Punjab assembly passed tax amendement bills

Chandigarh, Dec 18 (UNI) The Punjab assembly passed four amendment bills, including the Punjab Tax on Entry of Goods into Local Areas (Amendment) Bill 2007.

The Bills were moved in the House by Chief Minister Parkash Singh Badal and were then passed by voice vote.

The Punjab Tax on Entry of Good into Local Areas (Amendment) Bill 2007 seeks to curb tax evasion on goods entering the state, particularly yarn, dyes and chemicals and iron and steel which are imported from outside the state of Punjab. Large number of dealers of these goods are showing meager sales by depicting goods as lying on stock and are running away without payment of the due VAT.

However VAT dealers would be entitled to get set off of the amount of tax paid as entry tax from their VAT liability under the Punjab VAT Act 2005. The levy of entry tax on yarn, chemicals and dyes and iron and steel goods is likely to yield an additional revenue of Rs 50 crore.

The second bill, Punjab Value Added Tax (second amendment) Bill 2007 aims to get tax on full sale price of petrol and diesel, as the oil companies have been paying tax after reducing the sale price of an amount equal to the increase of price of petrol and diesel by the central government in June last year.

The third bill, Punjab Value Added Tax (third amendment) Bill 2007 is aimed at ensuring timely recovery of tax due from work contractors at the time of making payments to contractors for the work done.

The fourth bill the House passed was the Punjab Value Added Tax (fourth amendment) Bill 2007 also seeks to check tax evasion by yarn, dyes and chemicals and iron and steel goods dealers in the state so as to increase the revenue.

UNI