J S BEDI Advocate

This is for your kind information that as per Rule 40A has been added to the Punjab Vat Rules, 2005 as per which “Every taxable person shall pay annual processing fee of Rs. Eight Hundred only during the month of October alongwith the filing of quarterly return. This processing fee is in lieu of operation, maintenance and upgradation of such facilities and services as electronic issuance of statutory forms, e-filing of returns, e-payment of taxes and such other online and offline services being rendered or proposed to be rendered by the Excise and Taxation Department.

            That for deposit of annual fee excise and taxation commissioner has laid down the procedure by issuing a letter no. DETC-VAT-2012/2 copy of same is reproduced as under.



 All the Deputy Excise & Taxation Commissioners (Divisions),

and  all AETC’s (District Incharge) in the state.

No. DETC-VAT-2012/2    , Patiala, dated: 05-10-2012

Sub:- Collection of processing fee u/r 40-A of the Punjab VAT Rules, 2005.

 Kindly note the following points regarding the issue cited in the subject:-

1)         As per Rule 40-A of the Punjab VAT Rules, 2005, every taxable person registered under the Punjab VAT Act, 2005 including commission agents, Brick kiln owners and Dhaba owners shall have to pay annual processing fee of rupees eight hundred in the  month of October every year. The proof of such payment shall be attached alongwith the quarterly return.

2)         The taxable persons not required to file returns during the month of October shall also pay this annual processing fee in the month of October on or before  30-10-2012.

3)         Annual processing fee is to be paid in Challan Form VAT-2. This is to be filled in column 2(e) of the Challan Form VAT-2 under the head ‘other deposits’ and should be specified as ‘Processing Fee u/r 40-A for the financial year 2012-13. The amount of processing fee shall not be added in column 2(f) of Challan Form VAT -2 meant for the purpose of deduction of Punjab Municipal Fund. However the amount of processing fee has to be added in col. 2(j) and 2 (k) of Challan Form VAT-2.

4)         The entire proceeds of the processing fee shall be credited to the Head of Account 0040-Taxes on Sales, Trade etc-102 State VAT”.

5)         Annual processing fee for the financial year 2012-13 shall have to be paid on or before  30-10-2012.

Kindly bring these facts to the notice of all the dealers, advocates and Chartered Accountants etc. and ensure collection of processing fee well in time.

Dy. Excise & Taxation Commissioner (VAT),

For Excise & Taxation Commissioner, Punjab.


Compiled by

J S BEDI Advocate

Email ID: bediadvocate@yahoo.co.in

Contact Number: 98140-66336

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