AMIT BAJAJ ADVOCATE

Hyderabad ITAT in Venkata Ramana Umareddy vs DCIT has held that Section 54 and section 54F are independent provisions and assessee can claim exemption under both sections for investment in same house.

The proposed changes in the Budget of Punjab of year 2013-14, regarding rates of taxes under Punjab VAT Act, 2005 on certain goods have been notified. The changes made in the rates of tax on such goods under Punjab VAT Act, 2005 will be as follows:

Punjab Government has reissued notification u/s 3(1) of The Punjab (Instituitions and other Buildings) Tax Act, 2011 leving institutional and Building tax as per the new criteria.

Punjab Government has levied entry tax on all motor vehicles purchased from outside the State of Punjab but brought into the local areas of Punjab for registration under Motor Vehicles Act, 1988. 

The tax has been levied on all the persons except the Taxable persons registered under Punjab VAT Act, 2005 and who exclusively deal in sale and purchase of motor vehicles. Thus entry tax on automobiles will not be payable by the persons registered under Punjab VAT Act and exclusively dealing in sale, purchase of motor vehicles.

Excise & Taxtaion Department, Government of Punjab has notified new VAT-2 challlan forms for VAT payments under Punjab VAT Act, 2005 and also a new Form-II(CST) challan form for CST payments under CST(Punjab) Rules, 1957. 

Section 27 of the Punjab VAT Act, 2005 has been amended to enhance the rate of Works Contract Tax i.e   tax to be deducted from payments made to contractors and sub-contractor, from 5% to 6%.

Punjab VAT Act, 2005 has been amended empowering the Excise & Taxation Commissioner, Punjab to implement electronic governance for carrying out various provisions of the Act. This may be a step towards implementation of E-Trip in Punjab.

A new Section 3-A under the Punjab VAT Act, 2005 has been inserted which runs as follows:

Dated: 25th March 2013 

Attention: All VAT Dealers, Advocates, Chartered Accountants and Cost Accountants 

Subject: Launching of e-Payment facility 

1. The Department of Excise and Taxation has over the last couple of months received observations regarding inconvenience caused to dealers in submitting payments. In the existing process the dealer has the following inconveniences:

1.1. The dealer visits Department’s office to collect Challan.

1.2. Then he fills the challan manually and visits the Bank to deposit the amount.

1.3. After successfully submitting the Payment, Dealer visits office of AETC to submit the copy of Challan.

1.4. Submission of Challan in the Department is dependent on availability of staff and can be done only during specific working hours.

1.5. Challan is manually handled and reviewed manually by the department.

1.6. Dealer has to retain photocopies of the Challan Copy submitted to the department.

1.7. Dealer Ledger is updated only after Physical Challan is submitted and verified by the department.

2. To eliminate these inconveniences and to make the payment procedure user friendly, the Department is launching an integrated e-payment facility.

3. This e-Payment facility would bring in following benefits for the dealers

3.1. Anytime, anywhere payment facility to the Dealer.

3.2. No need to visit departmental office or Bank for payment.

3.3. No need of waiting or standing in Queues.

3.4. No scope of manual error at Department’s end.

3.5. Automatic update of Dealer Ledger.

3.6. Provision to view past payment details on Portal.

3.7. Provision to view pending payment details on Portal.

3.8. Option to make payment from multiple Banks.

3.9. Automatic three way reconciliation between the Department, Bank and Treasury, hence eliminating the chances of any inconvenience due to non-reconciliation.

 4. The Department has already tied up with Punjab National Bank, ICICI Bank, HDFC Bank and Kotak Mahindra Bank for providing this facility. Dealer can start using the facility with PNB and Kotak Mahindra bank from now onwards. More Banks such as SBI, SBoP, Union Bank of India, Vijaya Bank and Axis Bank would be included in second phase. The existing facility of e-Payment through State Bank of India would continue to be available to the dealers, till it gets upgraded to the integrated e-Payment mode.

5. Dealers are requested to use and test this e-Payment facility.

6. Department intends to make e-Payment mandatory for ALL VAT payments more than Rs.25,000 with effect from 10th April 2013. Concerns, suggestions or objections, if any, may be conveyed through email to feedback.pex@gmail.com latest by 31st March 2013. 

7. The step wise procedure is provided at the end of this notice.

8. Training sessions on the procedure and facility were scheduled by the Department at six major cities of the State between 22nd January and 28th January 2013. Additionally, a detailed step-by-step training video has been uploaded, since 29th January 2013, which can be accessed at http://www.youtube.com/watchv=tgBKwk0wDHg&.

9. Suggestions, views and objections are invited from all concerned stakeholders on the proposed procedure. The suggestions, views and objections may be e-mailed to feedback.pex@gmail.com latest by 31st March 2013.

10. Thank you.

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Delhi High Court in CIT vs Ansal Housing Finance Leasing Co. Ltd has held that ALV of flats, built by assessee engaged in construction business, lying unsold, is assessable as income from house property.

Currently, when a capital asset, being immovable property, is transferred for a consideration which is less than the value adopted, assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, then such value (stamp duty value) is taken as full value of consideration under section 50C of the Income-tax Act.

 These provisions do not apply to transfer of immovable property, held by the transferor as stock-in-trade.

After this judgement now the process evolved by the Excise and Taxation Department to grant the certificates of entry tax deferment to dealers having a limited period validity will be treated as not in accordance with the interim orders of the Hon'ble High court as made in Bhushan Power and Steel Ltd vs State of punjab in CWP 15378 of 2008 and hence not valid.