Act No. 8 of 2005
8th April, 2005
An Act to provide for the levy and collection of value added tax and turnover tax on the sales or purchases of goods and for the matters connected therewith and incidental thereto, and for the repeal of the Punjab General Sales Tax Act, 1948.
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(1) The State Government shall, by notification in the Official Gazette, constitute a Tribunal to exercise the powers and discharge the functions conferred on it under this Act.
(2) The Tribunal shall consist of a Chairman and three other members to be appointed by the State Government.
(3) The Chairman shall either be a retired Judge of the High Court or a retired or serving officer of the rank of Chief Secretary to the State Government or Secretary to Government of India.
(4) The members appointed under sub-section (2), shall have the following qualifications and experience, namely:--
(1) The powers and functions of the Tribunal may be exercised and discharged by Benches constituted by the Chairman from amongst the members thereof--
(2) The single member referred to in clause (c) of sub-section (1), may either be the Chairman or any other member:
Provided that, if any case which comes up before a single member, who is not the Chairman or a Bench of which the Chairman is not a member, involves a question of law, such single member or Bench, as the case may be, may, in his or its discretion, reserve such case for decision by a Bench of which the Chairman shall be a member.
(3) Where an appeal or application is heard by a Bench consisting of three members, and the members differ in opinion on any point, then that point shall be decided in accordance with the opinion of the majority.
(4) W
(1) Every person, except a casual trader and one dealing exclusively in goods declared tax free under section 16, whose gross turnover during the year immediately preceeding the commencement of this Act or during any year subsequent thereto, exceeded the taxable quantum, as provided in clause (a) of sub-section (3), shall be liable to pay tax under this Act by way of VAT on the taxable turnover.
(2) Every person, except a casual trader and one dealing exclusively in goods, declared tax free under section 16, whose gross turnover during the year immediately preceeding the commencement of this Act or during any year subsequent thereto, exceeded the taxable quantum, as provided in clause (b) of sub-section (3), shall be liable to pay tax under this Act by way of TOT on the taxable turnover.
(3) For the purpose of this section, the expression 'taxable quantum' means--
The person registered under the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), shall be liable to pay VAT under this Act on any sale made by him within the State, irrespective of the fact that he is not liable to pay tax under section 6 of this Act. However, the provisions of this section shall not apply in case of a person, who deals exclusively in goods declared tax free under section 16.
(1) Subject to the provisions of this Act, there shall be levied on the taxable turnover of a person other than a registered person, VAT at such rate, as specified in Schedules, but not exceeding thirty paise in a rupee:
Provided that the rate of tax applicable on purchase or sale of declared goods, shall not exceed four per cent or such rate, as specified in clause (a) of section 15 of the Central Sales Tax Act, 1956.
(2) Notwithstanding anything contained in this section, where any goods are sold in container or are packed in any packing material, the rate of tax applicable to such container or packing material, shall, whether the price of the container or packing material is charged separately or not, be the same as is applicable to the goods, contained or packed therein and the turnover in respect of the container and packing material, shall be included in the turnover of such goods. Where the goods, sold in container or packed in packing material are tax free, th
Subject to the provisions of this Act, there shall be levied on the taxable turnover of sales of a registered person, TOT at a rate, not exceeding two paise in a rupee, as the State Government may specify, by notification, in the Official Gazette.
The amount of VAT or TOT shall be calculated to the nearest rupee by ignoring fifty paise or less and counting more than fifty paise as one rupee.
(1) No person, who, is not registered under this Act or if registered, is not liable to pay tax in respect of any sale or purchase, shall collect any amount by way of tax from any person.
(2) No person, who is registered under this Act, shall collect any amount by way of tax in excess of the amount of tax leviable under this Act.
(3) No person, who is registered under this Act, shall collect any amount by way of tax in respect of sale of goods, which are tax free under section 16.
(4) If a person collects tax in contravention of the foregoing provisions of this Act, he shall be liable to deposit the tax so collected immediately after such collection, in the Government treasury. In the event of failure of such person to deposit the tax, the Commissioner or the designated officer, as the case may be, shall, by order in writing, recover such tax, as per provisions of this Act.
(1) Liability of a registered person shall be calculated at the rate specified under section 9.
(2) Sale of taxable goods held in stock by a registered person on the appointed day, which were purchased without payment of tax under the repealed Act, shall be liable to tax at the rate, specified for those goods under this Act.
(3) A registered person, whose registration has been continued under section 21, shall furnish in such form and to such authority, as may be notified, a statement of taxable goods under this Act, held in stock on the appointed day, within a period of thirty days from the appointed day.
(4) A registered person shall not be entitled to input tax credit for any purchase.
(5) A registered person shall issue only a retail invoice for sale made by him and shall not be eligible to issue a VAT invoice.
(6) A registered person shall not be eligible to hold registration under the Central Sales Tax Act, 1956.
(1) A taxable person shall be entitled to the input tax credit, in such manner and subject to such conditions, as may be prescribed, in respect of input tax on taxable goods, including capital goods, purchased by him from a taxable person within the State during the tax period:
Provided that 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 of taxable goods for sale within the State or in the course of inter-State trade or commerce or in the course of export:
Provided further that a taxable person shall be entitled to partial input tax credit in any other event, as may be provided in this section in such manner and subject to such conditions as may be prescribed:
Provided further that if, purchases are used partially for the purposes specified in this sub-section and the taxable person is unable to identify the goods used for such purposes, then
(1) A taxable person, who was registered under the repealed Act and whose registration has been continued under section 21, shall be entitled to input tax credit in respect of the tax paid or payable under the repealed Act on the goods, other than capital goods, lying in stock with him on the appointed day, to such extent and in such manner and subject to such conditions, as may be prescribed. He shall, however, be eligible for input tax credit on capital goods, if he is in the business of resale of such goods:
Provided that such stock is out of the purchases made within twelve months prior to the appointed day.
(2) The taxable person, who intends to claim input tax credit under sub-section (1), shall within thirty days from the appointed day, furnish in the specified form to the designated officer, a statement of tax-paid goods held in stock.
(3) Input tax credit shall not be available on goods held in stock on the appointed day in respect of which, deduction
(1) Subject to the provisions of this Act, the net tax payable by a taxable person for a tax period, shall be determined by deducting the amount of input tax credit available to him (including input tax credit carried forward from the preceding tax periods, if any) from the output tax, payable by him during the tax period.
(2) If the amount of input tax credit, is more than the amount of output tax, the same may be adjusted, at the option of the taxable person, against the tax liability for the said tax period, if any, under the Central Sales Tax Act, 1956 and only the remaining amount of the Central Sales Tax shall be payable.
(3) Excess amount of input tax credit, if any, after adjustment under sub-section (2) shall be adjusted against any outstanding tax, penalty or interest under this Act or under the Central Sales Tax Act, 1956, as the case may be.
(4) Excess amount of input tax credit, if any, after adjustment under sub-section (2) and (3), may be carried
No tax shall be payable on the sale of goods specified in Schedule A and no person including a taxable person or a registered person shall charge tax on the sale of goods which are declared tax free under this section.
Where any taxable goods are exported outside the territory of India or are supplied in the course of such export falling within the scope of section 5 of the Central Sales Tax Act, 1956, such sales shall be zero-rated. On such sale, no output tax is payable by any person:
Provided that a taxable person making zero-rated sale shall be eligible for input tax credit in relation to such sales.
(1) The person or organizations listed in Schedule-G, shall be entitled to claim refund of tax, paid for goods, purchased in the State, on every single purchase, exceeding rupees five thousand, excluding tax amount, on proper application, subject to such conditions, as may be prescribed.
(2) A taxable person shall be entitled to claim refund in respect of input tax paid on goods exported out of the territory of India, subject to such conditions and the manner, as may be prescribed.
(1) Notwithstanding anything contained in this Act, there shall be levied VAT on the taxable turnover of purchase of the goods specified in Schedule-H at the rate applicable to such goods as per the Schedules.
(2) The tax shall be leviable on the first purchase of these goods from within the State. In case of Milk, however, first purchase shall be, when purchase is made by a manufacturer of taxable goods:
Provided that on subsequent sales of such goods, VAT on sale price shall be leviable as per the provisions of this Act.
(3) Subject to the provisions of this Act, the purchaser of the goods, specified in Schedule-H, shall have to be registered for VAT.
(4) The purchase tax paid by a taxable person, shall not be admissible as input tax credit, unless the goods are sold within the State or are used for manufacture of taxable goods in the State for sale or are sold in the course of inter-State trade or commerce or in the course of export.
(5) Input
(1) Where a taxable person purchases taxable goods from a person other than a taxable person or a registered person, and--
there shall be levied a tax on the taxable turnover of purchases of such goods at the rate applicable to such goods as per the Schedules:
Provided that no tax shall be levied under this section, if a tax has already been paid o
(1) No person other than a casual trader, who is liable to pay tax under this Act, shall carry on business, unless he is registered under this Act.
(2) Every person required to be registered under sub-section (1), shall make an application for registration, within a period of thirty days from the date when such person becomes liable to pay tax under this Act, in the prescribed manner to the designated officer.
(3) If the designated officer is satisfied that the application for registration is in order, he shall, in accordance with such manner and on payment of such fee, as may be prescribed, register the applicant and grant him a registration certificate in the prescribed form:
Provided that if the designated officer is satisfied that the particulars contained in the application are not correct, or are incomplete or that any evidence or information required for registering the applicant, is not furnished, he may, after necessary inquiry and after giving the app
(1) Subject to the provisions of sub-section (3) of section 6, any person except one dealing exclusively in goods declared tax-free under section 16, may apply in the prescribed manner to the designated officer for registration under this Act.
(2) The provisions of sub-section (2), (3) and (5) of section 21, shall apply in respect of applications for registration under this section.
(3) Every person, who has been registered upon application made under this section shall, for so long as his registration remains in force, be liable to pay tax under this Act whether his gross turnover exceeds the taxable quantum or not.
The designated officer may from time to time, by order in writing, amend registration on information furnished under section 76.
(1) The designated officer may, on an application made to him, or otherwise, by an order in writing, cancel registration, on--
(2) Where registration is cancelled under this section without making an application by the person concern
(1) Every person applying for registration under this Act, shall furnish a security of rupees fifty thousand in the manner, prescribed for securing proper and timely payments of tax or any other sum, payable by him under this Act:
Provided that the security already furnished by a person registered under the repealed Act, shall be deemed to have been furnished under this Act.
(2) The designated officer granting registration, may, on application made by a person for release discharge or refund of the security, order the release, discharge or refund of the whole security or any part thereof, furnished by him, if the same is not required.
Explanation.- The designated officer shall not be required to retain security or surety furnished by a person on behalf of a taxable person or registered person, if the registration of such a person has been cancelled under this Act and nothing remains due against such a person.
(3) Where it appears expedient to the designa
(1) Every taxable person shall make self assessment of tax and shall file return for a good period, within such time and in such form as may be prescribed.
(2) Every registered person shall make self assessment of tax and shall file return for a period, within such time and in such form as may be prescribed.
(3) Every person shall, in such manner, as may be prescribed, pay into a Government Treasury or any bank authorized to transact Government business or at the District Excise and Taxation Officer, the full amount of tax due from him as per provisions of this Act and shall furnish along with the returns, receipt from such Treasury or Bank or District Excise and Taxation Officer, as the case may be, showing the payment of such amount:
Provided that no payment of such amount shall be accepted at the District Excise and Taxation Officer, except through a bank draft or crossed cheque drawn on a local Scheduled Bank in favour of the designated officer.
(4)
(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 go
(1) The Commissioner or the designated officer with a view to ascertain the correctness of the return in general and admissibility of various claims, including input tax credit and refund, may audit or cause to be audited, any of the returns filed, documents or information or statutory forms submitted by a person, subject to such conditions and in such manner, as may be prescribed.
(2) For the purpose of audit under sub-section (1), The Commissioner or any designated officer, may, after due notice to the person to be audited proceed to examine the records, stock in trade and the related documents of the person. Such examination of records can be undertaken in any office of the Excise and Taxation Department of the State or at the business premises of the person.
(3) The audit under sub-section (1), may be carried out within a period of six years from the date of furnishing of returns.
(1) Where a return has been filed under sub-section (1) or sub-section (2) of section 26 or in response to a notice under sub-section (6) of section 26, if any tax or interest is found due on the basis of such return, after adjustment of any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the person specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under sub-section (11) and all the provisions of this Act shall apply accordingly:
Provided that except as otherwise provided in this sub-section, the acknowledgment of the return shall be deemed to be an intimation under this sub-section, in case, either no sum is payable by the person or no refund is due to him:
Provided further that no intimation under this sub-section shall be sent after expiry of one year from the end of financial year in whic
(1) Notwithstanding anything contained in section 29, where fraud or willful neglect has been committed with a view to evade or avoid the payment of tax or due tax has not been paid or a return has not been filed by or on behalf of a person, the designated officer may, for the reasons to be recorded in writing, make provisional assessment for any period to determine the tax liability so evaded, avoided or unpaid:
Provided that tax liability of such a person shall be assessed finally after he files his return in the prescribed manner.
(2) The provisional assessment under sub-section (1) shall be made within a period of six months from the date of detection. The Commissioner may, however, for reasons to be recorded in writing, extend the said period by another six months in a particular case referred to him by the designated officer.
(1) If a casual trader organizes a business event for sale or purchase of taxable goods in the State, he shall apply for permission to do so to the designated officer in the prescribed form, alongwith such fee, as may be prescribed.
(2) The designated officer on receipt of the application may grant permission in the prescribed form, subject to such conditions as may be prescribed.
(3) Where a business event for sale or purchase of taxable goods is organized by a taxable person or a registered person, he shall before organizing such event inform the designated officer in the prescribed manner.
(4) A casual trader organizing the business event, shall furnish, such amount of security, in the prescribed manner, as may be determined by the designated officer, keeping in view the nature and quantum of business, likely to be undertaken by the casual trader, but not exceeding rupees one lac.
(5) A casual trader, who brings taxable goods from outside the State, s
(1) If any person fails to pay the amount of tax due from him as per provisions of this Act, he shall, in addition to the amount of tax, be liable to pay simple interest on the amount of tax due from him at the rate of
(2) If a person having furnished a return under this Act, rectifies any error or omission as per sub-section (4) of section 26, which result in higher amount of tax to be due than the original return, such a person shall be liable to pay interest at the rate of one and half per cent per month, in respect of the additional amount of tax payable from the due date for payment till the date, he actually pays the additional amount of tax.
(3) If a person fails to declare the amount of tax in a return, which should have been declared, such a person shall be liable to pay simple interest at the rate of one and half per cent per month on such amo
Value Added Tax or Turnover Tax due or payable under this Act, shall be paid,--
Tax or any other amount due or payable by a person under this Act, shall be a debt, due to the State Government and shall be payable or recovered as per the provisions of this Act, and the rules framed thereunder.
Notwithstanding anything to the contrary contained in any contract or law for the time being in force, any amount of tax, penalty, interest and any other sum, payable by a taxable, registered or any other person under this Act, shall be the first charge on the property of such person from the date on which the amount becomes due and payable.
The amount of any tax, penalty, interest of any other sum due and payable under this Act, which remains unpaid after the due date, shall be recoverable as arrears of land revenue.
Payment made by a person towards the amount, due as a result of any order passed under this Act, shall first be adjusted, except in so far as the recovery of the said amount or part thereof is stayed under the provisions of this Act, against the interest payable by him on the date of payment and thereafter towards the amounts due as a penalty. Any amount remaining unadjusted, shall be adjusted towards the tax payable.
No person against whom any recovery proceedings under the provisions of this Act are pending, shall create a charge on or part with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, of any of his assets, with the intention to avoid or evade payment of any tax, penalty, interest or any other sum due or likely to become due. In case, any charge or transfer is made in violation of the provisions of this section; such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the taxable person, registered person or any other person, till the completion of the said proceedings:
Provided that such charge or transfer shall not be void, if it is made with the previous permission of the designated officer or the tax or any other amount due from such a person, has been fully secured for payment by furnishing a bank guarantee. In case of outstanding arrears, the designated officer shall inform
(1) Subject to the provisions of this Act and the rules made thereunder, the Commissioner or the designated officer shall, in such manner and with such period, as may be prescribed, refund to a person, the amount of tax, penalty or interest, if any, paid by such person in excess of the amount due from him and also the excess of input tax credit over output tax payable under this Act. The refund may either be by refund voucher or at the option of the person, by refund adjustment order as may be specified:
Provided that, the Commissioner or the designated officer shall first apply such excess amount towards the recovery of any amount due in respect of which a notice under section 29 has been issued or any amount, which is due, but not paid, as the case may be, and shall refund the balance, if any.
(2) Where any refund is due to any taxable person or registered person according to the return furnished by him for any period, such refund may provisionally be adjusted by hi
Where an amount required to be refunded by the Commissioner or the designated officer, to any person is not so refunded to him within a period of
Explanation.-- (1) If the delay in granting the refund within the aforesaid period of
(2) Where any question arises as to the period to be excluded in terms of Explanation (1), for the purposes of calculation of interest, such question shall be determined by the Commissioner, whose decision shall be fi
(1) Where an order giving rise to a refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the officer competent to grant such refund is of the opinion that the grant of the refund is likely to adversely affect the revenue, such officer may, with the previous approval of the Commissioner, withhold the refund till such time may be determined.
(2) Where a refund is withheld under sub-section (1), the Commissioner shall pay interest in accordance with the provisions of section 40 on the amount of refund ultimately determined to be due to the person as a result of appeal or further proceeding or any other proceeding for the period, from the date, immediately following the expiry of the period of ninety days from the date of the order referred to in sub-section (1), to the date of refund.
(1) Every taxable person, registered person, casual trader or any other person, who is required so to do by the Commissioner or the designated officer by notice served on him, shall keep a true account of the goods sold and purchased by him.
(2) If the officer referred to in sub-section (1), considers that the accounts kept are not sufficiently clear or intelligible to determine, whether or not a person is liable to pay tax during any period or the accounts are so kept as not to enable a proper scrutiny of the returns or the statements furnished, he may require such person by notice in writing to keep such accounts, including records of sales or purchases in such form or manner, as in his opinion are necessary for the purpose of proper assessment of tax.
(3) Every taxable person and registered person shall keep all his account books including those relating to his stock of goods or to purchases, sales and delivery of goods made by him or payments made or received, at
Every person whose gross turnover in a year exceeds the prescribed limit, shall have his accounts audited by an accountant and shall submit to the designated officer a VAT audit report in the prescribed form duly signed by such accountant and setting forth such particulars and certificates, as may be prescribed.
Explanation.-- in this section "accountant" means a charted accountant within the Charted Accountants Act, 1949 (Central Act No. 38 of 49), and includes any person, who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (Central Act No. 1 of 1956), is entitled to be appointed to act as an auditor of companies.
Every person required under this Act to keep and maintain account books or other records, shall retain them until the expiry of six years after the end of the year to which these relate or for such other period, as may be required or until the assessment becomes final, whichever is later.
(1) Every taxable or registered person or an agent of such person shall, in respect of the goods sold by him or on his behalf for the value, exceeding rupees one hundred, issue to the purchaser, in such manner, a VAT invoice or a retail invoice, as the case may be, containing such information, as may be prescribed.
(2) Each sale below rupees one hundred, where a VAT invoice or a retail invoice has not been issued, shall also be recorded in the account books on daily basis.
(3) Notwithstanding anything contained in sub-section (1) and (2) where a purchase asks for an invoice, it shall be issued by the person irrespective of the fact that value of the goods sold is less than rupees one hundred.
(4) Where the goods are transferred otherwise than by way of sale, the taxable or registered person shall, in respect of the goods transferred or consigned by him or on his behalf, issue to the consignee a delivery challan in such manner and containing such particulars, as
(1) The Commissioner or the designated officer, as the case may be, may, subject to such conditions, as may be prescribed, require any taxable person, registered person or any other person to product before him any account and document or to furnish information, relating to stocks of goods or sale, purchase and delivery of goods or payments made or received by the person or any other information relating to his business, as may be necessary.
(2) All accounts, registers and documents relating to stocks of goods or purchase, sale and delivery of goods, payments made or received by any taxable person, registered person or any other person and all goods kept in any place of business of any person, shall at all reasonable time be provided for inspection by an officer referred to in sub-section (1), and that officer may take or cause to be taken such copies or extracts of the said accounts, registers or documents and such inventory of the goods, as appear to him to be necessary.
(1) With a view to prevent evasion of tax and to ensure proper compliance of the provisions of this Act, the Commissioner or the designated officer may, from time to time, collect information in respect of sales and purchases effected by a person, class or group of persons and cause any of such sales and purchases to be cross-checked.
(2) The officer referred to in sub-section (1), may from time to time, require a person, class or group of persons to furnish such information, details and particulars, as may be specified in respect of sales and purchases effect by them during a particular period, to such authority and by such date, as may be required.
(3) The Commissioner or the designated officer, as the case may be, shall cause any of such transactions to be cross-checked by reference to the books of accounts of the purchasing and selling persons. For this purpose, the designated officer shall send a notice to the person, whose books of accounts are required for the
(1) With a view to identify persons, who are liable to pay tax under this Act, but have remained unregistered, the Commissioner may, from time to time, order survey of such unregistered persons to be conducted.
(2) The Commissioner or the designated officer, for the purpose of conducting survey under sub-section (1), may, by giving a notice, require any person, class or group of persons, to furnish the names, addresses and other particulars of the person or persons, who have purchased any goods from or sold any goods to any such person, class or group of persons during a given period.
(3) The officer referred to in sub-section (2), may, by issuing a notice, call for details and particulars of the services, provided by the financial institutions, Banking companies and other institutions, which shall be relevant and useful for the purpose of the survey. He may, from time to time, cause the results of the survey to be published in any manner that he deems proper. However
(1) The Commissioner may, for the purposes of better administration of this Act, direct that statistics be collected relating to any matter under this Act.
(2) Upon the direction made under sub-section (1), the Commissioner or the designated officer may, if found necessary, by notice in leading newspapers or in such other manner, as the Commissioner or the designated officer may deem fit, call upon all persons or, any class or group of persons to furnish such information or returns, as may be stated therein for the purpose of collection of statistics.
(3) Without prejudice to the generality of the foregoing provisions, the State Government may provide that every person or class or group of persons, registered under this Act, shall furnish, in addition to any other returns, provided for elsewhere, an annual return in such form, by such date and to such authority, as may be notified, and different provisions may be made for different classes or group of persons.
(1) Notwithstanding anything contained in section 69, if the State Government is of the opinion that it is necessary or expedient in the public interest to publish or disclose the names of any person or persons and any other particulars relating to any proceedings under this Act in respect of such person or persons, it may publish or disclose or cause to be published or disclosed such names and particulars in such manner as it may deem fit.
(2) No publication or disclosure under this section, shall be made in relation to any tax levied or penalty imposed or interest levied or any conviction inflicted for any offence, connected with any proceeding under this Act, until the time for presenting an appeal to the appropriate appellate authority has expired, if the appeal has not been filed or if the appeal has been filed, the same has been disposed of.
Explanation.-- In the case of a firm, company or other association of persons, the names of the partners of the firm, the
(1) If, with a view to prevent or check avoidance or evasion of tax under this Act, the State Government considers it necessary so to do, it may, by notification, direct for the establishment of a check post or, information collection centre or both at such place or places, as may be specified in the notification.
(2) The owner or person Incharge of a goods vehicle shall carry with him a goods vehicle record, goods receipt, a trip sheet or a log-book, as the case may be, and a sale invoice or bill or cash memo, or delivery challan containing such particulars, as may be prescribed, in respect of such goods meant for the purpose of business, as are being carried in the goods vehicle and produce a copy each of the aforesaid documents to an officer Incharge of a check post or information collection centre, or any other officer not below the rank of an Excise and Taxation Officer checking the vehicle at any place:
Provided that a person selling goods from within or outside
Whoever fails to make an application for registration, as required under sub-section (2) of section 21, shall be liable for penalty equal to the amount of tax, in addition to the tax due, and the interest payable from the date, the person becomes liable for registration as a taxable person or a registered person, as the case may be, till the application for registration is made.
If a person registered under this Act, fails to pay the amount of tax in accordance with the provisions of this Act, he shall be liable to pay, in addition to the tax and the interest payable by him, a penalty, at the rate of two per cent per month on the tax, so due and payable from the date, it had become due to the date of its payment, or to the date of the order of the assessment, whichever is earlier. The amount of penalty payable under this section, shall be calculated by considering a part of the month as one month.
If a person registered under this Act or any other person required to furnish return or annual statement without sufficient cause--
the Commissioner or the designated officer, may, direct him to pay in addition to tax, interest and penalty under any other provisions of this Act, a further penalty of a sum of rupees one hundred, per day of default, subject to the maximum of rupees ten thousand.
Where a person collects tax in contravention of the provisions of this Act, he shall be liable to pay by way of penalty, a sum equal to one and half times of the tax so collected.
If the Commissioner or the designated officer is satisfied that the person, in order to evade or avoid payment of tax--
he shall direct that the person shall pay, by way of penalty, in addition to the tax and interest payable by him, a sum equal to twice the amount of tax, assessed account of the aforesaid reasons.
(1) A person, who fails to issue invoice for any sale transaction as required under section 45, shall be liable to pay a penalty of rupees two thousand or double the amount of tax involved in the transaction, whichever is higher.
(2) A person, who issues a false invoice or receives and uses an invoice knowing such invoice to be false, shall be liable, to pay a penalty of rupees five thousand or double the amount of tax involved in the false invoice, whichever is higher.
A person, who knowingly uses a false VAT registration number or TOT registration number, or uses a registered number of another person with a view to evade payment of due tax, he shall be liable to pay in addition to the due tax, penalty equal to the amount of tax evaded on his account.
Where a person fails to make payment of the tax assessed or interest levied or penalty imposed on him or any other amount due from him under this Act within a period of thirty days from the date of service of the notice of demand, he shall be liable, in addition to the interest and the amount due, to pay, by way of penalty, a sum equal to two per cent per month of such amount of tax, penalty, interest or any other amount due for the period for which payment has been delayed by him after the date on which such amount was due to be paid.
(1) Whosoever contravenes or fails to comply with, any of the provisions of this Act or the Rules made thereunder or any order or direction made or given thereunder, shall, if no other penalty is provided under this Act for such contravention or failure, be liable to pay penalty, not exceeding rupees ten thousand subject to a minimum of rupees one thousand.
(2) Where such contravention or failure continues thereafter, the person shall be liable to pay a further penalty of rupees one hundred per day from the due date specified for payment penalty under sub-section (1).
The Commissioner or the designated officer shall be the competent authority officer to impose penalty under this Act. No penalty shall, however, be imposed, unless the person concerned is afforded an opportunity of being heard by serving a notice.
(1) An appeal against every original order passed under this Act or the Rules made thereunder shall lie,--
(2) An order, passed in appeal by a Deputy Excise and Taxation Commissioner or by the Commissioner or any officer on whom the powers of the Commissioner are conferred, shall be further appealable to the Tribunal.
(3) Every order of the Tribunal and subject only to such order, the order of the Commissioner or any officer exercising the powers of the Co
(1) A person or authorized officer of the State Government, feeling aggrieved with the order of the Appellate Authority, made under this Act, may file an appeal before the Tribunal.
(2) The appeal can be filed within a period of thirty days from the date of the communication of the order of the first Appellate Authority.
(3) The Tribunal may, on an application made by the appellant, order the stay of the recovery of the amount involved, subject to the payment of minimum twenty five per cent of the amount and fulfillment of such other conditions, as it may deem necessary.
(4) In deciding an appeal, the Tribunal after affording an opportunity of being heard to the parties, may make an order--
(5) The Tribunal shall pass a speaking order while deciding an appeal and send copies of t
Notwithstanding anything contained in sub-section (4) of section 62 and sub-section (2) of section 63, the appellate authority may, in the interest of justice, for the reasons to be recorded in writing, condone delay in cases where appeal is not filed within the stipulated period.
(1) The Commissioner or designated officer may, at his own motion call for the record of any proceedings, which are pending before or have been disposed of by any authority subordinate to him for the purpose of satisfying himself as to the legality or propriety of such proceedings or order made therein and may pass such order in relation thereto as he may think fit.
(2) A Tribunal, on application made to it against an order of the Commissioner under sub-section (1), within a period of thirty days from the date of communication of the order, may call for and examine the record of any such case and pass such order thereon, as it thinks just and proper.
(3) No application for revision under sub-section (2), shall be entertained unless such application is accompanied by satisfactory proof of the prior minimum payment of twenty five per cent of the total amount of tax, penalty and interest, if any.
(4) No order shall be passed under this section, which adversely aff
(1) The Commissioner or a designated officer may, at any time within three years from the date of any order passed by him, not being an order passed under sub-section (2) or sub-section (3), of section 29 at his own motion, rectify any mistake apparent from the record, and shall within a like period rectify any such mistake, which has been brought to his notice by any person affected by such order:
Provided that no such rectification shall be made, if it has the effect of enhancing the tax or reducing the amount of refund without affording an opportunity of being heard to the affected person.
(2) The Tribunal any suo-moto or on a reference from the affected person or the Commissioner or any other officer so authorised by the Commissioner may, consider rectification of an order passed by it. The provision of sub-section (1) shall apply mutatis mutandis to the rectification of mistake by the Tribunal.
(3) Where any such rectification has the effect of reducing th
No appeal or revision shall lie against--
(1) An appeal or revision shall lie of the High Court from every order passed in appeal or revision by the Tribunal, if the High Court is satisfied that the case involves a substantial question of law.
(2) The Commissioner or a person aggrieved by any order passed by the Tribunal, may file an appeal to the High Court and such appeal shall be--
(3) Where the High Court is satisfied that a substantial question of law is involved in any case, shall formulate that question.
(4) The appeal or revision shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal or revision, be allowed to argue that the case does not involve such question:<
(1) Subject to provisions of section 50, all particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act or in any evidence recorded in the course of any proceedings under this Act, other than the proceedings before a Criminal Court, shall, save as provided in sub-section (2) be treated as confidential.
(1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) The rules under this Act, may be made either with prospective effect or with retrospective effect :
Provided that the rules shall be made under this Act with retrospective effect only, if the same are required to be made in public interest.
(3) Every rule made under this Act shall be laid, as soon as may be, after it is made, before the House of the State Legislature, while it is in session, for a total period of ten days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session in which it is so laid or the successive sessions as aforesaid, the House agrees in making any modification in the rules, or the House agrees, that the rules should not be made, the rules shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that
A memorandum of appeal filed under section 62 and 63, and an application for revision made under 65, shall bear court fee stamps of such value, as may be prescribed.
(1) Notwithstanding the period of limitation provided for assessment or amended assessment in section 29 or in any other provisions of this Act, the assessment or amended assessment may be made at any time in consequence of or to give effect to, any order made by any court or other authority, in exercise of the powers vested in it under the law for the time being in force.
(2) Where the assessment proceedings relating to any person remained stayed under the orders of any court or other authority for any period, such period shall be excluded in computing the period of limitation for assessment or amended assessment provided under this Act.
(1) A person, who is entitled or required to attend before any authority in connection with any proceedings under this Act, may represent through an agent. For the purpose of this section, an agent means a person authorised by the principal in writing to appear on his behalf before a designated officer, the Commissioner or the Tribunal or any other officer appointed by the State Government to assist the Commissioner under sub-section (1) of section 3 being,--
The Commissioner or any officer, appointed to assist him under sub-section (1) of section 3, may, for carrying out the purposes of this Act, by an order in writing, require any person, including a banking company, Railways, Post Office or any officer thereof to furnish any information or statement, useful for or relevant to any proceeding under this Act.
Subject to such conditions, as may be prescribed, the Commissioner may, by an order in writing, delegate any of his powers under this Act, to any officer appointed under sub-section (1) of section 3 to assist him :
Provided that the powers conferred upon the Commissioner specifically by the State Government shall not be delegated.
If any taxable person or registered person--
he shall, inform the designated officer in the prescribed manner, and, if any such person dies his legal representative shall in the like manner, inform the said authority.
Where the ownership of the business of a person is entirely transferred and the transferee carries on such business either in the same name or in some other name, the transferee shall for the purposes of this Act, be deemed to be and to have always been registered as if, the registration of such person had initially been granted to the transferee; and the transferee shall on application to the designated officer, be entitled to have the registration amended accordingly in the prescribed manner.
Notwithstanding anything to the contrary contained in this Act, a person whose registration has been cancelled, shall be liable to pay tax on the unsold stock, held on the date of cancellation, as per the provisions of this Act.
(1) Notwithstanding anything contained in the Indian Partnership Act, 1932 or any agreement to the contrary, where any firm is liable to pay tax under this Act, the firm and each of the partners of the firm, shall be jointly and severally liable for such payments and accordingly any notice or order under this Act, may be served on any person, who was a partner during the relevant time whether or not the firm has been dissolved and all the provisions of this Act shall apply accordingly.
(2) Where any such partner retires from the firm, he shall be liable to pay the tax, penalty, sum forfeited and interest remaining unpaid at the time of his retirement and any such amount due up to the date of retirement, though un-assessed on the date.
(1) Where a person, liable to pay tax under this Act, dies then--
(1) Where any person sells or purchases any taxable goods on behalf of the principal, any taxable goods despatched to/by him from/to outside the State, then such person and his principal, shall both be jointly and severally liable to pay tax on the turnover of such sales or purchases.
(2) If the principal, on whose behalf the Commission agent has sold or purchased any goods, shows to the satisfaction of the Commission that the tax has been paid by such Commission agent on such goods under sub-section (1), the principal shall not be liable to pay the tax again in respect of the same transaction.
(3) Where a manager or an agent of a non-resident person sells or purchases any goods on behalf of a non-resident person in the State, then the non-resident person and the manager or agent residing or working in the State, shall be jointly and severally liable to pay tax on the turnover of such sales or purchases :
Provided that, if the non-resident person shows to the s
(1) When two or more companies are to be amalgamated by the order of a Court or of the Central Government and the order is to take effect from a date earlier to the date of the order, and such companies have sold or purchased any goods to or from each other in the period commencing on the date from which the order is to take effect, and ending on the date of the order, then such transactions of sale or purchase shall be included in the turnover of the sales or the purchases of the respective companies and will be assessed to tax accordingly.
(2) Notwithstanding anything contained in the said order, for all purposes of this Act, the said two or more companies shall be treated as distinct companies and shall be treated as such for all periods up to the date of the said order and the registration of the said companies under this Act shall be cancelled with effect from the date of the said order.
(3) The words and expressions used in this section, but not defined, shall h
(1) Every person--
(2) The Commissioner or the designated officer shall, after making such inquiries or calling for such information, as he may deem fit, notify the liquidator within three months from the date on which he received notice of appointment of the liquidator, the amount which in the opinion of the Commissioner or the designated officer, would be sufficient to provide for any tax, interest or penalty, which is then, or is likely thereafter, to become payable by the company.
(3) Notwithstanding anything contained in the Companies Act, 1956, w
Notwithstanding anything contained in this Act, a tax on the sale or purchase of goods shall not be imposed under this Act,--
Provided that the last sale or purchase of any goods preceding the sale or purchase occasioning the export of such goods out of the territory of India, shall also be deemed to be in the course of such export, if such last sale or purchase takes place after making an agreement or order
If any question arises, otherwise than in proceeding before a Court of before the commencement of assessment of a person under section 29, whether or not, for purposes of this Act,--
An officer exercising the powers under this Act, may take the assistance of any police officer or other officer of the State Government, as and when required and upon such request for assistance being made, the police officer or the other officer, shall render necessary help in accordance with law.
(1) In exercising the functions conferred on it by or under this Act, the Tribunal or the Commissioner or the officers appointed under sub-section (1) of section 3, to assist the Commissioner, shall have all the powers conferred on a Civil Court under the provisions of the Civil Procedure Code, 1908 (Central Act 5 of 1908) in respect of the following matters, namely--
(2) In the case of an affidavit, any officer appointed under sub-section (1) of section 3, may administer the oath to the deponent.
(3) Any proceeding under this Act before the Tribunal or the Commissioner any person appointed to assist the Commissioner under sub-section (1) of section 3, shall be deemed to
No assessment made and no order passed under this Act or the rules made thereunder, shall be called into question in any Civil Court.
No suit, prosecution or other legal proceedings shall lie against any officer or servant of the State Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
The burden of proving that any sale or purchase, effected by a person, is not liable to tax under this Act or to prove entitlement for input tax credit on any purchase, shall be on such person.
(1) If any difficulty arises in giving effect to any of the provisions of this Act, the State Government may, by order published in the Official Gazette, make such provision not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty :
Provided that no order shall be made under this section after the expiry of a period of two years from the date of commencement of this Act.
(2) Every order made under this section, shall be laid, as soon as may be, after it is made, before the Legislative Assembly.
(1) With effect from the date of coming into force of this Act, the Punjab General Sales Tax Act, 1948 (Punjab Act 46 of 1948), shall stand repealed.
(2) The repealing of the Act under sub-section (1) shall not,--
and any such penalty, forfeiture or punishment or any proceeding or remedy instituted, continued, or enforc
(1) A person, who would have continued to be liable to pay tax under repealed Act, had this Act not come into force, shall be deemed to be registered under this Act, till a fresh registration is granted to him under this Act or till a period of sixty days expires from the date of the appointed day, whichever is earlier.
(2) Notwithstanding anything contained in this Act,--
The Punjab Value Added Tax Ordinance, 2005 (Punjab Ordinance 5 of 2005), is hereby repealed.
| Sr. No. | Name of the Commodity |
|---|---|
| 1. | Bullions |
| 2. | Gold, Silver and Platinum Ornaments |
| 3. | Noble Metals and Ornaments |
| 4. | Precious Stones |
| Sr. No. | Name of the Commodity |
|---|---|
| 1. | Aviation Turbine Fuel |
| Sr. No. | Name of the Commodity | Rate of tax |
|---|---|---|
| 1. | Diesel | 8.8 per cent |
| 2. | 22 per cent | |
| 3. | ||
| 4. | Petrol | 27.5 per cent |
Goods not mentioned in any other Schedule
(1) United Nations and its constituent agencies like :
(2) Diplomatic Missions
(1) This Act may be called the Punjab Value Added Tax (Amendment) Act, 2016.
(2) It shall come into force on and with effect from the date of its publication in the Official Gazette.
In the Punjab Value Added Tax Act, 2005, in section 68, in sub section (7), for the words "shall not be stayed", the words and signs "may be stayed, for the reasons to be recorded in writing after hearing the State," shall be substituted.
(1) The Punjab Value Added tax (Amendment) Ordinance, 2016 (Punjab Ordinance No. 5 of 2016) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance referred to in sub-section (1), shall be deemed to have been done or taken under this Act.
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