Punjab VAT Bill to keep wheat bonus out of VAT perview

Chandigarh, June 29 (UNI) The state assembly today passed the Punjab Value Added Tax (Amendment) Bill which seeks to exempt the bonus granted by the central government on wheat and paddy from the perview of VAT.

The Bill which will amend the Punjab Value Added Tax Act, 2005, would result in a substantial loss to the tune of Rs 23.53 crore per annum to the state exchequer, Chief Minister Parkash Singh Badal said while moving the Bill in the Vidhan Sabha.

According to the Bill, the amount of bonus granted as an incentive by the government in respect of wheat and paddy purchased for the central pool by the procurement agencies, shall not form part of the purchase price of these commodities. Neither shall the bonus form part of the sale price of these commodities, as per the Bill.

The Bill seeks to grant of exemption from the levies/taxes on the amount of bonus announced by the government for the procurement of wheat and paddy during the year 2006-07, the Chief Minister told the assembly.

The Bill aims further to exempt incentive bonus on wheat and paddy purchased for the central pool by the procurement agencies from the levies and taxes, he added.

UNI