Whereas the Governor of Punjab is satisfied that it is expedient so to do in the public interest;

Now, therefore, in exercise of the powers conferred by section 8-A of the Punjab Value Added Tax Act, 2005 (Punjab Act No. 8 of 2005), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to direct that a licensee, who is holding license L-3, L-3A, L-4, L-4A, L-5, L-5A, L-5B, L-5C and L-12C issued under the Punjab Excise Act, 1914, shall at its option, pay lump sum in lieu of tax payable under the aforesaid Act of 2005, subject, however, to the following conditions,namely:-

CONDITIONS

1. The liability of the said licensee opting for this scheme, shall be fixed at a rate of 5 paisa in a rupee on the taxable turnover of the sales;

2. The licensee opting for this scheme shall not,-

(a) issue VAT invoice for sale of goods made by him, and no taxable person, to whom goods are sold by such person, shall be entitled to claim any input tax credit in respect of such sale; and

(b) be entitled to claim any input tax credit and purchase made by him;

3. If it found that the licensee who has opted this scheme has evaded the tax fraudulently or by misrepresentation of facts, he shall be proceeded against under the relevant provisions of the said Act of 2005;

4. An yearly increase in lumpsum tax payable in lieu of tax payable under the said Act of 2005, shall be notified by the State Government; and

5. The licensee, who has opted for lump sum tax, shall be at liberty to cancel his option at any time by making an application to the designated officer, subject to the condition that he can do so only with effect from the beginning of the next financial year.

M.P.SINGH,

Additional Chief Secretary

to Government of Punjab,

Department of Excise and Taxation.