Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: empanelment :: ACCOUNTING STANDARDS :: VAT RATES :: articles on VAT and GST in India :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: cpt :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4%
 
 
VAT (Value Added Tax) »
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill

Cigarette VAT hike not to puff up Punjab coffers
October, 09th 2013

Envisaged as a tool to curb smoking in the state and to increase the revenue, recent mammoth hike in value added tax (VAT) on sale of cigarettes in Punjab is proving dear to the state revenues.

Expecting voluminous increase in taxes from cigarette sales, the state government in its budget for the current fiscal had increased the VAT on fags by 144%. With 55% VAT, Punjab is charging the highest rate on cigarettes among the north Indian states.

However, despite huge hike in VAT, the tax returns are likely to remain nearly the same in the current fiscal against last financial year as the product is being diverted to the neighbouring states where VAT is lower and also due to increased chance of smuggling, revealed the officials.

"We had collected around Rs 100 crore as VAT from the sale of cigarettes in the state during the last fiscal. However, only over Rs 38 crore has been collected in five months of the current financial year. Despite huge increase in VAT, the tax collection is likely to remain nearly similar as that of last year," said sources.

Finance minister Parminder Singh Dhinda, while presenting the budget for the current fiscal, had increased VAT on fags to 55% from 22%.

Senior officials in the head office of excise and taxation department said import of cigarettes from manufacturing states to Punjab has significantly come down due to the hike in VAT.

"Since the neighboring states are charging VAT around 20-22%, there is scope of tax evasion with dealers showing sales in neighbouring states while smuggling the same into Punjab," officials added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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