Disallowance of input tax credit on the ground that seller is bogus or cancelled dealer

0 comments Tuesday, June 10, 2014
The system of VAT was introduced in the sales tax law to bring more transparency, efficiency, to remove tax cascading etc. The difficulties which may arise in any system comes to picture only when the system is practically implemented. 
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Constitutional validity of section 39-A of Punjab VAT Act, 2005

0 comments Saturday, May 17, 2014
As per section 39A of Punjab VAT Act, 2005, the Punjab VAT Refund Fund has been constituted and the amount of tax collected as Advance Tax under Section 6(7) shall be credited directly into the said Fund. It has been provided that the Fund shall be maintained and operated by the Department of Excise and Taxation in such manner as may be prescribed. It has also been provided that after allowing the refund claims from the Fund, the balance amount shall be deposited in the Consolidated Fund of the State as may be prescribed. 
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CBDT's clarification on allowance of depericiation in BOT contracts

0 comments Wednesday, April 30, 2014
CIRCULAR NO. 9/2014 [F.NO.225/182/2013/ITA.II], DATED 23-4-2014
It has come to the notice of the Board that disputes have arisen as to whether the expenditure incurred on development and construction of infrastructural facilities like roads/highways on Build-Operate-Transfer ('BOT') basis with right to collect toll is entitled for depreciation under section 32(1)(ii) of the Act or the same can be amortized by treating it as an allowable business expenditure under the relevant provisions of the Income-tax Act, 1961 ('Act').
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Input Tax Credit w.e.f 01.04.2014 under Punjab VAT Act, 2005

2 comments Monday, April 28, 2014
Input tax credit is a concession granted by the State Government against the output tax liability on the sale or purchase of goods within the State jurisdiction. To avail such concession one has to fullfill the conditions imposed by the statue subject to which such concession is available.

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Advance tax on five new items levied under Punjab VAT Act, 2005

0 comments Sunday, April 6, 2014
Punjab Government has levied Advance VAT on 5 new items w.e.f 07.03.2014 these items are as follows:
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Further amendments in items taxable at single stage under Punjab VAT

0 comments Tuesday, April 1, 2014
Notification No. S.O. 23/P.A.8/2005/S.8/2014.- Dated 25th March, 2014

Whereas the State Government is satisfied that circumstances exist, which render it necessary to take immediate action in public interest;

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Supreme Court vacated stay on section 62(5) of Punjab VAT Act, 2005

0 comments Friday, March 14, 2014
Supreme Court of India in Amrit Banaspati Company Limited vs State of Punjab WP(c) 69 of 2013 has vacated stay on implementation and operation of section 62(5) of Punjab VAT Act, 2005, which was granted on 31.01.2014.

However the Supreme Court has stated in its order that there  shall not be any coercive steps for recovery of the amount in question. 

The record of proceedings in the said case is available on supreme court website which is made available herebelow for all concerned.
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Representation to Punjab Govt. on restriction of ITC on iron and steel under Punjab VAT

0 comments Thursday, February 27, 2014

I had prepeared representation on behalf of Iron and steel industry in Punjab, which has been filed with the Punjab Government for withdrawl of latest notification dated 01.02.2014 regarding restriction of input tax credit on iron and steel goods to only two stages and also on closing stock as existing on the date of reduction of tax from 4.95% to 2.75% on iron and steel goods.

The representation covers the difficulties faced by the industry due to the above notification and some light has also been thrown on the constitutional validity of amendment covered under the said notification.
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Implications of newly added Rule 21(8) of Punjab VAT Rules, 2005

0 comments Sunday, February 16, 2014
Recently Rule 21(8) of Punjab VAT Rules 2005 was introduced which provided that where some goods as input or output are lying in stock of a taxable person and where rate of tax is reduced from a particular date, then from that date, input tax credit shall be admissible to the taxable person on sale of goods lying in stock or on using the goods as input for manufacturing taxable goods, at the reduced rate.
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Rahat for small traders in small towns-Punjab Small Traders Rahat Scheme, 2014

0 comments Friday, February 14, 2014
Punjab Government u/s 8-A of the Punjab VAT Act, 2005 has legislated Punjab Small Traders Rahat Scheme, 2014. This scheme has been legislated for the retailers of small towns which falls in the Class-II and Class-III categories notified seperately for this purpose.
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Punjab & Haryana High Court also stays section 62(5) of Punjab VAT Act, 2005

0 comments Wednesday, February 12, 2014
Recently Supreme Court in Amrit Banaspati Company Pvt Ltd vs State of Punjab WP(c) No. 69 of 2014 has stayed the implementaion and operation of section 62(5) of Punjab VAT Act, 2005 which provides for pre-deposit of 25% of additional demand before entertainment of any appeal.
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Outstanding creditors cannot be added to income u/s 41(1) even if such creditors are non traceable

0 comments Tuesday, February 11, 2014
 Section 41(1) of the Act would apply in a case where there has been remission or cessation of liability during the year under consideration subject to the conditions contained in the statute being fulfilled. Additionally, such cessation or remission has to be during the previous year relevant to the assessment year under consideration.
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Due date of fiing ITR-V for A.Y. 2009-10,10-11 & 11-12 in refund cases extended to 31.03.2014

1 comments
Circular No.. 04/2014, Dated : February 10, 2014

Subject – Non-Filing of ITR-V in returns with refund claims-relaxation of time- limit for filing ITR-V and processing of such returns -regarding.
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RAHAT scheme under Punjab VAT to be notified soon for traders of small town

0 comments Sunday, February 9, 2014

Excise and taxation inspectors (ETIs) would not be allowed to check commercial premises of traders in at least 71 towns of Punjab after February 13 as the state excise and taxation department is launching a new scheme under which traders would have an option to pay value added tax (VAT) once a year in proportion to their annual income. 
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Supreme Court stays section 62(5) of Punjab VAT Act, 2005-No need to pre-deposit 25% for filing appeal

0 comments Tuesday, February 4, 2014
In a very important case namely Dishnet Wireless Ltd vs The Commercial Tax Officer SLP No. 37727/2013 and in WP(c) No. 69 of 2014 namely Amrit Banaspati Limited vs State of Punjab Supreme Court has granted stay on the operation and implementation of section 62(5) of Punjab VAT Act, 2005.
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Reduced rate of tax now made applicable from 01.02.2014- stock as on 31.01.2014 to be declared

0 comments Saturday, February 1, 2014
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. 
 
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VAT on Cigarettes and Cigars in Punjab reduced to 20.5%

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PUNJAB GOVT. GAZ. (EXTRA), JANUARY 29, 2014    195


(MAGHA 9, 1935 SAKA)
  
GOVERNMENT OF PUNJAB
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VAT on milk and wheat reduced in certain cases under Punjab VAT

0 comments
Punjab Government has reduced VAT on milk when purchased for manufacturing taxable goods and on wheat when purchased for processing, from 6.05% to 3.3% (after adding surcharge of 10%). Wheat not to be used for processing purpose will continue to attract VAT @ 6.05%. Relevant notification is produced herebelow:
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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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