Monday, September 17, 2012

PUNJAB VAT RATES CHANGES 03.09.12 NOTIFICATIONS VAT RETURN PROCESSING CHARGES


on Monday, September 17, 2012

Punjab Govt. has recently increased the VAt rate across the board by half percent. Further Rs 800/- annual vat return processing charges has also been imposed wef from current financial year and payable with Vat return for second quarter each year.Notification for Vat rate charges wef 03.09.2012 in Punjab and other changes wef 05.09.2012 is given below for your ready reference .

Update :Punjab entry  Tax withdrawn by Punjab Govt wef 04.10.2013

1. Schedule " B " Items are covered under 5.5 % rate from 5.0 rate earlier. 10% surcharge is remain as it is .

The 3rd September, 2012 

No. S.0 65/P.A.8/2005/S.8/2012 .-Whereas the State Government is satisfied that the 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 amendment in Schedule—B appended to the said Act, with immediate effect, by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

"in the said Schedule for the heading "LIST OF GOODS TAXABLE @ 5 PERCENT", the following heading shall be substituted, namely;- 


"LIST OF GOODS (EXCEPT DECLARED GOODS) TAXABLE @ 5.5 PERCENT

2. Schedule " C1 " Items are covered under 4.5% rate from 4.00 rate earlier. 

The 3rd September, 2012 

No. S.0 671P.A.8/2005/S.8/2012 .-Whereas the State Government is satisfied that the 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 amendment in Schedule—C-1 appended to the said Act, with immediate effect, by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

In the said Schedule, for the heading, the following heading shall be substituted, namely:- 

"LIST OF GOODS (OTHER THAN WHEAT, PADDY AND RICE) @ 4.5 PERCENT.". 


3. Change in schedule E

The 3rd September, 2012 

No. S.0 691P.A.8/2005/S.8/2012 .-Whereas the State Government is satisfied that the 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 amendment in Schedule--E appended to the, said Act with the following Schedule, with immediate effect, by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

For the said Schedule the following Schedule shall be substituted, namely:- 

'SCHEDULE - E

(See section 8) 

LIST OF GOODS TAXABLE AT SPECIAL RATES


1. Diesel other than premium diesel 8.75 Percent 

Explanation. - The premium diesel shall mean the branded diesel which is superior to the diesel. 

2.Petrol 28 Percent 

3. Plastic granules, plastic powder and 8.5 Percent master batches

4. Change in schedule F Rates increased from 12.5 % to 13 % .Surcharge 10% remains as it is.

The 3rd September, 2012 

No. S.0 701P.A.8/2005/8.8/2012 .-Whereas the State Government is satisfied that the 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 amendment in Schedule—F appended to the said Act, with immediate effect, by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

In the said Schedule, in the heading, for the figures, sign and words 

"12.5 PERCENT", the figures and words "13 PERCENT' shall be substituted. 

5. withdrawal of vat on Sugar including khandseri 

The 3rd September, 2012 

No. 5.0 641P.A.812005/S.8/2012 .-Whereas the State Government is satisfied that the 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 amendment in Schedule—A appended to the said Act, with immediate effect by dispensing 
with the condition of previous notice, namely:- 

AMENDMENT 

In the said Schedule—A, after serial No. 79, the following serial No. and entry relating thereto shall be added, namely:- 

"80. Sugar including Khandsari.".


6. Amendment in schedule B Item no 169 deleted 
The 3rd September, 2012 

No. S.0 66/P.A.8/2005/S.8/2012 .-Whereas the State Government is satisfied that the 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 amendment in Schedule—B appended to the said Act, with immediate effect by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

In the said Schedule, serial No. 169 and entry relating thereto shall be omitted.

7. Annual processing fee applicable on vat return 800/- per year.

The 5th September, 2012 

No. G.S.R.451P.A.8/2005/S.70/Amd.(44)/2012.- 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 (Third Amendment) Rules, 2012. 

(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, after rule 40, the following rule shall be inserted namely:- 

"40-A. Annual processing fee.- Every taxable person shall pay annual processing fee of rupees eight hundred in the month of October every year and proof of the payment thereof shall be attached alongwith the quarterly return.".

8. Sales made to  canteen store department (CSD) is exempted from VAT Item no 43 added in schedule A 

The 5th September, 2012 

No. S.O.711P.A.8/2005/S.8/2012. -Whereas the State Government is satisfied that the 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 amendment in Schedule—A appended to the said Act, with immediate effect, by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

1 In the said Schedule, for serial No. 43 and entry relating thereto, the following shall be substituted, namely:- 

"43. Sales made to Canteen Stores Department subject to furnishing, of a certificate duly signed and stamped by the officer authorized to make purchase certifying that the goods purchased are meant for sale to serving military personal and ex-serviceman directly or through unit run Canteens.".

9. Sales made by  canteen store department (CSD) is covered under VAT 5.5 % Item no 100A added in schedule B
The 5th September, 2012 

No. S.0.731P.A.8/2005/S.8/2012. -Whereas the State Government is satisfied that the 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 amendment in Schedule -B appended to the said Act, with immediate effect, by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

In the said Schedule, for serial No. 100-A and entry relating thereto, the following shall be substituted, namely:- 

"100-A. Sales made by Canteen Stores Department to serving military personal and ex-servicemen directly or through unit run Canteens.". 

10.Shoes up to Rs 250/- is covered in schedule B Now ,SR no 84 and 139 deleted from schedule B

The 5th September, 2012 

NO. S.0.721P.A.8/2005/S.8/2012.- 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 n- ake the following amendment in Schedule —B appended to the said Act, with immediate effect by dispensing with the condition of previous notice, namely:- 

AMENDMENT 

"In the said Schedule—B, 

(i) for serial number 72 and entry relating thereto , the following shall be substituted, namely:- 

"72, Shoes including moulded plastic footwear, hawai chappals and straps thereof, Plastic footwear or Hand crafted footwear the price whereof does not exceed rupees 250/-." ; 

(ii) Serial No. 84 and the entries relating thereto shall be omitted; and 

(iii) Serial No. 139 and the entries relating thereto shall be omitted.


11. Tax rate changes in case of Brick Klin

The 5th September, 2012 

No. S.0.741P.A.8/2005/S.8-A/2012.-Whereas the Governor of Punjab is satisfied that it is expedient so to do in the public interest; Now, therefore, in exercise of the powers conferred by section 8-A of the Punjab Value Added Tax Act, 2005 (Punjab Act No. 8 of 2005), and other powers enabling him in this behalf, the Governor of Punjab is pleased to make the following amendment in the Government of Punjab, Department of  Excise and Taxation, Notification No. S.O. 28/P.A.8/ 2005/S.812008, dated the 16th April, 2008, namely:- 

AMENDMENT 

In the said notification, for the Table, the following shall be substituted 

namely:-
"TABLE
Sr. Capacity of kiln
No.
Category
Lump sum tax
payable in lieu of tax
1.
Brick-kiln of capacity of more
than 33 number of Ghori
+A
Rs. 4,48,000/- plus Rs.
15,600/- per additional
Ghori above 33 Ghori
2.
Brick-kiln of capacity of 28 to
33 number of Ghori
A
Rs. 4,48,000/-
3.
Brick-kiln of capacity of 22 to
27 number of Ghori
B
Rs. 3,50,0001-
4.
Brick-kiln of capacity of below
22 number of Ghori
C
Rs. 2,80,000/-
5.
Brick-kiln not fired during the year
ending 31th March in which stock
in and outside the kiln as on
1st April last does not exceed five
lakhs bricks of all categories.
D
Rs. 70,000/-

Note:- If a kiln is designed to be fired at two places, the rate of lump sum tax payable by the owner of such kiln shall be double of the aforesaid rates." 

12 : Rate defined under Punjab Tax Luxuries ACt,2009 has been doubled to 8 % from earlier 4 %

The 5th September, 2012 

No. S.0.75/P.A.4/2009/S.4/2012.-In exercise of the powers conferred by section 4 of the Punjab Tax on Luxuries Act, 2009 (Punjab Act No. 4 of 2009), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to make the following amendment in the Government of Punjab, Department of Excise and Taxation, Notification No. S.0.85/P.0.4/ 2008/S.4/2008 dated the 28th November, 2008, namely :- 

AMENDMENT 

In the said notification, for the words "four per cent", the words "eight percent" shall be substituted

Update :Punjab entry  Tax withdrawn by Punjab Govt wef 04.10.2013

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  1. i do not know much about punjab VAT. But the processing charge imposed on VAT return is highly colonial in nature as dealers are providing services to government by collecting taxes on their behalf.

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    Replies
    1. We do agree with you . It is a most innovative idea that Punjab has adopted to raise revenue . In our view process must be simpler so that it will encourage small trader to comply voluntarily .Instead by introducing this vat processing charges ,small traders /marginal trader will opt out from Vat registration and which will lead to less revenue and encourages the wrong method and less compliance.

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  2. ideally the govt. should give some kind of incentive for filing the return to the assesse as they are collecting the tax for govt. however, the govt. is doing reverse. the reasons and logics are best known to the govt. the govt. is thinking for administrative cost but not for compliance cost.unfortunately,enen after the VAT, the govt. have prescribed so many rates and surcharge which is. ofcourse against VAT principle. better to replace such system with GST without further delay.

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