[Extract from the Punjab Govt. Gaz. (Extra), dated the 22nd March, 2013J PUNJAB VIDHAN SABHA SECRETARIAT NOTIFICATION The 22nd March, 2013 No. 10-PLA-2013/14.- The Punjab Value Added Tax (Amendment) Bill, 2013 is hereby published for general information under the proviso to rule 121 of the Rules of Procedure and Conduct of Business in the Punjab Vidhan Sabha (Punjab Legislative Assembly):- Bill No. I0-PLA-20 13 THE PUNJAB VALUE ADDED TAX (AMENDMENT) BILL, 2013 A BILL further to amend the Punjab Value Added Tax Act, 2005. BE it enacted by the Legislature of the State of Punjab in the Sixty-fourth year of the Republic of India as follows:- (I) This Act may be called the Punjab Value Added Tax (Amendment) Act, 2013. (2) It shall come into force at once. 2. In the Punjab Value Added Tax Act, 2005 (hereinafterreferred to as the princpal Act), in section 2, after clause 0), the following clause shall be inserted, namely» 1. "(ij) "electronic governance" means the use of electronic medium for,- (i) filing of any form, return, application, declaration or any other document; (ii) creation, retention or preservation of records ; (iii) issue or grant of any form including statutory forms, orders and certificates; and (iv) . receipt of tax, interest, penalty or ay other payment or refund of the same through Government treasury or authorized banks.". In the principal Act, after section 3, the following section shall be inserted, namely:- "3-A. Notwithstanding anything contained in this Act or the rules make thereunder, Implementation the commissioner may be an order with the approval of the State of electronic Government, implement electronic governance for carrying out the governance. various provisions of this Act and the rules made thereunder.". 4. In the principal Act, in section 8, in sub-section (1), for the words "thirty two paise", the words "fifty five paise" shall be substituted. 3. 5. In the principal Act, in section 27, for the words "five per cent" wherever occurring, the words "six per cent" shall be substituted. 6. In the principal Act, in section 51,- (a) in sub-section (I), after the words "place or places", the words "or in such manner" shall be inserted; .t. Short title and commencement. Amendment of section 2 of Punjab Act 8 of 2005. Insertion of new section 3-A in Punjab Act 8 of 2005. Amendment of section 8 of Punjab Act 8 of 2005. Amendment of section 27 of Punjab Act 8 of 2005. A~ndment of ction 51 of Punjab Act 8 of 2005.2 (b) in sub-section (2),- (i) after the words "The owner or person Incharge of", the words "the goods or" shall be inserted; (ii) after the words "as are being carried in the goods vehicle", the words "or by any other means" shall be inserted; and (iii) in the first proviso, after the words "outside the State in the course of", the words" intrastate or" shall be inserted; (c) in sub-section (3), after the words "the driver or any other person Incharge of the goods", the words "and goods" shall be inserted; (d) in sub-section (4), excepting the provisos,- (i) after the words "The owner or person Incharge of", the words "the goods and" shall be inserted; and (ii) after the words "the declaration duly verified by him to the owner or person Incharge of", the words "the goods and" shall be inserted; (e) in sub-section (5), after the words "the driver or the owner of", the words "the goods and" shall be inserted. ". STATEMENT OF OBJECTS AND REASONS Currently under the Punjab VAT Act, 2005 interestate transactions made by the registered dealers are recorded at the information collection centres established by the Government. However, there is no provision for recording of huge number of intrastate transactions made by traders/taxable persons in Punjab. Taking undue advantage of this, many persons evade Tax by deleting/destroying the bills after the goods reach the destination. This not only causes huge loss to state revenue but also creates unhealthy competition to honest Tax payers. To check this malpractice, the Department after considering the policies adopted by some States and also taking suggestions of traders and manufacturers of Punjab has decided to introduce e-trip in Punjab for recording the intrastate transactions also. For this necessary software has been developed. Under the e-trip system the traders shall be required to upload the information regarding intrastate transactions above a particular value on the departmental website. For this purpose there is a need to insert section 3-A and amend the sections 2 and 51 of Punjab Vat Act, 2005. 2. At present as per sub-section (1) of section 8 under Punjab VAT Act, 2005 the Government have powers to levy VAT up to 32% of the taxable turnover. Keeping in view the representations of health and social organizations to curb the unhealthy effects of consumption of Cigarettes, the Punjab Government (on the lines of Uttar Pradesh and Rajasthan states) has approved the proposal to levy VAT @ 55% (including surcharge) on Cigarettes. To implement this decision there is need to amend section 8(1) of the Punjab VAT Act, 2005 which limits the maximum rate of tax to be charged. This will not only lower consumption of Cigarettes but also will help in mobilizing additional revenue for the State. 3. At present the rate of tax deduction at source on works contracts is 5% only. The schedules appended to the Punjab Value Added Tax Act, 2005 were amended on 05-09-2012 and rates of tax on most of the items used in works contracts were increased to 6.05% and 14.3% (including surcharge). Therefore, it has become, imperative to increase the rate of tax deducted at source to 6%. Therefore, an amendment in section 27 of the Punjab Value Added Tax Act, 2005 is required. SUKHBIR SINGH BADAL, Deputy Chief Minister, Punjab.3 FINANCIAL MEMORANDUM By the implementation of e-trip under the Punjab Vat Act and Rules, the State is likely to earn an additional revenue of approximately Rs. 200-300 crores annually. 2. With amendment in section 8( I) of Punjab VATAct, 2005 and increase in the rate of VAT on Cigarettes to 55% (including surcharge), there will be annual increase of Rs. 100 crores approximately to the state revenue. 3. With amendment in section 27 of the Punjab Value Added Tax Act, 2005 State is likely to earn an additional revenue of approximately Rs. 50 crores per annum. Chandigarh : The 22nd March, 2013 VED PARKASH Secretary. 0/84103-20/3IPb. Govt. Press, S.A.S. Nagar
Posted on: Tue, 20 Aug 2013 01:37:42 +0000
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