Punjab Value Added Tax – Reduced rate of tax now made applicable from 01.02.2014
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.
Earlier in the notification issued as available on the official website of Punjab Government it was stated that reduced rate of tax on iron and steel would be applicable with immediate effect, meaning thereby it was applicable from the date of the notification i.e. 25.01.2014.
But now it has been stated in the public notice that it will be applicable w.e.f. 01.02.2014. The public notice issued has itself been amended.
In another public notice it has also been stated that dealers would have to declare their stock of iron and steel goods as on 31.01.2014.
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The new public notice is produced herebelow:
EXCISE & TAXATION DEPARTMENT
GOVT. OF PUNJAB
PUBLIC NOTICE
KIND ATTENTION TO:- TAXABLE PERSONS, ADVOCATES, CHARTERED ACCOUNTANTS AND COST ACCOUNTANT.
1. The State government has reduced the rate of tax from 4.50 percent to 2.5 percent on all Iron & Steel goods except non cenvat paid scarp.
2. Rate of tax on non cenvat paid scrap is reduced to 1%.
3. Input tax credit will now be restricted to two stages only.
4. ITC on stock held as on 31-1-2014, will be restricted to the new rate of tax i.e 2.5% or 1 % as the case may be.
5. Advance tax will be applicable to all Iron & Steel goods as enumerated in clause iv of section 14 of Central Sales Tax Act. 1956 @2.5% except non cenvat paid scrap which is taxable @1%.
6. This new tax regime will come into effect from 1st February 2014.
For further information and clarification kindly visit website of the department i.e www.pextax.com.
D.P.REDDY,
Financial Commissioner Taxation and
Secretary to Government of Punjab,
Department of Excise & Taxation.
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EXCISE & TAXATION DEPARTMENT,
GOVERNMENT OF PUNJAB
REVISED PUBLIC NOTICE / CLARIFICATION
KIND ATTENTION :- TAXABLE PERSONS, ADVOCATES, CHARTERED ACCOUNTANTS AND COST ACCOUNTANTS.
In response to the public notice published in newspapers on 1st, February, 2014 certain queries have been raised by some advocates and dealers. In response thereto, this notice with clarifications is being issued.
1. The State Government has reduced the rate of tax on iron and steel goods as follows: –
|
Sr. No. |
Name of the commodity | Rate of tax | RateOf advance tax. | ||
| Previousrate | New rate | ||||
|
1. |
All Iron and Steel goods asenumerated in clause iv of Section 14of Central Sales Tax Act, 1956
(Except non-CENVAT paid scrap). |
4.5% + 10%surcharge | 2.5% + 10%surcharge | 2.5% | |
|
2. |
Non-CENVAT paid scrap | 4.5% + 10%surcharge | 1% + 10%surcharge | 1% | |
2. ITC will now be restricted to two stages only and the information regarding stage of dealer is to be provided on the invoice itself, as per the format given below: –
| First importer/Manufacturer | First Stage taxable person | Second stage taxable person | |
|
(1) |
(2) |
(3) | |
|
Name of the taxable person |
|||
|
TIN |
|||
|
Commodity |
|||
|
Weight in MT |
|||
|
Invoice No. |
|||
|
Tax liability |
(To be printed on the backside of the invoice)
3. ITC on stock held as on 31-01-2014 will be restricted to the new rate of tax plus surcharge i.e. 2.75 percent or 1.1 percent as the case may be.
4.Dealers are required to declare their stock as on 31-01-2014. For this purpose, the dealers should go to official website of the department i.e. www.pextax.com login into “e-services” then click on link “e-return” and select the link “Stock (Iron and Steel) as on 31-01-2014” to fill the information in the prescribed proforma available there.
5. This new tax regime will come into effect from 01, February, 2014.
D.P. REDDY
FINANCIAL COMMISSIONER (TAXATION) AND
SECRETARY TO GOVERNMENT OF PUNJAB,
DEPARTMENT OF EXCISE AND TAXATION.
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Author Bio
Dear Amit,
Thanks for information .
I have one query on Iron & steel . Transmission Towers made for Transmission of electricity are also in the nature of steel & iron but Transmission Towers has been separately mentioned in schedule B .
I belive that it will not be applicable in Transmission towers but will be applicable for other item made of steel & iron used in project.
Kindly give your comment on above.
Thanks & Regards
Chandrapal Singh