Tax World

Sales Tax Decisions

P. C. Joshi, Advocate

News from Punjab

1. Inspection

The Government of Punjab by notification dated 5th November, 2007 restricted the inspection of sugar only if the same was manufactured, as also levy sugar and Khandsari manufactured in the said State. Simultaneously, by another notification, entry 152 was added to Schedule B appended to the Punjab VAT Act, levying tax @ 4% on the sugar imported from outside the State of Punjab.

Source : Sales Tax Matters, Vol. 11 Part I, Page 2.

2. No tax on Mehandi

The Government of Punjab issued another notification dated 7th December, 2007 under section 8 of the Punjab VAT Act amending Schedule A, so as to add therein a new entry 21 relating to Mehandi (Heena). Thus the same was declared as free from tax.

Source : Sales Tax Matters, Vol. 11 Part I, Page 8.

3. Entry Tax Act

The Punjab Government, by notification dated 9th January 2008, amended the Entry Tax Act, so as to bring the provisions of the said Act on par with the Punjab VAT Act in place of the repealed Act, Punjab General Sales Tax Act, 1948.

Source : Sales Tax Matters, Vol. 11 Part 2,

Page 11(JS).

4. Input Tax Credit

The Punjab Government, by yet another notification dated 9th January 2008, inserted section 13A to the Punjab VAT Act, by which the payment of VAT was made subject to adjustment of the input tax credit in respect of the tax paid under the Entry Tax Act.

Source : Sales Tax Matters, Vol. 11 Part 2,

Page 14(JS).

News from Rajasthan

The time limit for submitting VAT Audit Report under section 73 of the Rajasthan VAT Act, 2003 for the financial year 2006-07 has been extended up to 31st March 2008.

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