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: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT RATES :: empanelment :: VAT Audit :: cpt :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4%
« 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 on iron, steel items slashed in Punjab
December, 25th 2013

In a relief to secondary steel makers, Punjab government today announced to slash VAT rate from 4.95 per cent to 2.5 per cent on iron and steel items.

Punjab Deputy Chief Minister Sukhbir Singh Badal gave nod in this regard after holding a meeting with the delegation of furnace, iron and steel rolling mills here today.

The new proposed VAT regime on iron and steel industry is aimed to enable it to compete with neighbouring states and increase in revenue, an official release said.

As per decisions taken, the rate of VAT on scrap (melting and rolling), ingots/billets/blooms or other semi finished goods, finished goods, inter-state sales would be reduced to 2.5 per cent from 4.95 per cent with surcharge of 10 per cent.

To prevent a practice of bogus input tax credit claim, it was decided to restrict the claim to maximum two stages.

Introducing restructured VAT regime for this sector, the state government has also decided to calculate VAT on the basis of energy consumption by unit.

"After the implementation of new system, there should be a minimum commitment of production of 1 tonne of finished items with 250 units of consumption of electricity, whereas for furnace units, a minimum commitment of 1 tonne of ingot production with 750 units of electricity has been made," official said.

"This new system (of calculating VAT) will eliminate tax evasion and also lead to increase in production by encouraging flow of scrap and raw material into the state," release said.

The total tax collection from iron and steel industry was Rs 1,091 crore in the financial year 2012-13, out of which Rs 403 crore was refunded to tax payers, resulting in the net tax collection of Rs 688 crore.

Badal said initially new VAT regime will bring a revenue loss of Rs 185 crore to the state but in the coming years it will generate more revenue in a big way as industry would increase the production.

Badal has also announced that the Punjab Cabinet would approve the new VAT regime for iron and steel industry in its meeting to be held in first week of January.

The restructured VAT regime would be notified and implemented from February 1, 2014.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

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