Punjab VAT Notification for Reversal of ITC if goods sold below purchase price

GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE AND TAXATION

(Excise and Taxation II Branch)

NOTIFICATION

The 8^th November 2010

NO. G.S.R.     /P.A.8/2005/S.70/Amd.(   )/2010- In exercise of the powers conferred by sub-section (1) of Section 70 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 make the following rules, further to amend the Punjab Value Added Tax Rules, 2005 , namely:-

RULES

1.             (1)  These rules may be called the Punjab Value Added Tax (_______ Amendment) Rules, 2010.

 (2)      They shall come into force on and with effect from the date of their publication in the Official Gazette.

2.        In the Punjab Value Added Tax Rules, 2005 in rule 21, after sub-rule (2), the following sub rule shall be inserted, namely :-

            “ (2-A)         Input Tax Credit shall be allowed to a taxable person to the extent of tax payable on the resale value of goods or sale value of manufactured/ processed goods where such goods  by the taxable person are sold at a price,-

       (i)           Lower than purchase price of such goods in the case of resale; or

(ii)                 Lower than Cost price in the case of manufactured/Processed goods; and in such cases the balance Input Tax Credit (ITC) shall be reversed by the taxable person.”

        SHIVINDER SINGH BRAR

                                                                    Financial Commissioner Taxation and 

        Secretary to Government of Punjab

                                                                    Department of Excise and Taxation