First point tax levied under the Punjab VAT, 2005 on additional commodities with effect from 01.03.2014

Excise and Taxation department has issued notification no. S.O 17/P.A.8/2005/ S.8/2014 dated 21.02.2014 which is effective from 01.03.2014. This is another notification beside the notification issued on 13.12.2013 effective from 01.01.2014 By virtue of this notification, List of commodities are increased in Schedule E and Schedule A beside amendment in Schedule B. In other words, the scope of levy of First stage tax was increased as department is trying to collect the tax in the hands of Manufacturer and Importer and thereafter subsequent seller will treat the same goods as tax free goods. These type of notification is creating ambiguity in the trade circle as number of dealers who are having the stock on 28th Feb, 2014 is to maintain and segregate the stocks as per different dates/periods beside this it is strange and astonishing that the same goods are taxable in the hands of one taxable person and tax free in the hands of another taxable person. It clearly reflects that Excise and Taxation Department has unable to maintain the stability in the VAT System and switched over to the notifications which levy the tax on First stage inspite of the fact it is against the basic spirit of the Punjab VAT, 2005.

AMENDMENT

EFFECTIVE DATE : 01.03.2014

1. IN THE SAID SCHEDULE “A”

 (a) in serial No. 50 and the entries relating thereto, for bracket and words “(Halwai goods only), the bracket and words “(Halwai Goods except branded snacks)” shall be substituted;

 (b) for serial No. 87 and the entries relating thereto, the following serial Nos. and the entries shall be substituted, namely:-

 “The following commodities shall be tax free at the wholesaler or distributor or retailer stage provided that tax has already been paid at the first point of sale i.e manufacturer or first importer’s stage:-

 (i) All types of Televisions, Refrigerators, Washing Machines, Microwave ovens, Oven Toaster Grillers (OTGs), Home Theatres, Air Conditioners, Heaters, Blowers, Vaccum Cleaners, Music Systems including CD players, VCD players, DVD players, ROs and Water Purifiers, Dish Washers and Geysers;

 (ii) Kitchen Appliances i.e sandwich makers, tea/coffee makers, juicer mixer grinders (JMGs), hand blenders, electric rice cookers, electric tandoors, induction cook tops, electric chimneys and electric fryers;

 (iii) Cold Drinks, Aerated Drinks and Soda;

 (iv) All types of personal care products i.e deodorants, shaving products, beauty soaps, shampoos, hair oil, conditioners, serums, hair care products, tooth pastes, hand wash, body wash, beauty products, hair gels, bathing gels, talcum powders, creams, anti-persiprants, petroleum jellies, baby care products, skin care lotions, sanitary napkins, after shaving lotion and tooth brush;

 (v) All types of soaps and detergents i.e washing bars and soaps, fabric softeners, bleach, gentle wash, dish wash, color care and Neel;

 (vi) All types of branded and packaged food products i.e chips, wafers, chocolates, toffees, chewing gums and bubble gums, ice creams, Breakfast Cereals, Muesilli, Corn Flacks, pasta, macroni, biscuits, frozen desserts, frozen ready to eat products, meal makers, instant soups , instant noodles, ready to eat products, custard powder, bakery products, baby foods, coffee powder, ice tea, coffee premix, tea premix, jellies, ketchup and spreads;

 (vii) Mineral Water;

 (viii) Processed fruits and vegetables i.e Fruit jams, pickles, fruit squash, paste, fruit drinks, fruit juice (whether in sealed container or otherwise);

 (ix) Roasted or fried grams and groundnuts, namkeens and branded snacks;

 (x) Branded Honey;

 (xi) Branded Atta, Maida, Suji and Besan;

 (xii) Branded Cottage Cheese (Paneer), processed cheese including mozzarella, parmesan and other varieties of processed cheese;

 (xiii) Desi Ghee;

 (xiv) Edible Oils, Vegetable Oil including gingili oil and bran oil;

 (xv) Sweetened Flavored Milk;

 (xvi) Tea excluding Green tea;

 (xvii) Coffee beans and seeds, cocoa pod and chicory;

 (xviii) Drugs and medicines including vaccines, syringes and dressing, mediated ointments produced under drug license, light liquid paraffin of IP and other grades, medical equipments/devices and implants;

 (xix) Branded Spices of all varieties and forms including cumin seed, aniseed, turmeric and dry chillies;

 (xx) Mosquito repellants, toilet cleaners, wood preservatives, chemicals for killing domestic insects, termicides, phenyl and similar other products, which are not used for agricultural purpose;

 (xxi) Tissue papers;

 (xxii) Cups and glasses of paper and plastic;

 (xxiii) Branded Vermicilli. and

 (c ) Serial Nos. 88, 89, 90, 91 and 92 and the entries relating thereto shall be omitted.

2. IN THE SAID SCHEDULE “B”

 (a) in serial Nos. 12, 21, 29, 31, 33, 41, 88, 98, 109, 117, 127, 155, 156, and 159 and the entries relating thereto, shall be omitted;

 (b) in serial No. 26 and the entries relating thereto, for the words and brackets “cottage cheese (paneer)”, the words and brackets “unbranded cottage cheese (paneer), shall be substituted;

 (c ) in serial No. 48 and the entries relating thereto, for the word “honey”, the words “unbranded honey” shall be substituted;

 (d) in serial No. 81 and the entries relating thereto, the words “tissue paper” shall be omitted; and

 (e) in serial No. 165 and entries relating thereto, for the words and brackets sevian (Vermicilli), the words and brackets “unbranded sevian (vermicelli)” shall be substituted.

3. IN THE SAID SCHEDULE “E”

(a) for Serial No. 15 and the entries relating thereto, the following serial No. and the entries shall be substituted namely:-

 These following commodities shall be taxable at the first point of sale i.e manufacturer or first importer’s stage, at the rates specified against these entries in the Table given below, namely:-

Sr. No Commodity Name Rate of Tax
1 All types of Televisions, Refrigerators, Washing Machines, Microwave ovens, Oven Toaster Grillers (OTGs), Home Theatres, Air Conditioners, Heaters, Blowers, Vaccum Cleaners, Music Systems including CD players, VCD players, DVD players, ROs and Water Purifiers, Dish Washers and Geysers 14.5 per cent
2. Kitchen Appliances i.e sandwich makers, tea/coffee makers, juicer mixer grinders (JMGs), hand blenders, electric rice cookers, electric tandoors, induction cook tops, electric chimneys and electric fryers 14.5 per cent
3. Cold Drinks, Aerated Drinks and Soda 22.5 per cent
4.  All types of personal care products i.e. deodorants, shaving products, beauty soaps, shampoos, hair oil, conditioners, serums, hair care products, tooth pastes, hand wash, body wash, beauty products, hair gels, bathing gels, talcum powders, creams, anti- persiprants, petroleum jellies, baby care products, skin care lotions, sanitary napkins, after shaving lotion and tooth brush 14.5 per cent
5. All types of soaps and detergents i.e washing bars and soaps, fabric softeners, bleach, gentle wash, dish wash, color care and Neel 14.5 per cent
6. All types of branded and packaged food products i.e chips, wafers, chocolates, toffees, chewing gums and bubble gums, ice creams, Breakfast Cereals, Muesilli, Corn Flacks, pasta, macroni, biscuits, frozen desserts, frozen ready to eat products, meal makers, instant soups , instant noodles, ready to eat products, custard powder, bakery products, baby foods, coffee powder, ice tea, coffee premix, tea premix, jellies, ketchups and spreads 14.5 per cent
7. Mineral water 14.5 per cent
8. Processed fruits and vegetables i.e Fruit jams, pickles, fruit squash, paste, fruit drinks, and fruit juice (whether in sealed container or otherwise) 6.25%
9. Roasted or fried grams and groundnuts, namkeens and branded snacks 6.25%
 10. Branded Honey 6.25%
11. Branded Atta, Maida, Suji and Besan 6.25%
12. Branded Cottage Cheese (Paneer), processed cheese including mozzarella, parmesan and other varieties of processed cheese 6.25%
13. Desi Ghee 6.25%
14. Edible Oils, Vegetable Oil including gingili oil and bran oil 6.25%
15. Sweetened Flavored Milk 6.25%
16. Tea excluding Green tea 6.25%
17. Coffee beans and seeds, cocoa pod and chicory 6.25%
18. Drugs and medicines including vaccines, syringes and dressing, mediated ointments produced under drug license, light liquid paraffin of IP and other grades, medical equipments/devices and implants 6.25%
19. Spices of all varieties and forms including cumin seed, aniseed, turmeric and dry chillies 6.25%
20. Mosquito Repellants, toilet cleaners, wood preservatives, chemicals for killing domestic insects, termicides, phenyl and similar other products, which are not used for agricultural purposes. 6.25%
21. Tissue Papers 6.25%
22. Cups and glasses of paper and plastic 6.25%
23. Branded Vermicilli 6.25%

 (b) in serial Nos. 16, 17, 18, 19 and 20 and the entries relating thereto shall be omitted.

CONCLUSION

The highlighting feature of this notification is not only to levy the tax at first stage in the hands of manufacturer and importer rather subsequent sale is also made tax free beside this in some entries pertaining to Schedule B scope was extended as the entry pertains to “Halwai” goods, Cottage cheese, Honey and sevian also covers the unbranded category. So it can be safely inferred that day by day Excise and Taxation Department is increasing the scope and rate of tax this ultimately results in increase in prices.

(Authored by- J S BEDI Advocate, Email ID: bediadvocate@yahoo.co.in, Contact Number: 98140-66336)

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7 responses to “First point tax levied on additional items under Punjab VAT wef 01.03.2014”

  1. Chandan says:

    Is Two Wheelers taxable at single stage tax in punjab as per schedule E?

  2. CA ARUN GUPTA (9876775070) says:

    For desi ghee packing beyond 15 kgs
    charge tax at 6.875% and you will be eligible to claim ITC also

  3. Sonu Singh says:

    kindly brifely justfy first point sale & what is trade tax structure on cold dirnk, soda & fruit based juice in punjab state.??

  4. Sonu Singh says:

    what is trade tax structure on cold dirnk, soda & fruit based juice in punjab state.??

  5. aman says:

    sir,
    kindly clarify whether kitchen apron and portable fire extinguishers are covered under the head LPG AND ACCESSORIES or it require amendment in vat registration.

    regards

  6. GORAV AHUJA says:

    tell us aboout sale tax rate of desi ghee tin and desi ghee as little bit

  7. GORAV AHUJA says:

    Dear Team

    Is there any difference in sale tax rate of desi ghee of tin or little bit qty and tell us latest sale tax rate of said item

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