It has been proposed in the Budget 2011-12 to increase the ceiling of 4% on declared goods under section 15 of CST Act to 5%. Currently State Governments cannot levy VAT more than 4% on declared goods. Declared goods are those goods which are of special importance and have been defined u/s 14 of CST Act 1956. This increase has been made in view of recent increase in the VAT slab rate of 4% to 5% by many states.
Rates of Income Tax : in the case of every individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act
Direct Taxes – Exemption limit for the general category of individual taxpayers enhanced from 1,60,000 to Rs. 1,80,000 giving uniform tax relief of Rs. 2,000. Exemption limit enhanced for Senior Citizen to Rs 250000 and qualifying age reduced for senior citizens from 65 to 60 Years.
Normally VAT is leviable on the sales of goods by a dealer but in certain circumstances and on certain goods tax is also levied on the purchases made under Punjab VAT Act 2005. Chapter III of Punjab VAT Act 2005 deals with the purchase tax. The provisions relating to purchase tax under PVAT Act are discussed as follows.
The word Sale has been defined under section 2(zf) of Punjab VAT Act 2005 as including the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.
Section 85 of the PVAT Act empowers the Commissioner under the Act to determine any disputed question as may arise otherwise than in proceedings before a Court or before the commencement of assessment of a person under section 29. Here some recent important orders of Commissioner u/s 85 of PVAT Act are being shared here:
Punjab and Haryana High Court in a recent case namely Tata Sky Limited v State of Punjab and another has held that levy of entertainment duty on providing entertainment by broadcasting signals on TV sets is intravires of the powers of the State Legislature. The Petitions of TATA Sky Limited challenging the levy of entertainment duty under Punjab Entertainment Duty Act 1955, has been dismissed.
Neither the State Government can impose tax/vat on sales of goods in the course of import or export nor CST Act 1956 imposes any tax on such sales. Here in this article exemptions available on Penultimate export sales under CST Act 1956 are concentrated on:
Section 8(6),8(7) and 8(8) of the CST Act deals with the exemptions available to a SEZ unit or SEZ developer from CST. When goods are sold to a SEZ unit or SEZ developer then no CST is payable by such unit or developer as per the above sub sections subject to fulfillment of certain conditions. The conditions and forms relating to such exemption are provided as follows for the benefit of all concerned.
Rule 51A of Punjab VAT Rules has been added in the Punjab VAT Rules 2005 w.e.f 12-09-2008 to provide for the locking of TIN No of a dealer in certain circumstances. Locking the TIN no means the temporary stoppage of interstate movement of goods of the concerned person for the purpose of verification or further legal action. Temporary stoppage is done by locking the TIN No of the concerned person in the server of the software used by the VAT Department all over the state including at barriers set up at the various borders of the state.
