I had given a clarification two days back in an article titled ‘PVAT Act 2005 – Declared Goods except wheat and paddy will be taxable @ 4.4% w.e.f 08/04/2011’ that surchage is also applicable on declared goods other than Paddy and wheat, since the ceiling rate of tax was enhanced from 4% to 5% by the Central govt in the Budget of 2011-12.

I have been receiving a lot of calls and emails for last two days after my clarification on the above issue, everyone was asking whether my clarification is supported by any official verdict. Today the same has been confirmed by the Punjab Government, Excise and Taxation Department by a public notice which is produced herebelow. Now it is officially confirmed that declared goods other than Wheat and Paddy will be taxable @ 4.4% after adding the surcharge u/s 8-B of Punjab VAT act 2005.


(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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    Its only the ceiling rate u/s 15(1) of CST Act that has been enhanced to 5% by central Govt. No increase of tax rate on declared goods from 4% to 5% has been made by Punjab Govt except on wheat and paddy.

    Since ceiling rate on declared goods is 5% therefore there will be no surcharge applicable on wheat and paddy. On other declared goods on which the rate of tax is less than 5% surcharge will be applicable

  2. Deepak Nassa says:

    Dear Sir,

    as we know that Tax on Declared Goods has been increased WEF 08.04.2011 by the Punjab State Govt. and now the Tax on Declared Goods is 5%

    my Question is that now the tax on Declared Goods(other then Paddy & Wheat) is 5.50% on 4.40%

    Plz. Confirm the Same


    Deepak Nassa

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