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Applicability of VAT or CST on inter-state works contracts

Inter-state sale or purchase of goods made in pursuance of a per-existing works contract and executed in such works contract, shall be deemed as sale or purchase in the course of inter-state trade and there cannot be any local deemed sales in such case, hence the deduction of such sale or purchase should be allowed while calculating local...

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Now pay advance tax of VAT in Punjab ; Is it justified?

Recently entry tax in Punjab was stayed by P&H High Court in Bhushan Steel case. In that case the State Govt contested the writ petition challenging constitutionality of Punjab Tax on Entry of Goods into Local Areas Act, 2000 by stating that entry tax under the said Act is being collected as an advance tax of VAT, however the High Court h...

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Service Taxation to Take Rejig

Taxation of services is now almost seventeen years old in India with over 120 services in the service tax net which have been added successively in last 17 years. While government proposes to introduce goods and service tax (GST) an hear future (not certain in 2010 atleast), in all likelihood, we may land up in a scenario where all servic...

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VAT on BOT contracts-a view point

The concept of Public-Private partnership in infrastructural development has given rise to the concepts of BOT contracts. BOT contract means Build-Operatre-Transfer, i.e the contractor is given a contract to build some infrastructure out of his own funds and thereafter he is given right to operate such infrastructure and recover his cost ...

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Declared goods except wheat and paddy still taxable @ 4.4% in Punjab after ordinance dt 17-08-2011- Section 8(1) and 62(5) of PVAT amended

Punjab Government has promulgated an Ordinance dated 17-08-2011 vide Notification No. 33-Leg/2011 whereby proviso to section 8(1) and section 62(5) of Punjab VAT Act, 2005 have been amended. Proviso to Section 8(1) deals with rate of tax on declared goods whereas section 62(5) deals with pre-deposit of 25% before entertaining of any appea...

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Maharashtra VAT – Refund Of Security Deposit Made During Registration

1. Presently, deposit of Rs. 25,000 made at the time of registration is allowed to be adjusted against tax liability of the period in which registration was granted and in the subsequent year. 2. From 1 May 2011 such adjustment will not be allowed and the dealer is required to file claim for refund of such deposit....

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Powers of Inspection, Search & Seizure under Punjab VAT Act, 2005

Power of inspection, search, and seizure can be easily found to be in every taxation law. The purpose of these powers is always to detect any tax evasion on the part of dealers but these powers are always ancillary to the power of collection of tax of the State and are provided only for the proper collection of tax. While exercising these...

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Think twice before choosing Lump sum payment of tax in Works contracts under PVAT Act

If you want to choose lump sum scheme for payment of tax in works contracts without maintaining any books of accounts under Punjab VAT Act, 2005, you should think twice before choosing it. Proviso to section 8(2-A) of Punjab VAT Act and Rule 15(6) of Punjab VAT Rules deals with the lump sum payment of tax under Punjab VAT in works contra...

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In works contract between contractor & sub-contractors only one is liable to pay tax

When works contract is sub-contracted there is only one taxable event and between main contractors and sub-contractor only one is liable to pay tax on the goods incorporated in the works contract. Herebelow this issue is discussed in the light of decision of Supreme Court and P&H High Court in the context of VAT provisions especially unde...

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Tax paid by contractee on goods supplied to contractor, is allowable as Input Tax Credit to such contractor

The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. The assessee was a...

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