TaxTMI 
TaxTMI 
TaxTMI 
Ordinance by Punjab Vat under sec. 8B for levy of additional tax - Applicability
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....rdinance by Punjab Vat under sec. 8B for levy of additional tax - Applicability<br> Query (Issue) Started By: - madhavvan n Dated:- 16-2-2010 Last Reply Date:- 4-3-2010 VAT + CST<br>Got 1 Reply<br>VAT / Sales Tax<br>Interpretation of sec 8B introduced under ordinance by Punjab Vat wef 4th February 2010 There shall be levied and collected on the taxable turnover of a person, other than the regist....
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....ered person, an additional tax, which shall be calculated at the rate of 10% of the tax payable by him under this act. answer For this we need to ascertain whether the person is liable for registration as per provisions of sec 21 . (1) No person other than a casual trader, who is liable to pay tax under this Act, shall carry on business, unless he is registered under this Act. Now we will look a....
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....t who is liable to pay tax as per sec 6 the incidence and levy of tax ( the relevant section is attached) from which it can be concluded that the registration is linked to taxable quantum wherein according to me everybody would get covered unless he is a casual trader Hence my conclusion is that this ordinance under sec8B for levy of additional tax is applicable to only casual traders and they wi....
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....ll have to pay the tax as per the following: 8. (1) Subject to the provisions of this Act, there shall be levied on the taxable turnover of a person other than a registered person, VAT at such rate, as specified in Schedules, but not exceeding thirty paise in a rupee. From the above it can be seen that the casual trader is also required to pay the tax as per the VAT rate specified in schedule and ....
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....in addition he will be liable for payment of this additional tax @ 10% of the tax payable ( first tax liability will be determined after applying the rate to the goods sold and then vat liability is determined on which the additional tax of 10% will be levied and collected). Further the casual trader not being a registered person cannot issue a VAT Invoice as per PBVAT readers can comment on abov....
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....e with their views Reply By Rama Krishana: The Reply: You may interpret the provision in the manner that a person who was liable to get himself registered but carries the business without obtaining registration what would be the liability of such person after detection by the HVAT department?<br> Discussion Forum - Knowledge Sharing ....