An amendment in the Punjab Passenger and Goods Taxation Rules, 1952 to revise the rates of goods tax on commercial vehicles that were last revised in June, 2005 approved.
- Chandigarh, June 30 – Haryana Cabinet which met under the Chairmanship of Chief Minister Mr Manohar Lal today approved an amendment in the Punjab Passenger and Goods Taxation Rules, 1952 to revise the rates of goods tax on commercial vehicles that were last revised in June, 2005. The rates of goods tax on commercial vehicles have now been rationalized and revised in order to keep up with the passage of time and the rates in the neighbouring States.
Existing Goods Tax Slabs
Proposed Goods Tax Slabs
Tax Rate w.e.f. 7.6.2005
Tax Rate proposed
Upto one tonne
Rs. 4000/- per annum
(Exempted w.e.f. 06.06.2014)
Upto 1.2 tonnes
Exceeding one tonne but not exceeding 10 tonnes
Rs. 4,000/- per annum
Exceeding 1.2 tonnes but not exceeding 6 tonnes
Rs. 6,000/- per annum
Exceeding 10 tonnes but not exceeding 17 tonnes
Rs. 5,600/- per annum
Exceeding 6 tonnes but not exceeding 16.2 tonnes
Rs. 7,200/- per annum
Exceeding 17 tonnes
Rs. 12,000/- per annum
Exceeding 16.2 tonnes but not exceeding 25 tonnes
Rs. 12,000/- per annum
Exceeding 25 tonnes
Rs. 18,000/- per annum
- This will also bring in additional tax revenue to the State, to the extent of about Rs 170 crore per annum. The Cabinet also approved the amendment in Rule 25 of the HVAT Rules, 2003 provides for deductions to be made from the gross turnover of a dealer on the basis of an objection of the Punjab & Haryana High Court.
- The amendment in Rule 25 of the HVAT Rules, 2003 has been approved to streamline and clarify the provisions for allowing deductions of value of land from the gross turnover of a works contractor. The amendment in Rule shall come into force with effect from 17.5.2010, the day the existing Rule was inserted in the HVAT Rules, 2003. This amendment will facilitate the Tax Authorities in deciding the pending cases of assessment, re-assessment and revision relating to builders/works contractors/developers in accordance with law.
- The Cabinet also approved the amendment in Schedule E appended to the Haryana Value Added Tax Act, 2003 to restrict the input tax to the extent of the amount of tax actually paid on purchase funds goods on sale of goods in the course of inter-state trade and commerce and to the extent of output tax liability when goods are sold at a lower price than the purchase price.
- As per the amendment, a VAT dealer may claim Input Tax Credit (ITC) of the amount of tax paid by the purchasing dealer to the selling dealer, and may further claim refund of the input tax if the input tax exceeds the output tax liability. A VAT dealer conducting inter-state sales may claim refund of input tax on account of difference in the rate of tax on purchase of goods and rate of tax on sale of goods in the course of inter-state trade and commerce.
- The Cabinet also approved the Promulgation of Ordinance for amending Section 2(1) (w) and Section 8(1), (2) and (3) of the HVAT Act, 2003. As per provisions of Section 8 of the Haryana Value Added Tax Act, 2003, a VAT dealer is entitled to claim input tax paid by the purchasing dealer to the selling dealer. It is seen that in some cases, the purchasing VAT dealer can claim input tax even though the selling dealer has not actually deposited its tax liability into the Government Treasury.
- Through this ordinance, it is proposed to amend Section 2 and Section 8 of the HVAT Act, 2003, to deny undue claim of input tax in cases where tax has not actually been paid to the Government.
- The Cabinet also approved the Promulgation of Ordinance to extent the limit period under Sections 15A, 16, 17 and 34 of the HVAT Act, 2003. Section 15A provides for provisional assessment of a dealer, Section 16 provides for assessment of unregistered dealers liable to tax, Section 17 provides for re-assessment of tax and Section 34 provides for revision of any order passed by any Taxing Authority or Appellate Authority other than the Tribunal to remove the illegality or impropriety.
- The amendment in section 15 A will enable a Taxing Authority to frame provisional assessment even in cases where the financial year has ended. The amendment in section 16 will enable the assessing authority to fully and properly assess the tax liability of unregistered dealers whose liability of tax has arisen in view of the judgement of the Supreme Court by extending the limitation period to six years.
- Extension of limitation perios to three years in section 17 will enable the taxing authorities to reassess cases where some definite information has come into the possession of an assessing authority where the dealer has been under assessed or some turnover has escaped assessment.
- The extended limitation period from three years to six years under section 34 will enable the revisional authority to revise those cases wherein some illegality or impropriety pre-judicial to the interest of the revenue of the state is noticed. It will also enable the revisional authority to revise the cases of those builders and developers whose assessment was not framed in accordance with the law declared by the Supreme Court in the case of L and T Limited.
- The Supreme Court in its judgment in the case of L&T Limited Vs. State of Karnataka delivered on 26.9.2013, laid down a clear position by holding that once the developer or the builder enters into an agreement to sell the property with the prospective buyers before completion of construction, the construction activity carried out after such agreement become a works contract and such developer/builder needs to be assessed as a works contractor.