VAT laws to be ready by October

CHANDIGARH: Punjab''s excise and taxation department has brought out a 61-page preliminary draft for the proposed value added tax.
State excise and taxation minister Sardul Singh today announced the formation of an implementation committee for for smooth transition to VAT. This is proposed to be done in consultation with the PHDCCI.
According to the state’s excise and taxation commissioner Suresh Kumar, the state will finalise VAT law by end of October and get it legislated in the winter session of the Assembly.
He said Punjab will have a revenue neutral rate between 12.5% and 12.75%. The state would favour abolition of central sales tax. Government feels no tax should be levied on importers and transit sales.
As per the preliminary draft, VAT will be charged in accordance with the provisions of the Act on every sale of taxable goods within the state made by a taxable person whose gross turnover in a year exceeds the taxable quantum.
Turnover tax shall be charged on gross turnover of persons not registered as taxable and whose gross turnover in a year exceeds the taxable quantum.
Every person except those dealing exclusively in goods declared tax free under the proposed Act, whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay VAT on all sales of taxable goods.