Punjab Govt introduces First Stage Tax on some items

Punjab Government has introduced Tax on First Stage of Production or import in the state, on some of the items. This is against the concept of VAT where tax is levied on the value addition on each stage. The Notifications are below:

GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE & TAXATION

(EXCISE AND TAXATION-II BRANCH)

NOTIFICATION

The 13th December, 2013

S.O.116/P.A8/2005/S.8/2005/S.8/2013 - Whereas the State Government is satisfied that circumstances exist, which render it necessary to take immediate action in public interest;

Now, therefore, in exercise of the powers conferred by sub section (3) of section 8 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 effect from 1st January, 2014, by dispensing with the condition of previous notice, namely:-

AMENDMENT

In the said Schedule 'A', after serial No.85, the following serial No. 86 to 91 and the entries relating thereto, shall be added. These commodities shall be tax free at the wholesaler or distributor or retailer stage provided that tax has already been paid at the first point of sale i.e manufacture or first importer's stage.

Sr. No        Commodity Name
86               All types of Televisions, Refrigerators, Washing Machines, Microwave ovens,
                   Oven Toaster Grillers (OTGs), Home Theatres, and Air Conditioners
87               Kitchen Appliances like sandwich makers, tea/coffee makers, juicer mixer
                   grinders (JMGs), hand blenders, electric rice cookers, electric tandoors,
                   induction cook tops, electric chimneys, electric fryers
88               Cold Drinks (Aerated Drinks)
89               All types of personal care products such as deodorants, shaving products,
                   beauty soaps, shampoos, hair oil, conditioners, serums, hair care
                   products, tooth pastes, hand wash, body wash, beauty products, hair
                   gels, bathing gels, talcum powders, creams, anti-persiprants, petroleum
                   jellies, baby care products, skin care lotions and after shaving lotion
90               All types of soaps and detergents such as washing bars and soaps, fabric
                   softeners, bleach, gentle wash, dish wash, color care, Neel
91               All types of branded or packaged food products such as chips, wafers,
                   chocolates, toffees, ice creams, Corn Flacks, pasta, macroni, biscuits,
                   frozen desserts, frozen products, meal makers, instant soups , instant
                   noodles, ready to eat products, namkeens, custard powder, snacks,
                   bakery products, baby foods etc.

D.P. REDDY,

Financial Commissioner Taxation and

Secretary to Government of Punjab,

Department of Excise and Taxation.

GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE & TAXATION

(EXCISE AND TAXATION-II BRANCH)

NOTIFICATION

The 13th December, 2013

NO S.O 117/P.A.8/2005/S.8/2013- Whereas the State Government is satisfied that circumstances exist, which render it necessary to take immediate action in public interest;

Now, therefore, in exercise of the powers conferred by sub section (3) of section 8 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 effect from 1st January, 2014, by dispensing with the condition of previous notice, namely:-

AMENDMENT

In the said Schedule 'E', and the entries relating thereto, shall be added. These commodities shall be taxable
at the first point of sale i.e manufacturer or first t the rates specified against these entries in the Table given below, namely:-
Sr. No   Commodity Name                                                        Rate of Tax
15         All types of Televisions, Refrigerators, Washing Machines,
             Microwave ovens, Oven Toaster Grillers (OTGs), Home Theatres,
             and Air Conditioners
                                                                                               14.5 per cent
16         Kitchen Appliances like sandwich makers, tea/coffee makers,
             juicer mixer grinders (JMGs), hand blenders, electric rice cookers,
             electric tandoors, induction cook tops, electric chimneys, electric
             fryers
                                                                                              14.5 per cent
17         Cold Drinks (Aerated Drinks)                                    22.5 per cent
18         All types of personal care products such as deodorants, shaving
             products, beauty soaps, shampoos, hair oil, conditioners, serums,
             hair care products, tooth pastes, hand wash, body wash, beauty
             products, hair gels, bathing gels, talcum powders, creams, antipersiprants,
             petroleum jellies, baby care products, skin care
             lotions and after shaving lotion
                                                                                            14.5 per cent
19         All types of soaps and detergents such as washing bars and
             soaps, fabric softeners, bleach, gentle wash, dish wash, color
             care, Neel
                                                                                           14.5 per cent
20        All types of branded or packaged food products such as chips,
            wafers, chocolates, toffees, ice creams, Corn Flacks, pasta,
            macroni, biscuits, frozen desserts, frozen products, meal makers,
            instant soups, instant noodles, ready to eat products, namkeens,
            custard powder, snacks, bakery products, baby foods etc.
                                                                                          14.5 per cent

D.P. REDDY,

Financial Commissioner Taxation and

Secretary to Government of Punjab,

Department of Excise and Taxation.