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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: due date for vat payment :: TDS :: empanelment :: VAT RATES :: VAT Audit :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: list of goods taxed at 4% :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT
VAT (Value Added Tax) »
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales
 VAT sops to IOCL Paradip refinery hits Odisha revenue growth
 Government to announce new VAT rates in October
 World Wide Gst, Vat, Sales Tax Rate
 Article on Transition Process of Registrations under VAT / Service Tax Laws to GST Law

Vat effect: Punjabis shifting marriage venues to Haryana
October, 23rd 2013

After the Punjabis living in districts bordering Haryana buying petrol from the neighbouring state at cheaper prices has become common, the huge value added tax (VAT) being levied on marriage palaces has forced people to shift even marriage venues to Haryana.

According to a recent decision of the Punjab government, the VAT on bigger marriage palaces will be from Rs. 60,000 to Rs. 2 lakh, whereas Haryana charges its marriage palaces only Rs. 10,000. The fee for a permit for serving liquor is Rs. 1,000 in Chandigarh and Rs. 1,500 in Haryana.

"I have cancelled my booking at Patiala following the huge tax and shifted the venue to Ambala for the marriage of my daugher, as both places are equidistant from my place. Why should I pay Rs. 84,000 as tax besides a rental of Rs. 1 lakh and Rs. 30,000 as decoration charges, when in Haryana I can get a marriage palace, including taxes, for only Rs. 80,000," said Rachpal Singh, a resident of Rajpura. He said that besides liquor was also cheaper in Chandigarh and Haryana.

Punjab Marriage Palace Owners Association office-bearer Satish Sethi said, "Some consumers have already cancelled bookings, while many are contemplating making bookings in Chandigarh and Haryana. Why would consumers pay a minimum of Rs. 60,000 as VAT when they can get a venue without any tax at a distance of 50 km? The new inquiries have almost come to a standstill as people have started moving to Chandigarh and Ambala for smaller functions. Like petrol pumps, marriage palaces in the districts bordering Haryana and Rajasthan will be the worst sufferers."

The other reason is the illegal raids by the liquor mafia, which barge into marriage functions and check the liquor bill to ascertain whether the liquor was purchased from their vend or not. "It's highhandedness, mafia is ruling here. Many a time, I have seen the mafia spoiling marriage functions," said caterer RK Sharma. He said the union had decided to pass on the taxes to the consumer.

The petrol pumps of the districts bordering Haryana are already affected as petrol is cheaper in Haryana by almost Rs. 7. Also, farmers preferred selling their wheat and paddy in Haryana, as there was a lower VAT on purchase, and thus commission agents there paid farmers more.

Taxes in Punjab
Minimum VAT
Small marriage palaces: Rs. 40,000
Big marriage palaces: Rs. 60,000

Luxury tax
Small marriage palaces: Rs. 8,000
Big marriage palaces: Rs. 16,000
or 15% VAT and 12.4% luxury tax on total bill of marriage palace

Fee for permit to serve liquor
Small marriage palace: Rs. 5,000
Big marriage palace: Rs. 10,000
Haryana: Rs. 1,500

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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