NOTIFICATION ISSUED UNDER PUNJAB VAT ACT 2005 REGARDING CHANGE IN RATE OF TAX ON GOODS WHICH ARE SUBJECT TO VAT

State Government of Punjab issued notification no. nil dated nil regarding enhancement of rate of tax under Punjab Value Added Tax Act, 2005 in first week of September by hosting the same on its website  but with great pain it is to be Pointed out that a notification without no. & date is no notification in the eyes of law as per my opinion. It will become a valid document only as and when it is issued with number and date anyhow I suggest the dealer to Act upon the notification which was published on 03.09.2012. It is a settled law that once publication in the official gazette takes place it is deemed to be knowledge to all. Ignorance of law can be no excuse. Once the Gazette was published from the date it was published, it become effective. Attention is invited towards the Star judgment of State of A.P. Vs. Twin City Jewellers Association [2007 10 STM 48 SC] and Union of India Vs. Ganesh Das Bhojraj [2001 STM-6 SC]

Effects of the Notification and Public notice are as under: –

1. Sugar: – The state Government is pleased to waive tax on Sugar w.e.f 03-09-    2012.

2. Increase in the rate of tax by 0.5% under the Punjab VAT Act 2005 w.e.f 03-09-2012. Which resulted in increase, the details of same are as follows: –

A. The rate of Tax on Schedule B Goods has been increased from 5% to 5.5%    plus Additional Tax @ 10% and net effect from 03-09-2012 shall be 6.05% (5.5% + Additional Tax = 6.05%)

B. The rate of Tax on declared goods as mentioned in Schedule C-1 has been increased from 4% to 4.5% plus Additional Tax @ 10% and net effect from 03-09-2012 will be 4.95%. It is pertinent to clarify that  on wheat, paddy and rice, there is no change in the rate of Tax w.e.f 03-09-2012 and the previous rate of Tax i.e. 5% will prevail, reason being maximum ceiling rate on declared goods is 5%.

C. The rate of Tax on items mentioned in Schedule D has been increased from 20% to 20.5% + Additional Tax @ 10%. net effect shall be 22.55%

D. The rate of Tax on items mentioned in Schedule E i.e.

Diesel other than premium Diesel: – 8.75% + Additional Tax @ 10 % net effect shall be 9.625%

Petrol: – 28%   + Additional Tax @ 10 % net effect shall be 30.80%

Plastic Granules, Plastic Powder, master batches: – 8.5% + Additional Tax @ 10 % net effect shall be 9.35%

Spectacles, goggles, sunglasses, parts and lens cleaners: – 8.5% + Additional Tax 10% net effect shall be 9.35%

UPS: – 8.5% + Additional Tax @ 10% net effect from 03-09-2012 shall  be 9.35%

Inverter: – 8.5% + Additional Tax @ 10% net effect from 03-09-2012 shall be 9.35%

Cell phones including all parts and accessories such as Head Phone, Data Cable, Mobile Charger, Memory Card, Ear Phone, Audio Device, Mobile Battery, Bluetooth and Mobile Holder :- 8.5% + Additional Tax @ 10% net effect shall be 9.35%.

E. The rate of Tax on the Residuary entry i.e. schedule F of Act, (goods not mentioned in any other schedule), has been enhanced from 12.5% to 13% + Additional Tax @ 10% net effect from 03-09-2012 shall be 14.30% (13% + Additional Tax  @ 10%).

F. The rate of Tax on Pre-owned cars having engine capacity not exceeding 1000 cc is Rs 3000 per car on the first sale by the dealer.

And for the capacity exceeding 1000 cc is Rs 5000 per car on the first sale by the dealer.

G. The purchase Tax on Sugarcane shall be 3% + Additional Tax @ 10% net effect shall be 3.3%.

H. The rate of Tax on Liquefied Petroleum Gas for domestic use shall be 4% + Additional Tax @ 10% net effect shall be 4.4%.

 Download Notification & Public Notices issued on 03.09.2012 (Total Seven) 

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J S Bedi
Advocate
5/13, Central Town,
Behind Ajit Samachar
Jalandhar-144001. Punjab
0181-2457748, 98140-66336
Email: bediadvocate@yahoo.co.in

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