Reference to Notification No. S.O.17/P.A8/2014 dated 21st February, 2014
In light of the above notification we are receiving queries from various dealers and lawyers. In response to this, following clarifications are being issued:
1. In light of this notification any transactions in the hands of manufacturer/first importer will be taxed at the rates mentioned against these commodities subject to conditions. CST provisions will be applicable on the Manufacturer/First Importer as earlier.
2. In light of this notification any transactions in the hands of subsequent dealers will be tax free subject to conditions. So, if any subsequent dealer makes any inter-state sale of the notified goods, the tax liability will be nil and at the same time ITC available will also be nil.
3. 10% surcharge is applicable in addition to the tax rates mentioned in these notifications.
4. Some of the dealers, trade associations, bar council members etc have requested that they need time to change their SAP / ERP systems and will not be able to print computerized retail invoices at such a short notice. New goods and new rates have been introduced and they need time to incorporate new features in their systems. Such dealers are given the time of 1 month to change their systems. But 1st March, 2014 onwards all the invoices must be stamped as given below:
The commodities if any taxed at 15.95% (14.5% + 10% surcharge thereon) and 6.88% (6.25%+10% surcharge thereon) are under single stage taxation regime. There will be no ITC available to the subsequent dealer i.e wholesalers /distributors and retailers on these commodities subject to the conditions prescribed.
The Subsequent dealer i.e Wholesalers/Distributors and retailers will also mention on his invoice as below:
The commodities at 15.95% (14.5% + 10% surcharge thereon) and 6.88% (6.25%+10% surcharge thereon) are taxed at Manufacturer/First Importer’s Stage and tax free at the subsequent stages under single stage taxation regime. There will be no ITC available to the subsequent dealer on these commodities.
5. The dealers at the subsequent stages after Manufacturer/First Importer have to declare their stock as on 28th February, 2014. For this proforma is being uploaded on the website of Department The dealers at the subsequent stages after Manufacturer/First Importer will continue to pay the tax according to the provisions of Punjab VAT Act, 2005 on the stock of goods which were not covered under single stage taxation and were being taxed @ 6.05% and @ 14.30% and , until it is completely sold or disposed off. The stock purchased by the dealers at the subsequent stages after Manufacturer/First Importer on or after 1st March, 2014, will be tax free at the subsequent stages after Manufacturer/First Importer’s Stage subject to the conditions.
6. The objective behind introduction of single stage taxation is to impose single stage taxation on the goods sold in retail to the end consumers at karyana stores and in which no further value addition is being done. Many associations like Oil Millers and Dealers Association and Federation of the Karyana & Dry Fruit Commercial Association have submitted representations that some commodities mentioned in this notification are being used by the manufacturers as inputs and whole sale trade is facing a setback in Punjab. In this context, it is clarified that:
In Schedule E:
In case of commodities mentioned at serial no 8,9,10,11,12,13, 14,15, 17, 23 and 24, they shall be taxable at the first point of sale i.e manufacturer or first importer’s stage, at the rates specified against these entries provided they are packed in retail packings of not more than 15 kgs. If the commodities mentioned in the serial no 8,9,10,11,12,13, 14, 15, 19, 23 and 24 are in the packings of more than 15 kgs, ITC will be available to the manufacturer at the subsequent stage.
In case of commodities mentioned at Serial No. 16 and 19, they shall be taxable at the first point of sale i.e manufacturer or first importer’s stage, at the rates specified against these entries provided they are packed in retail packings of not more than 1 kg. If the commodities mentioned in the serial no 16 and 19 are in the packings of more than 1 kg, ITC will be available to the manufacturer at the subsequent stage.
In Schedule A:
In case of commodities mentioned at serial no 8,9,10,11,12,13, 14,15,17, 23 and 24, they shall be tax free at the wholesaler or distributor or retailer’s stage provided that the tax has already been paid at first point of sale i.e manufacturer or first importer’s stage, provided they are packed in retail packings of not more than 15 kgs. If the commodities mentioned in the serial no 8,9,10,11,12,13, 14,15, 17, 23 and 24 are in the packings of more than 15 kgs, then they will be taxed at rates specified in Schedule E and ITC will be available to the manufacturer at the subsequent stage.
In case of commodities mentioned at Serial No. 16 and 19, they shall be tax free at the wholesaler or distributor or retailer’s stage provided that the tax has already been paid at first point of sale i.e manufacturer or first importer’s stage, provided they are packed in retail packings of not more than 1 kg. If the commodities mentioned in the serial no 16 and 19 are in the packings of more than 1 kg, then they will be taxed at rates specified in Schedule E and ITC will be available to the manufacturer at the subsequent stage.
Declaration of Stock as on 28th February, 2014
I, ___________________________, Proprietor/Partner/Managing Director/Karta/ Authorized Signatory ____________________ of M/s ___________________________________________________, Address _________________________________________________________________________________________, holding TIN No. __________________, registered under Punjab VAT Act, 2005 since ________________, trading in ________________________________________________________, hereby, declare stock lying on my premises as on 28th February, 2014 as follows:
S.No
Existing Rate of tax
New Rate of tax
Value
6.05%
6.88%
14.30%
15.95%
22.55%
24.75%
I understand that I shall be liable to pay tax on the value addition on the above mentioned stock as per the provisions of Punjab VAT Act, 2005 at the rate of tax prevalent before 1st March, 2014 as and when I sell/dispose this stock.
Dated: 4th January, 2014 Signature
Name
Address
TIN No.
