SURCHARGE-ENTRY TAX IN PUNJAB VAT FROM 05.02.2010

Punjab Govt recently increased vat rate From 4% to 5% wef 29.01.2010

Notification on this regard may be downloaded from link given below

Download notification in Pdf format

At that time(on 29.01.2010) surcharge on vat has not been imposed as proposed by two member committee but Now surcharge @10 on all Goods has been imposed .This surcharge is applicable from 05.02.2010.Now effective rate will be 5.50(5 plus 10% surcharge 0.50) and 13.75(12.50 plus 10 % 1.25) .This surcharge is also applicable where special rates are applicable like on petrol, diesel etc..
Public Notice in this regard is given below

GOVERNMENT OF PUNJAB

EXCISE & TAXATION DEPARTMENT, PUNJAB

PUBLIC NOTICE

ATTENTION: DEALERS /LAWYERS/CHARTERED ACCOUNTANTS

LEVY OF SURCHARGE / ADDITIONAL TAX

The Government of Punjab has levied Surcharge / Additional Tax @ 10% on all the goods other than those specified as Declared Goods under section 14 of Central Sales Tax Act, 1956 w.e.f. 05.02.2010. This Surcharge / Additional Tax will be charged on liquor w.e.f. 01.04.2010.

          A. Venu Prasad,

Excise & Taxation Commissioner,

                                                     Punjab.

Download Vat Notification/ordinance 2010 for 10% surcharge
Further Both this notifications are not applicable on Declared Goods covered under section 14 of the CST act 1956 , no State Govt can impose tax more than 4% on these Goods.

• You can know more about declared goods from here (Slide show by CA Vinod Kumar Gupta)
• Complete List of Declared Goods can be downloaded From hereLIST of declared Goods Under section 14 of CST act

Kindly note that the above list is applicable for all the states ,means no state can impose tax more than 4% on these Goods
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Old Post
Punjab Govt Has Increased the Vat rate given in schedule "b" Of Punjab Vat ACT 2005 from 4 % to 5% from 29.01.2010.Notification in this regard is not available on Punjab Govt site.But a public Notice ghas been published in all leading news papers that effective date of new rates is 29.01.2010.
The point to be noted in this regards are

1. The rate is applicable from 29.01.2010
2. Rate given in schedule B of Punjab Vat rate has only been changed.
3. Surcharge on vat @ 10 % has not been imposed yet as proposed by two member committee to Cabinet
4. The 5 % rate is not applicable on items which are given under declared goods category in CST act 1956.
5. The deduction under VAT Act on works contract remain the same @ 4 % .No change.

Section 14

View more presentations from RAJAN GUPTA.

one more good news that MVAT audit form 704 date has also been extended to 31.03.2010.Read complete circular from here

At the End Download Updated(03.02.2010) Calculator for Section 89(1) relief Now (direct Link)
Calculator customised for your 60% and 40 % arrears by 6th CPC.But this can also be used for any other type of arrears if arrears break up is up to Financial year 2005-06 .
Punjab Govt has imposed entry tax on Following Goods from Feb,2010.The entry tax is payable where Goods are imported out of Punjab Border.The Goods list is Given below

1. Cement -12.5%
2. Ceramics Tiles -12.5%
3. D.G sets -12.5%
4. D oiled cake and Rice Bran-4%
5. Marble-12.5%
6. Diesel-8.8%
7. Furnace Oil (FO)-2%
8. Transformers-4 %-
9. Lubricants -12.5%
10. Ply wood-12.5%
11. Flour Branded-4%
12. Vanaspati Ghee & refined oil -4% 

Notification in this regard is Given Below
The entry tax is adjustable against sale tax as Input Vat Credit

Download Complete Notification Labels: ENTRY TAX, KNOW YOUR, KNOW YOUR VAT/TIN NUMBER, PUNJAB VAT, punjab vat notification, vat rate 4 to 5 %

Thursday 4 February 2010