TMI BlogPVAT Act 2005 – Declared Goods except wheat and paddy will be taxable @ 4.4% w.e.f 08/04/2011X X X X Extracts X X X X X X X X Extracts X X X X ..... PVAT Act 2005 – Declared Goods except wheat and paddy will be taxable @ 4.4% w.e.f 08/04/2011 - By: - AMIT BAJAJ ADVOCATE - Value Added Tax - VAT and CST - Dated:- 20-4-2011 - - Ceiling rate on declared goods have been enhanced from 4% to 5% by Central Govt in the Budget of 2011-12. Which follows that rate of tax on declared goods cannot exceed 5%. Rate of tax on paddy and wheat has been enhance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Punjab Govt from 4% to 5% by including these goods in schedule B of PVAT Act 2005. Question arises what will be the rate of tax under PVAT Act on other declared goods. Declared goods are included in Schedule C-I of PVAT Act 2005 under which the rate of tax is 4%. Now the question is whether surcharge @ 10% will be applicable on other declared goods as well after the enhancement of ceili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng rate on declared goods from 4 to 5% by Central Govt. Section 8-B of PVAT Act which levies an additional tax @ 10% on the tax payable by a taxable person runs as under: 8-B (1) Levy of additional tax. Notwithstanding anything contained in this Act, there shall be levied and collected on the taxable turnover of a person, other than the registered person, an additional tax, which shall be ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculated at the rate of ten percent of the tax , payable by him under this Act: Provided that the aggregate of tax and the surcharge payable under this Act, shall not exceed in respect of the goods, declared to be of special importance in inter-state trade or commerce under section 14 of the Central Sales Tax Act, 1956 , the rate fixed under section 15 of that Act. (2) Except as otherw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise provided in sub-section (1), the provisions of this Act shall, so far as may be, apply in relation to the additional tax, leviable under sub-section (1) as they apply in relation to the tax, leviable under any other provision of this Act. Section 8-B does not prohibit levy of surcharge on declared goods but it only says that the rate of tax on declared goods and surcharge payable under this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act shall not exceed the ceiling rate as fixed u/s 15 of CST Act(Which is now 5% w.e.f 08-04-2011 after the passing of Budget 2011-12) Thus from the proviso to section 8-B it follows that rate on declared goods (other than Paddy and wheat which are taxable @ 5% now), will be @ 4.4% and surcharge would be applicable on other declared goods as well, since the ceiling rate has been enhanced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 5% u/s 15 of CST Act by Central Govt. and such rate of 4.4% will be applicable w.e.f 08-04-2011 i.e. the date of passing of the Budget 2011-12. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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