Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: empanelment :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: cpt :: VAT Audit :: form 3cd :: ACCOUNTING STANDARD :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT RATES
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

Change in tax name to change state's fortunes
October, 04th 2013

By just changing the name of the "entry tax" to "advance tax" to be imposed on imported goods, the Punjab government on Thursday tried to plug an alarming leakage in tax collection.

Top government sources say the "entry tax" due to a legal lacuna was being exploited to the hilt by the traders, which led to a sharp decline in collection of the tax in the past two years.

In the financial year 2010-11, Punjab had generated Rs. 2,529 crore under the entry tax. But it kept shrinking after traders challenged it in the court and during this fiscal the cash-strapped SAD-BJP government expected to collect Rs. 624 crore.

The Punjab cabinet, which met here on Friday, gave nod to convert entry tax into advance tax. This 6.05% tax will be imposed on tax evasion-prone general items such as thread, scrap, etc, and is over and above the VAT.

"In a bid to check the evasion of tax by many dealers through bogus firms, the cabinet amended the provisions of the VAT Act to enable collection of advance tax on the entry of certain items into the state," a government spokesperson said.

The excise and taxation department had found that many dealers were floating bogus firms while making huge transactions from outside Punjab without paying any tax. To curb the tax evasion, the Punjab government imposed entry tax on certain items, enriching the state coffers substantially.

Feeling the heat of the tax, some genuine dealers petitioned the Punjab and Haryana high court challenging the entry tax. The high court allowed the petitioners to import goods without paying the entry tax by furnishing an undertaking.

"Taking advantage of the court order, thousands of dealers began submitting undertakings. During the scrutiny, we found that a large number of traders were fly-by-night operators and revenue collections from entry tax came down alarmingly," said a senior government official.

The advocate general office advised the government to amend the provisions of the VAT Act to begin collection under "advance tax" on imported goods.

Sources say that during inquiries it came to the fore that a number of dealers who imported goods into the state either sold them or used them for manufacturing. Later, such traders were not traceable. "Thus they escaped the liability to pay tax due to the state," the excise and taxation department argued before the cabinet.

The department also found that certain unscrupulous dealers were indulging in "benami" transactions by floating firms in the name of someone else. In such "benami" cases, by the time the assessment was framed, the dealers who imported the goods were not available on the given address, said an officer.

Curbing tax theft on cigarettes

The Punjab cabinet on Friday approved "first point taxation regime" on cigarettes to curb tax theft.

Punjab imposes 55% tax on cigarettes and generates about Rs. 125 crore per annum. The excise and taxation department had found that the wholesale cigarette dealers had been getting refund of 55% tax by showing their stock as inter-state sale. Under this strategy, they were paying 2% central sales tax to retain the remaining 53% tax.

Now on, the subsequent sale (after paying 55% tax) of cigarettes will be tax free and there will be no refund or exemption.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions