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Punjab Amendment Acts Regarding Insert Section Input tax credit for tax, paid under the Punjab Entry Tax and Increase Tax deduction Rate to 4 under Section 27

January 21, 2008

India Sales Tax And VAT Database

THE PUNJAB VALUE ADEED TAX ( SECOND AMENDMENT) ACT, 2007

Notification No. 2-Leg./2008. Dated 9^th January, 2008

The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 8^th January, 2008, and is hereby published for general information :-
THE PUNJAB VALUE ADEED TAX ( SECOND AMENDMENT) ACT, 2007
(Punjab Act No. 2 of 2008)
AN
ACT
further to amend the Punjab Value Added Tax Act, 2005.
Be it enacted by the Legislature of the State of Punjab in the Fifty-eighth Year of the Republic of India as follows :-
1. Short title and commencement
(1) This Act may be called the Punjab Value Added Tax (Second Amendment) Act, 2007.
(2) It shall be come into force at once.
2. Amendment of section 2 of Punjab Act 8 of 2005.
In the Punjab Value Added Tax Act, 2005 , in section 2, in clause (zg), in the Explanation, item (6) shall be omitted.
3. Repeal and saving
(1) The Punjab Value Added Tax (Second Amendment) Ordinance, 2007 (Punjab Ordinance No. 4 of 2007) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the Ordinance referred to in sub-section (1), shall be deemed to have been done or taken under the principal Act, as amended by this Act.
B .S. MEHANDIRATTA,
Secretary to Government of Punjab,
Department of Legal and Legislative Affairs

THE PUNJAB VALUE ADEED TAX ( THIRD AMENDMENT) ACT, 2007

Notification No. 3-Leg./2008. Dated 9^th January, 2008
The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 8^th January, 2008, and is hereby published for general information :-
THE PUNJAB VALUE ADEED TAX ( THIRD AMENDMENT) ACT, 2007
(Punjab Act No. 3 of 2008)
AN
ACT
further to amend the Punjab Value Added Tax Act, 2005.
Be it enacted by the Legislature of the State of Punjab in the Fifty-eighth Year of the Republic of India as follows :-
1. Short title and commencement
(1) This Act may be called the Punjab Value Added Tax (Second Amendment) Act, 2007.
(2) It shall be come into force at once.
2. Insertion of new section 13-A in Punjab Act 8 of 2005.
13-A. Input tax credit for tax, paid under the Punjab Tax on Entry of Goods into Local Areas Act, 2000.
Subject to the provisions of this Act, a taxable person shall be entitled to input tax credit in respect of the tax, paid by him under the Punjab Tax on Entry of Goods into Local Areas Act, 2000 (Punjab Act No. 9 of 2000), if such goods are for sale in the State or in the course of inter- State trade or commerce
or in the course of export or for use in the manufacture, processing or packing or taxable goods for sale within the State or in the course of inter-State trade or commerce or in the course of export."
B .S. MEHANDIRATTA,
Secretary to Government of Punjab,
Department of Legal and Legislative Affairs

THE PUNJAB VALUE ADEED TAX ( FOURTH AMENDMENT) ACT, 2007

Notification No. 4-Leg./2008. Dated 9^th January, 2008
The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 8^th January, 2008, and is hereby published for general information :-
THE PUNJAB VALUE ADEED TAX ( FOURTH AMENDMENT) ACT, 2007
(Punjab Act No. 4 of 2008)
AN
ACT
further to amend the Punjab Value Added Tax Act, 2005.
Be it enacted by the Legislature of the State of Punjab in the Fifty-eighth Year of the Republic of India as follows :-
1. Short title and commencement
(1) This Act may be called the Punjab Value Added Tax (Second Amendment) Act, 2007.
(2) It shall be come into force at once.
2. Amendment of section 27 of Punjab Act 8 of 2005
In the Punjab Value Added Tax Act, 2005, in section 27, in sub-sections (1) and (2) for the words "two per cent", the words "four per cent" shall be substituted.
B .S. MEHANDIRATTA,
Secretary to Government of Punjab,
Department of Legal and Legislative Affairs
INSTAVAT COMMENT
Prior to amendment Sub section (1) and (2) of Section 27 read as under:
27. Tax deduction from the amount payable to works contractor -
(1) Notwithstanding anything contained in any of the provisions of this Act, every contractee responsible for making payment to any person (hereinafter in this section referred to as the contractor) for discharge of any liability on account of valuable consideration, exceeding rupees five lac in a single contract payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, shall, at the time of making such payment to the contractor either in cash or in any other manner, deduct an amount equal to two per cent of such sum towards the tax payable under this Act on account of such contract:
Provided that any individual or Hindu undivided family not registered under this Act, shall not be liable for deduction of such tax.
(2) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor or in pursuance of a contract with the sub-contractor, for the transfer of property in goods (whether as goods or in some other form) involved in the execution whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount, equal to two percent of such payment or discharge, purporting to be a part of the tax, payable under this Act on such transfer, from the bills or invoices raised by the sub-contractor, as payable by the contractor.
After amendment Sub section (1) and (2) of Section 27 read as under:
27. Tax deduction from the amount payable to works contractor -
(1) Notwithstanding anything contained in any of the provisions of this Act, every contractee responsible for making payment to any person (hereinafter in this section referred to as the contractor) for discharge of any liability on account of valuable consideration, exceeding rupees five lac in a single contract payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, shall, at the time of making such payment to the contractor either in cash or in any other manner, deduct an amount equal to four per cent of such sum towards the tax payable under this Act on account of such contract:
Provided that any individual or Hindu undivided family not registered under this Act, shall not be liable for deduction of such tax.
(2) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor or in pursuance of a contract with the sub-contractor, for the transfer of property in goods (whether as goods or in some other form) involved in the execution whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount, equal to four percent of such payment or discharge, purporting to be a part of the tax, payable under this Act on such transfer, from the bills or invoices raised by the sub-contractor, as payable by the contractor.

www.SalesTaxIndia.com Punjab Amendment Acts Regarding Insert Section Input tax credit for tax, paid under the Punjab Entry Tax and Increase Tax deduction Rate to 4 under Section 27		January 21, 2008
	India Sales Tax And VAT Database
THE PUNJAB VALUE ADEED TAX ( SECOND AMENDMENT) ACT, 2007
Notification No. 2-Leg./2008. Dated 9^th January, 2008 The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 8^th January, 2008, and is hereby published for general information :- THE PUNJAB VALUE ADEED TAX ( SECOND AMENDMENT) ACT, 2007 (Punjab Act No. 2 of 2008) AN ACT further to amend the Punjab Value Added Tax Act, 2005. Be it enacted by the Legislature of the State of Punjab in the Fifty-eighth Year of the Republic of India as follows :- 1. Short title and commencement (1) This Act may be called the Punjab Value Added Tax (Second Amendment) Act, 2007. (2) It shall be come into force at once. 2. Amendment of section 2 of Punjab Act 8 of 2005. In the Punjab Value Added Tax Act, 2005 , in section 2, in clause (zg), in the Explanation, item (6) shall be omitted. 3. Repeal and saving (1) The Punjab Value Added Tax (Second Amendment) Ordinance, 2007 (Punjab Ordinance No. 4 of 2007) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the Ordinance referred to in sub-section (1), shall be deemed to have been done or taken under the principal Act, as amended by this Act. B .S. MEHANDIRATTA, Secretary to Government of Punjab, Department of Legal and Legislative Affairs
THE PUNJAB VALUE ADEED TAX ( THIRD AMENDMENT) ACT, 2007
Notification No. 3-Leg./2008. Dated 9^th January, 2008 The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 8^th January, 2008, and is hereby published for general information :- THE PUNJAB VALUE ADEED TAX ( THIRD AMENDMENT) ACT, 2007 (Punjab Act No. 3 of 2008) AN ACT further to amend the Punjab Value Added Tax Act, 2005. Be it enacted by the Legislature of the State of Punjab in the Fifty-eighth Year of the Republic of India as follows :- 1. Short title and commencement (1) This Act may be called the Punjab Value Added Tax (Second Amendment) Act, 2007. (2) It shall be come into force at once. 2. Insertion of new section 13-A in Punjab Act 8 of 2005. 13-A. Input tax credit for tax, paid under the Punjab Tax on Entry of Goods into Local Areas Act, 2000. Subject to the provisions of this Act, a taxable person shall be entitled to input tax credit in respect of the tax, paid by him under the Punjab Tax on Entry of Goods into Local Areas Act, 2000 (Punjab Act No. 9 of 2000), if such goods are for sale in the State or in the course of inter- State trade or commerce or in the course of export or for use in the manufacture, processing or packing or taxable goods for sale within the State or in the course of inter-State trade or commerce or in the course of export." B .S. MEHANDIRATTA, Secretary to Government of Punjab, Department of Legal and Legislative Affairs
THE PUNJAB VALUE ADEED TAX ( FOURTH AMENDMENT) ACT, 2007
Notification No. 4-Leg./2008. Dated 9^th January, 2008 The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 8^th January, 2008, and is hereby published for general information :- THE PUNJAB VALUE ADEED TAX ( FOURTH AMENDMENT) ACT, 2007 (Punjab Act No. 4 of 2008) AN ACT further to amend the Punjab Value Added Tax Act, 2005. Be it enacted by the Legislature of the State of Punjab in the Fifty-eighth Year of the Republic of India as follows :- 1. Short title and commencement (1) This Act may be called the Punjab Value Added Tax (Second Amendment) Act, 2007. (2) It shall be come into force at once. 2. Amendment of section 27 of Punjab Act 8 of 2005 In the Punjab Value Added Tax Act, 2005, in section 27, in sub-sections (1) and (2) for the words "two per cent", the words "four per cent" shall be substituted. B .S. MEHANDIRATTA, Secretary to Government of Punjab, Department of Legal and Legislative Affairs INSTAVAT COMMENT Prior to amendment Sub section (1) and (2) of Section 27 read as under: 27. Tax deduction from the amount payable to works contractor - (1) Notwithstanding anything contained in any of the provisions of this Act, every contractee responsible for making payment to any person (hereinafter in this section referred to as the contractor) for discharge of any liability on account of valuable consideration, exceeding rupees five lac in a single contract payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, shall, at the time of making such payment to the contractor either in cash or in any other manner, deduct an amount equal to two per cent of such sum towards the tax payable under this Act on account of such contract: Provided that any individual or Hindu undivided family not registered under this Act, shall not be liable for deduction of such tax. (2) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor or in pursuance of a contract with the sub-contractor, for the transfer of property in goods (whether as goods or in some other form) involved in the execution whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount, equal to two percent of such payment or discharge, purporting to be a part of the tax, payable under this Act on such transfer, from the bills or invoices raised by the sub-contractor, as payable by the contractor. After amendment Sub section (1) and (2) of Section 27 read as under: 27. Tax deduction from the amount payable to works contractor - (1) Notwithstanding anything contained in any of the provisions of this Act, every contractee responsible for making payment to any person (hereinafter in this section referred to as the contractor) for discharge of any liability on account of valuable consideration, exceeding rupees five lac in a single contract payable for the transfer of property in goods (whether as goods or in some other form) in pursuance of a works contract, shall, at the time of making such payment to the contractor either in cash or in any other manner, deduct an amount equal to four per cent of such sum towards the tax payable under this Act on account of such contract: Provided that any individual or Hindu undivided family not registered under this Act, shall not be liable for deduction of such tax. (2) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor or in pursuance of a contract with the sub-contractor, for the transfer of property in goods (whether as goods or in some other form) involved in the execution whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount, equal to four percent of such payment or discharge, purporting to be a part of the tax, payable under this Act on such transfer, from the bills or invoices raised by the sub-contractor, as payable by the contractor.