Excise & taxation Department, Punjab has levied processing fee of Rs. 800 on every taxable dealer (i.e Person having VAT registration) in Punjab under a new Rule 40-A of Punjab VAT Rules, 2005. This rule provides as under:

“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.”

It is very sad that the taxpayers are now forced to bear the administrative expenses of the Excise & Taxation Department in addition to the payment of due taxes.

The e-payment of taxes, efiling facilities and other services are also being provided by the Income Tax Department, Central Board of Excise & Customs, but these Central Government Departments never have charged any processing fee for these services, rather they bear the administrative expenses from the tax collected.

It is strange that finance starved Punjab Government wants to recover the cost of recovering taxes also from the taxpayers separately instead of bearing out the same from the taxes paid by the taxpayers.

Anyhow it should be noted by the all the taxable persons that such processing fee has been levied w.e.f. 05-09-2012 and has to be deposited in the month of October, 2012 along with the filing of quartarly return.

This processing fee is not applicable on TOT dealers.

Luxury tax doubled: Luxury Tax has also been enhanced from 4% to 8%.

Lump sum Tax on Brick klin owners doubled: Lumpsum tax payable in lieu of tax by the brick kiln owners has been doubled for each category having same capacity of kiln.  

Other amendments:ln Schedule ‘B’ serial Nos. 72, 84 and 139 and the entries relating thereto have been omitted, and now entry regarding shoes including moulded plastic footwear, hawai chappals and straps thereof, plastic footwear and hand crafted footwear not exceeding Rs. 250/- have been put in schedule ‘B’ meant for tax rate of 5.5 percent. Therefore, above noted items exceeding Rs. 250/- have now been put in schedule ‘F’ meant for VAT rate of 13 percent.

Earlier entry No. 72, 84 and 139 in schedule were as under which now stands deleted:
72. Moulded plastic footwear, Hawai chappals and straps thereof.
84. Plastic footwear
139. Hand crafted Footwear.

It means now moulded plastic footwear, hawai chappals and straps thereof, plastic footwear and hand crafted footwear not exceeding Rs. 250/- will be taxable at rate of 5.5 percent(i.e. after adding surcharge @ 6.05%) and such items exceeding Rs. 250 will be taxable @ 13%(i.e. after adding surcharge @ 14.30%)

Position reversed in case of sale by and to CSD:
Entry regarding “sales made to Canteen Stores Department subject to the furnishing of a certificate duly signed and stamped by the officer authorized to make purchase certifying that the goods purchased are meant for sales to serving military personnel and ex-servicemen directly or through unit run Canteens” has been put at serial No. 43 in Schedule ‘A’ meant for tax free items, and entry regarding “sales made by Canteen Stores Department to serving military personnel and ex-servicemen directly or through unit run canteens” has been put at serial No. 100-A in Schedule ‘B’ meant for iterns taxable at Vat rate of 5.5 percent.

It means that now sale to CSD will be tax free and sale by CSD would be taxable @ 5.5%. Earlier the position was reverse i.e earlier sales made by CSD was tax free and sales made to CSD was taxable.

The Public notice confirming the above amendments can be downloaded herebelow:

Download Public Notice

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Read Other Articles from Advocate Amit Bajaj

(Author – Amit Bajaj Advocate, Bajaj & Bajaj Advocates, 128, Sangam complex, Milap chowk, Jalandhar City (Punjab), Email: amit@amitbajajadvocate.com, M +919815243335)

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