Punjab
Excise & taxation department has issued a notification under the Punjab Vat
Act 2005 which is applicable with effect from 01 Jan 2014, but strange rather
shocking Excise & Taxation Department has issued the notification which
reflects that tax was levied at the first stage that is in the hand of
manufacturers and importers in the state of Punjab and after that no tax will
be charged in the hands of distributors, wholesalers or retailers. It clearly
infers that this notification is not as per the spirit of the Punjab Vat Act
2005 as the scheme of Punjab Vat Act 2005 no where permits the levy at first
stage.
EFFECTS OF THE
NOTIFICATION:
GOODS
subject to the tax @ 14.5% & 22.5% have been notified and the surcharge at
the rate of 10% will be separately leviable in terms of section 8-B of the
Punjab Vat Act 2005 which ultimately resulted in increase of tax from 14.5% to
15.95% and from 22.5% to 24.75% which clearly reflects that with every sunrise
Excise & taxation department is saddling the assesses with heavy tax
liability without giving any prior notice as required under section 8(3) of The
Punjab Vat Act 2005.
The
Copy of the notifications is attached below by virtue of which commodities
mentioned in the Schedule E from serial no 15 to 20 are subject to tax at first
point of sale in the hands of manufacturer or first importers stage at the
rates specified in the notification reflected in in Schedule E appendix to
Punjab Vat Act 2005, here it is pertinent to point out that subsequent sale of
these commodities will be considered as tax free & by virtue of this
Schedule A which deals with tax free goods appendix to the Punjab Vat Act 2005
was also amended.
Applicability:
The
amendments made by virtue of notifications no. S.O.116/P.A8/2005/S.8/2005/S.8/2013 & S.O 117/P.A.8/2005/S.8/2013
which deals with Schedule A & E of The Punjab vat Act 2005 are applicable
from 1st January 2014.
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE & TAXATION
(EXCISE AND TAXATION-II BRANCH)
NOTIFICATION
The 13th December, 2013
S.O.116/P.A8/2005/S.8/2005/S.8/2013 – Whereas the State Government is satisfied that circumstances exist,
which render it necessary to take immediate action in public interest;
Now, therefore, in exercise of the powers conferred by
sub section (3) of section 8 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 amendments in Schedule ‘A’,
appended to the said Act, with effect from 1st January, 2014, by dispensing
with the condition of previous notice, namely:-
AMENDMENT
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In the said
Schedule ‘A’, after serial No. 85, the following serial No. 86 to 91 and the
entries relating thereto, shall be added. These commodities shall be tax free
at the wholesaler or distributor or retailer stage provided that tax has
already been paid at the first point of sale i.e manufacturer or first
importer’s stage.
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D.P. REDDY,
Financial Commissioner Taxation and
Secretary
to Government of Punjab,
Department of Excise and Taxation
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE & TAXATION
(EXCISE AND TAXATION-II BRANCH)
NOTIFICATION
The 13th December, 2013
NO S.O 117/P.A.8/2005/S.8/2013
– Whereas the State Government is
satisfied that circumstances exist, which render it necessary to take immediate
action in public interest;
Now,
therefore, in exercise of the powers conferred by sub section (3) of section 8
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 amendments in Schedule ‘E’, appended to the said Act, with
effect from 1st January, 2014, by dispensing with the condition of previous
notice, namely:-
AMENDMENT
In
the said Schedule ‘E’, after serial No. 14, the following serial No. 15 to 20
and the entries relating thereto, shall be added. These commodities shall be
taxable at the first point of sale i.e manufacturer or first importer’s stage,
at the rates specified against these entries in the Table given below, namely:-
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S.No.
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Commodity name
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Rate Of Tax
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15
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All types of Televisions,
Refrigerators, Washing Machines, Microwave ovens, Oven Toaster Grillers
(OTGs), Home Theatres, and Air Conditioners
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14.5
percent
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16
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Kitchen Appliances like
sandwich makers, tea/coffee makers, juicer mixer grinders (JMGs), hand
blenders, electric rice cookers, electric tandoors, induction cook tops,
electric chimneys, electric fryers
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14.5
percent
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17
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Cold Drinks (Aerated Drinks)
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22.5
percent
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18
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All types of personal care
products such as deodorants, shaving products, beauty soaps, shampoos, hair
oil, conditioners, serums, hair care products, tooth pastes, hand wash, body
wash, beauty products, hair gels, bathing gels, talcum powders, creams,
anti-persiprants, petroleum jellies, baby care products, skin care lotions
and after shaving lotion
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14.5
percent
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19
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All types of soaps and detergents such as washing bars and
soaps, fabric softeners, bleach, gentle wash, dish wash, color care, Neel
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14.5
percent
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20
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All types of branded or
packaged food products such as chips, wafers, chocolates, toffees, ice
creams, Corn Flacks, pasta, macroni, biscuits, frozen desserts, frozen
products, meal makers, instant soups , instant noodles, ready to eat
products, namkeens, custard powder, snacks, bakery products, baby foods etc
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14.5
percent
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D.P.
REDDY,
Financial Commissioner Taxation and
Secretary to Government of Punjab,
Department of Excise and Taxation
Will the ITC available if we get the VAT invoice for 14.30%?. Dear can you clarify that how the stock will be identified that whether it is sold from old stock or fresh stock. Is it possible that we presume that all the stock is sold from the fresh stock hence tax free, old stock remain as it is?
ReplyDeleteREgards
i learnt that Punjab has levied entry tax for t he goods coming in from 1st February 2014. l. clarify. Also if the goods are falling under category of Chapter No.90328100 , is the same entry tax is applicable.. pl.let us know
ReplyDeletenew notification on web site of vat confused and has changed the taxation system
ReplyDeleteDear sir,
ReplyDeleteA company is manufactured goods in delhi and send to goods own branch in jalandhar and goods covered under the first stage tax and tax rate is 14.50%+10%. if the jalandhar branch sold the goods to dealer whether the vat bill is issued & charged the vat from party.and if the vat invoice is issued then whether the party can claim the itc , if party not claim the itc then whether the party has to lose the vat who they will paid .
Dear sir,
ReplyDeleteA company is manufactured goods in delhi and send to goods own branch in jalandhar and goods covered under the first stage tax and tax rate is 14.50%+10%. if the jalandhar branch sold the goods to dealer whether the vat bill is issued & charged the vat from party.and if the vat invoice is issued then whether the party can claim the itc , if party not claim the itc then whether the party has to lose the vat who they will paid .