Tax World

Sales Tax Decisions

P. C. Joshi, Advocate


News from Punjab

Entry Tax

Consequent to the promulgation of the Ordinance providing for tax on entry of goods into local areas, the Government of Punjab notified that the same would be leviable @ 4% on and with effect from 21st November, 2007 on the entry of Iron & Steel, Dyes and Chemicals, all types of Yarn and Sugar.

Source : Punjab & Haryana Taxes (2007) 30 PHT 128 (JS).

News from Rajasthan

1. By notification dated 20th November, 2007, government of Rajasthan have amended Rules appended to the Rajasthan VAT Act, by insertion of Rule 19A providing for the electronic filing of returns and electronically deposit of tax under the Rajasthan VAT Act.
2. By another notification dated 27th November, 2007, the Government of Rajasthan also amended Rule 4 of the Central Sales Tax (Rajasthan) Rules, 1957 by insertion of Rule 4A in the said Rules prescribing the electronic filing of returns and electronic deposit of tax under the Central Sales Tax Act.
3. By notification dated 10th December, 2007, the Government of Rajasthan amended Rule 36 of the Rajasthan VAT Rules, 2006, whereby the time limit for submitting the VAT Audit Report relating to the financial year 2006-07 was extended. Now the VAT Audit Report can be submitted up to 15th February, 2008.

Source : Shri M. L. Patodi, Advocate, Kota, Rajasthan

News from Tamil Nadu

  1. Exemption

The Tamil Nadu Government, by notification dated 27th September, 2007, have granted exemption of the tax payable by a dealer on the sale of any goods for use in the execution of turn-key projects by main or sub-contractors, registered under the Tamil Nadu VAT Act but restricted it to the agreement with M/s Foxconn India Developer Pvt. Ltd., for construction or development of the Special Economic Zone in Sipcot area. The exemption, however, was made conditional to the submission of a declaration from the said company once in a year.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 13 No. 8, Page 289.

  1. E-filing of return

The Commissioner of Commercial Taxes, Chennai, have emphasised by a Circular dated 23rd October, 2007 that the assessing officers should not insist for the annexures to the monthly return in CD, from small dealers whose monthly transactions were twenty or less in number.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 13 No. 8, Page 293.

  1. No ITC reversal

The Commissioner of Commercial Taxes, Chennai, by a Circular dated 8th October 2007, advised that the refund of input tax credit cannot be denied or restricted for non-filing of ‘C’ Form or ‘F’ Form under C.S.T. Act. On that account, input tax credit was not required to be reversed.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 13 No. 8, Page 294.

  1. Earlier notification continue

The Commissioner of Commercial Taxes, Chennai, clarified that the sales to government departments were liable to be taxed @ 4% by virtue of the notification issued under the Repealed enactment, namely Tamil Nadu General Sales Tax Act, especially in view of the saving clause.

Section 88(3) of the Tamil Nadu VAT Act under which the notifications, rules and regulations that were issued earlier were served in so far as they were not inconsistent with Tamil Nadu VAT Act.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 13 No. 8, Page 295.

  1. Input Tax Credit

The Commissioner of Commercial Taxes, Chennai, clarified by a letter dated 17th September, 2007 that there was no time limit for availing the input tax credit which can as well, be carried over to be refunded after some time. It has also been stated that the claim for input tax credit should be made within a period of 90 days from the date of purchase or before the end of the concerned financial year.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 13 No. 8, Page 298.

  1. Sale to exporters – Against ‘H’ Form

The Commissioner of Commercial Taxes, Chennai, clarified that the dealers selling goods to exporters were deemed exporters and therefore such transactions were covered by zero rate sale. Consequently there was no need to collect tax on their transactions with the exporters.

Source : The Tamil Nadu Commercial Taxes Journal, Vol. 13 No. 8, Page 304.