-trip and E-icc

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The Commissioner Excise and Taxation Punjab has issued a clarificaton that "Goods and Materials obtained from cutting of old ships and boats" as well as the :heavy melting scrap" are covered under the entry "irobn and steel" for the purposes of E-trip.

It also has been clarified that only the goods covered in order dated 17-07-2013 relating to e-trip and e-icc are the only goods for e-trip and e-icc needs to be done.
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Overview of E-trip and E-ICC under Punjab VAT Act, 2005

1 comments Monday, September 2, 2013
What is E-Trip and E-ICC:  E-trip and E-ICC has come into force w.e.f 01-08-2013 in Punjab. E-trip is the reporting of intra-state and E-ICC is the reporting of inter-state transactions meant for trade under section 51 of Punjab VAT Act. 2005 on the virtual information collection centre on the official website of the Excise & Taxation Department, Punjab i.e www.pextax.com.

 E-trip and E-ICC have been implemented under Rule 64-A, 64-B and 64-C read with Rule 2(hh) of the Punjab VAT Rules, 2005. Although such E-trip and E-ICC system has been implemented w.e.f 01-08-2013 but by public notice dated 01-08-2013(Public notice of 01-08-2013 can be downloaded at the link available at the end of this article) the dealers were allowed time for upgrading their system for the purpose of e-trip till 01-09-2013 and till that time it was assured that no penalty will be levied u/s 51 for not doing E-trip or E-ICC.

 Since 01-09-2013 has arrived therefore certain following points relating to E-trip and E-ICC are discussed heerbelow for the all concernds:

 When E-Trip is required to be done: E-Trip is required to be done not in all transactions of movement of goods within State but in case of  transactions of specified goods of specified monetary limit only. 

 Since E-trip is a reporting of intra-state movement oof goods within State on the virtual information collection centre i.e a compliance u/s 51 of the Punjab VAT Act, 2005 therefore only those transactions of intra-state movement of goods within State is required to be reported under E-trip system, which are meant for business only, as section 51 has applicability only in relation to transactions which are meant for Business.

 Thus if an intra-state transaction is meant for personal use and not for business and trade then E-trip of such transaction would not be required.

 Specified Goods and monetary limits in which E-trip is required:
Sr.No.
Name of the Specified Goods
Minimum Value
1
Cotton
Rs.50,000
2
Sarson
Rs.50,000
3.
Plywood
Rs.50,000
4.
lron and Steel (excluding Scrap)
Rs.50,000
5.
Yarn
Rs.50,000
6.
Vegetable Oil (edible and non edible)
Rs.50,000


It has been clarified in Public Notice dated 01-08-2013 that “Forging and Casting” items are not included
in the item “Iron & Steel” specified under Rule 64-A and 64-B.

 After reporting the transaction under E-trip in form VAT-12-A, an electronic receipt would be generated which mandatorily needs to be carried along with the goods during their movement within State. E-Trip is required to be done before putting the goods in transit within the State.

 Any transaction covered by multiple invoices with total value of all invoices exceeding the prescribed threshold, where the consignor & the consignee are the same and the goods are transported through the same vehicle shall be considered a single transaction for the purpose of minimum sale.
Maximum transition time prescribed under Rule 64-A: Rule 64-A(3) of Punjab VAT Rules gives power to Commissioner to specify maximum transition time for delivery of specified goods from one destination to the other destination. The maximum transition time has been prescribed as below:
For distance upto 100 Kms
6 Hours
For distance upto 200 Kms
10 Hour
For distance above 200 Kms
14 Hours

It has been further clarified in Public Notice dated 01-08-2013 that in case goods are being transported through a transporter, the requirements of e-Trip/e-ICC will not be applicable when the goods are being transported from the premises of the dealer to the transporter. In this case, these requirements shall be applicable when the movement of the goods starts from the premises of the transporter.

 When E-ICC is required to be done: Reporting of inter-state transaction on the virtual information collection centre by a system of E-ICC is required to be done in two cases i.e in case of export of goods outside the state of Punjab and other is import of goods into the State of Punjab from outside by air, railway or dry port.

 E-ICC in case of export of goods outside the State:Rule 64-B deals with the procedure for furnishing information under E-ICC system relating to export of goods outside the State of Punjab by any mode of transition. An owner or person incharge of the specified goods before putting the same into transit for export out of the State, for trade or commerce by any mode of transition has to report the information relating to such export on the virtual ICC in form VAT-12.

 The specified goods for the purpose of E-ICC in case of export of goods outside the State are as follows:
Sr.No.
Name of the Specified Goods
Minimum Value
1
lron and Steel
Rs.50,000
2
Hosierv dnd readymade garments
Rs.50,000
3.
Pipes of all kinds i.e. MS Pipe, Gl Pipes, ERW Pipes, Plastic Pipes etc
Rs.50,000
4.
Rice
Rs.50,000
5.
Nut-bolt /Fastener
Rs.50,000

It has been clarified in Public Notice dated 01-08-2013 that “Forging and Casting” items are not included in the item “Iron & Steel” specified under Rule 64-A and 64-B.

 Thus E-ICC is applicable only on the goods and monetary limits of a bill specified for this purpose as  mentioned in the above table.In case of other goods or specified goods where bill value is less than the monetary limit of  Rs. 50000/- , there is no need for need for reporting the transaction on E-ICC, rather the same will be recorded at the Information Collection Centre established at the borders of Punjab as and when goods reach such ICC. 

 It has also been clarified in public notice dated 01-08-2013 that any transaction covered by multiple invoices with total value of all invoices exceeding the prescribed thresh-hold, where the consignor & the consignee are the same and the goods are transported through the same vehicle shall be considered a single transaction for the purpose of minimum sale.

 Maximum transition time for E-ICC: The maximum transition time for delivery of goods from place of departure to the nearest ICC falling enroute towards destination while exiting the State has been specified as under:
For distance upto 100 Kms
6 Hours
For distance upto 200 KMs
10 Hour
For distance above 200 Kms
14 Hours

However it should be noted that it has been clarified in public notice dated 01-08-2013 that for the goods being sent outside the State i.e. goods covered under Rule 64-B, the condition of maximum time limit to leave the State shall not apply.

 E-ICC in case of import of goods into State of Punjab: If a person imports any goods into the State of  
Punjab either by air or railways or by dry ports then as per Rule 64-C he needs mandatorily to report the said transaction on the virtual ICC in form VAT-12, before taking the delivery of such goods or before transition of such goods by road, whichever is earlier.

 That means import of all goods by railway or air or by dry port will have to be reported on E-ICC and such reporting will have to be done before taking the delivery of such goods or before transition of such goods by road, whichever is earlier.

 It should be noted that E-ICC system is applicable on the specified goods and monetary limit in case of Rule 64-B, but in case of Rule 64-C system of E-ICC is applicable on all the goods irrespective of nature of goods or the monetary limit.

 username and passwords for E-ICC and E-trip: If a person wants to start reporting on E-ICC, he will have to get username and password for the same from the local jurisdictional officer. After getting the same, one can log on to the website of the Department i.e. www.pextax.com at the links available for E-ICC.

 For E-Trip the user name is the TIN of the person and the password which is now working seems to be the old password for the efiling of returns which was used by such person before migrating its TIN on a new system namely COTIS as existing on the new website. 

 However it has been clarified by the Department on a public notice dated 01-08-2013 that Transporters will be able to submit data on behalf of the dealers on the website of the department. 
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ITC on capital goods not to be reduced to 4% when tax on the same is paid at 12.5%-Punjab VAT Tribunal

0 comments Friday, August 30, 2013
Punjab VAT Tribunal has held in L.S. Rice Exports Pvt. Ltd. vs State of Punjab (2013) 45 PHT 597 (PVT) that reduction of input tax credit on capital goods from 12.5% to 4% when the purchases made by the assessee are on 12.5% is not sustainable. So the assessee is entitled to full ITC.
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