TREATMENT UNDER PUNJAB VAT ACT
Jatinder Chugh
(Querist) 13 June 2010
This query is : Resolved
I AM A REGISTERED DEALER IN PUNJAB AND PURCHASE GOODS FROM TAXABLE PERSON WHICH IN TURN PURCAHSED GOODS FROM EXEMPTED ELECTRONIC UNIT IN PUNJAB WHICH IS LISTED IN ANNEXURE A @ 12.5%, NOW MY QUERIES ARE AS UNDER:
1) WHETHER I WOULD BE ELIGIBLE FOR NOTIONAL ITC OR I WOULD HAVE TO DEDUCT FROM MY GTO VALUE OF GOODS PURCHASED FROM EXEPMPTED UNIT.
2) WHETHER EXEMPTED UNIT AND SUBSEQUENT TAXABLE PERSON WOULD ISSUE VAT INVOICE OR RETAIL INVOICE AGST WHICH I CAN GET BENEFIT OF TAX AS MNETIONED IN QUERY 1.
3) WHETHER TAXABLE PERSONS AT SECOND STAGE AND AT SUBSEQUENT STAGES CAN GET BENEFIT OF TAX BY DEDUCTION OF PURCHASE FROM GTO OR IN FORM OF NOTIONAL ITC OR NOT.
4)WHETHER I CAN GET BENEFIT @ 4% ONLY OR AT THE RATE OF 12.5%
AMIT BAJAJ ADVOCATE
(Expert) 13 June 2010
Electronic goods if manufactured by exempted units are not eligible for notional input credit by the subsequent dealers.
You will be deducting the purchase value of the goods sold from the exempted sale of electronic goods.
Exempted unit of electronic goods and subsequent purchasing dealers will issue retail invoice.
Subsequent dealers at all stages will claim deduction of purchase value of exempted electronic goods. No tax benefit of ITC or notional ITC of 4% or 12.5% is available in such case, only purchase value to be deducted in such case.
