THE PUNJAB VALUE ADDED TAX RULES, 2005

 

GOVERNMENT OF PUNJAB

DEPARTMENT OF EXCISE AND TAXATION

NOTIFICATION

 

The ____ day of March, 2005.

 

No.G.S.R.____/P.A.___/2005 S.____/_______________

 

 

CHAPTER I

 

PRELIMINARY

 

Short title and commencement

1.                   

(1)   These rules may be called the Punjab Value Added Tax Rules, 2005.

(2)   These shall come into force on such date as the State Government may by notification in the Official Gazette appoint.

 

 

Definitions

2.       

In these rules unless the context otherwise requires, -

 

 

 

(1)         appellate authority means an officer of the Department not below the rank of Deputy Excise and Taxation Commissioner as may be notified by the Government;

 

 

 

(2)         appropriate Government treasury means a treasury or sub-treasury of Government or a branch of the State Bank of India, or a branch of the State Bank of Patiala or any branch of a scheduled commercial bank authorised to transact Government business by the Reserve Bank of India, situated in the district in which the person concerned has his place of business or the principal place of business in the state, if the business is carried on at more than one place;

 

 

 

(3)         Form means any form prescribed by and appended to these Rules;

 

 

 

(4)         month means a calendar month;

(5)         owner of goods includes the consignor or consignee or his authorized representative or the driver or the person in charge of the goods vehicle, as the case may be, or the person in whose possession the goods are in a given situation irrespective of the fact whether he has title to the goods or not;

 

 

 

(6) revisional authority means any officer of the Department not below the rank of an Assistant Excise and Taxation Commissioner notified as such by the Government;

 

 

 

(7)         Section means a section of the Act;

 

 

 

(8) tax fraction means the fraction calculated in accordance with the formula:

 

 

 

S x R

R + 100

 

 

 

Where S is sale price of the taxable goods and

R is the rate of VAT or TOT as the case may be;

 

 

 

(9) the Act means the Punjab Value Added Tax Act, 2005;

 

 

 

(10)     warehouse means any enclosure, building or vessel in which a person keeps stock of goods meant for business.

 

 

 

 

CHAPTER II

 

REGISTRATION

 

 

Application for registration

3.

(1) An application for registration under Section 21 or 22 of the Act shall be made to the designated officer. It shall be signed by the proprietor of the business or in the case of a firm, by a partner of the firm, or in the case of a Hindu undivided family, by the manager or karta of the family or in the case of a company incorporated under the Indian Companies Act, 1956, by the managing director or any other person authorized by the Board of directors of the company, or in the case of a Government Department, by the head of the Department or any other Officer/Officers duly authorized in writing by him or in the case of any other association of individuals, by the principal officer managing the business.

 

 

 

(2)         An application for registration shall be in Form VAT-1 and shall be accompanied by a deposit receipt, in Form VAT-2, of a fee of Rupees five hundred in appropriate Government treasury.

 

 

 

(3)           An application for obtaining VAT registration or TOT registration by a person who was registered under the repealed Act immediately before the appointed day, shall also be in Form VAT-1. The application shall be made to the designated officer within a period of thirty days from the appointed day:

 

 

 

Provided that no fee as prescribed under subrule (2) shall be required to be deposited by such person, if the application is filed within the stipulated period.

 

 

 

(4) The person making application under sub-rule (3) shall append with the application the original registration certificate granted under the repealed Act.

 

 

 

 

 

 

 

Security

4.

(1) The security or additional security required to be given for registration shall be in any of the following forms:

 

 

 

 

(a)         Bank guarantee from a local scheduled commercial bank for the amount of security/additional security;

(b)         Personal Bond with two solvent sureties acceptable to the designated officer for the amount of security/additional security in Form VAT-3.

 

 

 

(2)         Where the security/additional security furnished by a person is in the form of Bank Guarantee, the person furnishing such guarantee shall get the same re-validated at least thirty days before the date of its expiry.

(3)         Where the security/additional security furnished by a person is in the form of a surety bond and the surety becomes insolvent or is otherwise incapacitated or dies or withdraws, the person shall, within fifteen days of the occurrence of any of these events, inform the designated officer granting the registration, and shall within thirty days of such occurrence, furnish a fresh security / surety for the like amount.

(4)       The security already furnished by a person registered under the repealed Act shall be deemed to be a security furnished under this Act, subject, however, to the confirmation from the sureties to this effect, to be furnished to the designated officer, within a period of ninety days from the appointed day. In the event of non-availability of such confirmation, the security shall be provided afresh within the period specified, herein before.

(5)       In the event of default in payment of any amount due under the Act, the security/additional security furnished by the person shall be liable to be adjusted towards such amount due, after intimation to him and the shortfall in amount of such security shall be made up by the person within a period of thirty days from the date of said intimation.

 

 

Certificate of registration

5.

(1) When the designated officer, after making such enquiry as it thinks necessary, is satisfied that the particulars contained in the application are correct and complete and the prescribed fee has been paid, it shall register the person and issue him a certificate of registration in Form VAT-4 for principal place of business and a copy each of the certificate for every additional place of business within the State, free of cost. The registration certificate and its copies for additional places of business shall be issued within thirty days of submission of completed application in all respects, prominently mentioning the name of such additional place of business. The certificate of registration shall be valid from the date of receipt of application for registration or from the date of commencement of the liability to pay tax, whichever is later.

 

(2) The designated officer shall issue a fresh certificate, in replacement of the Registration Certificate issued under the repealed Act, in terms of provisions of sub-section (5) of Section 21 of the Act.

 

 

Issue of duplicate copy of certificate of registration

6.

Where the certificate of registration granted to a person is lost, destroyed, defaced or mutilated, he may on application made in this behalf to the designated officer and on payment of a fee of rupees one hundred obtain a duplicate copy thereof.

 

 

Keeping certificate of registration at all places of business

7.

The certificate of registration granted under rule 5 shall be kept and displayed at the principal place of business and a copy each of the certificates shall be kept at every additional place of business within the State.

 

 

Display of signboard

 

 

8.

Every person, registered under the Act shall display a signboard at a conspicuous place at his place of business showing his trade name and address of the place of business:

Provided that if the person uses more than one trade names, then all such names should be displayed on the signboard.

 

 

Declaration in respect of the manager or other officers of a person

9.

Every person, who is required to furnish a declaration in respect of the name of the manager under sub section (8) of section 21 of the act, shall furnish the declaration to the designated officer, within thirty days from the date of registration and in the event of change of manager, shall send a revised declaration, within thirty days from the date of such change.

 

 

 

 

 

Maintenance of registers of taxable/ registered persons

10.

Complete particulars of every registration under the Act shall be entered by the designated officer in the registers to be maintained separately for taxable persons and registered persons.

 

 

Amendment of registration

11.

An application for amendment of registration granted under the Act shall be made in Form VAT-5 within thirty days from the occurrence of the event necessitating such amendment. The application shall specify clearly the amendment required and the reasons therefor. The designated officer may, if satisfied with the reasons given, make such amendment(s), and inform the applicant in Form VAT- 6:

 

 

 

Provided that where the amendment of registration relates to an additional place of any business located outside the jurisdiction of the designated officer, information about the amendment shall also be forwarded to the designated officer within whose jurisdiction such additional place of business is situated.

 

Amendment of registration in case of transfer of business

12.

The application for the amendment of the registration in case of transfer of business shall be made in Form VAT 5 by the transferee to the designated officer within thirty days of his acquiring ownership of the business and the provisions of Rules 9 and 11 shall mutatis mutandis apply.

 

 

 

Cancellation of registration

13.

(1) An application for cancellation of registration granted under the Act shall be made within a period of thirty days of the occurrence of the event necessitating cancellation.

(2) The person who applies for cancellation of registration shall submit along with the application for cancellation the following documents, namely:

 

 

 

(a)            certificate of registration and copies thereof, if any;

(b)            unused statutory forms, if any;

(c)            return, if any, due for submission on the date of application;

(d)            a statement showing the value of goods imported or manufactured by him during the immediately preceding two years; and

(e)            a final return in Form VAT-15 or VAT-17 as the case may alongwith a statement of closing stock and capital goods.

 

 

 

 

(3) (a) Every person whose registration has been cancelled otherwise than on application, shall surrender his certificate of registration and other documents specified in sub rule (2) and shall furnish such other information/document as may be required by the designated officer, within fifteen days of the date of service of the notice given in this behalf.

 

 

 

(b)         In case the person fails to surrender unused statutory forms within the stipulated period such forms shall be declared obsolete through a public notice in a local and a national newspaper or gazette notification.

(c)         The designated officer shall make the necessary amendment entry in respect of persons whose registration has been cancelled, in the registers maintained for registration.

(4) The order of cancellation of registration shall be passed within thirty days of the receipt of application.

 

 

 

 

(5) A copy of the order of cancellation shall be issued and served upon the person within fifteen days from the date of order of cancellation of registration.

(6) The cancellation of registration shall be effective from the date of order of cancellation, issued in this behalf by the designated officer.7) Public notice of cancellation of registration shall include a notice in the press through leading newspapers or through publication in the official gazette.

 

 

Provision in case of a person having more than one place of business

14.

(1) Person having more than one place of business in the State shall designate one of such places as the principal place of business for the purpose of the Act or the Rules.

 

 

 

(2) All applications, returns or statements prescribed under the Act, or these rules shall be submitted to the designated officer, in respect of all the places of business, by the principal place of business.

 

 

 

(3) The turnover of the business shall be the aggregate of the turnover of all places of business in the State.

 

 

 

(4) The person in charge of the principal place of business, designated under sub-rule (1), shall -

 

 

 

(a)         make all applications, including application for the grant of registration; and

(b)         submit all returns including the turnover of additional places of business.

 

 

 

(5) All notices and orders under the Act or the Rules shall be served at the principal place of business. A notice or order, served at the principal place of business, shall be deemed to have been served on all additional places of business.

 

 

 

 

 

 

 

 

CHAPTER III

 

DETERMINATION OF TAXABLE TURNOVER AND

CALCULATION OF NET TAX PAYABLE

 

 

Determination of taxable turnover by a person

15.

(1) To determine the taxable turnover of sales, a person shall deduct from his gross turnover of sales, the following:

 

 

 

(a)         turnover of sales of goods declared tax free under section 16 of the Act;

(b)         turnover of sales of goods made outside the State or in the course of inter-state trade or commerce or in the course of import of goods into or export of goods out of the territory of India under section 84 of the Act;

(c)         turnover of goods sent on consignment basis / branch transfers;

(d)         amount charged separately as interest in the case of a hire-purchase transaction or any system of payment by installments;

(e)         amount allowed as cash discount and trade discount provided such discount is in accordance with regular trade practice;

(f)           sale price of taxable goods where such sale was cancelled:

Provided that the deduction under this clause shall be claimed only if the person is in possession of all copies of VAT/Retail invoice.

(g)         sale price, in respect of any goods returned within a period of six months:

Provided that a taxable person shall claim the deduction under this clause only on the basis of debit note issued by the purchaser for the goods returned.

(h)         a sum to be calculated by applying a tax fraction in case gross turnover includes retail sales.

(2) The deduction referred to in clauses (e), (f) and (g) of sub-rule (1), shall be claimed in the tax period in which the event occurs:

Provided that if the turnover of the period is less than the claim, then the balance of such deduction shall be claimed in the immediate subsequent period.

(3) The provisions of clauses (a) to (g) of sub-rule (1) shall also apply for determination of taxable turnover of purchases for levy of purchase tax under section 19 and 20 of the Act to the extent applicable.

(4) The sale price of the goods sold by the commission agent on behalf of his principal, registered under the act, shall be added in the taxable turnover of the agent.

 

 

 

 

(5) The value of the goods involved in the execution of a works contract shall be determined by taking into account the value of the entire works contract and deducting there from the components of payment made towards labour and services, including:

(a) Labour charges for execution of the works;

(b) Amount paid to a sub-contractor for labour and services;

(c) Charges for planning, designing and architects fees;

(d) Charges for obtaining for hire, machinery and tools used for the execution of the works contract;

(e) Cost of consumables, such as, water, electricity, fuel etcetra used in the execution of the works contract, the property in which is not transferred in the course of execution of a works contract;

(f) Cost of establishment of the contractor to the extent it is relatable to supply of labour and services;

(g) Other similar expenses relatable to supply of labour and services;

(h) Profit earned by the contractor to the extent it is relatable to supply of labour and services.

(5) The amounts deductible under these heads shall be determined in the light of the facts of a particular case on the basis of the material produced by the contractor.

 

 

 

 

 

Classification of taxable turnover according to rate of tax

16.

A person shall classify his taxable turnover of sales / purchases determined in accordance with the provisions of the Act and the Rules on the basis of rate of tax specified in the Schedule(s).

 

 

Calculation of

tax on taxable turnover

17.

(1) A taxable person and a casual trader shall calculate tax payable on taxable turnover of sales by applying the rate of tax specified in the Schedule(s).

 

 

 

(2)          A registered person shall calculate tax payable on turnover of sales by applying the rate of tax specified in the notification issued under section 9.

 

 

Conditions for input tax credit

18.

The input tax credit under section 13 of the Act will be admissible available to a taxable person provided such person has:

(a) in his possession the original VAT invoice, issued to him by a taxable person, from whom purchase of such goods has been effected, wherein tax has been separately charged.

(b) maintained proper accounts recording therein, in chronological order, all purchases of goods eligible for input tax credit and all adjustments thereto;

 

 

Input tax credit on capital goods

 

19.

(1) Input tax credit shall be admissible in respect of capital goods, as per provisions of the Act:

Provided that where capital goods are used partially for manufacture of taxable goods and partially for manufacture of tax free goods or for job work, input tax credit will be available on prorata basis for manufacture of taxable goods or processing of taxable goods for sale only and the same , for a particular period, will be determined by taking the ratio between the value of taxable and tax free goods manufactured or amount received or receivable for job work done during that period.

(2) In the event of input tax credit having been availed already on such capital goods , the input tax credit would be reversed to the extent it has been used in respect of manufacture of tax free goods or for processing of such goods. If, as a result of such reversal, there is a negative input tax credit balance for a particular period, the person shall pay such tax forthwith, as if the same is payable in the said period.

 

 

 

Eligibility of Input tax credit on job work

 

 

20.

Input tax credit shall be allowed if any taxable goods as such or after being partially processed or sent by a manufacturer registered under the act to a job worker for further processing, testing,. repair, reconditioning or any other purpose , and it is established from the challan , documents or records produced by the taxable person concerned that the goods in question have been received back by him within ninety days from the date of dispatch to the job worker and eventually sold.

 

 

 

 

 

Inadmissibility of input tax credit in certain cases

21.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)             No input tax credit shall be available to a person for tax paid on purchase of goods if such goods are lost or destroyed or damaged beyond repair because of any theft, fire, or natural calamity and cannot eventually be sold.

(2)            Input tax credit availed on the goods, which are lost, destroyed or damaged beyond repair, shall be reversed during the period such event occurs.

(3)             No input tax credit shall be admissible to a person in respect of such purchases for which he accepts from the selling person ,an invoice

(a) which has not been duly obtained from a taxable person against the bonafide transaction;

(b) which does not contain all the required information as prescribed in rule 54; and

(c) which has been issued by a person, whose certificate of registration has been cancelled under the provisions of the Act.

(4)             Where some goods as input or output are lying in the stock of a taxable person and where such goods become tax-free from a particular date, then from that date, no input tax credit shall be available to the taxable person on sale of the goods lying in the stock or on using the goods as input for making such tax-free goods.

(5)             No input tax credit will be available on goods purchased by a person during the period he opted for composition of tax (TOT) under section 6 of the Act.

(6)             Where input tax credit is already availed by a taxable person against purchase of goods, a part of which is, however, either used in manufacturing goods specified in Schedule A or disposed of otherwise than by way of sale, the input tax credit so availed for such part of goods will be deducted from input tax credit for the period in which such event takes place. If, as a result of such deduction, there is a negative input tax credit balance for a particular period, the person shall pay such tax forthwith, as if the same is payable in the said period.

 

 

 

Calculation of input tax credit

22.

Subject to provisions of Rules 23 and 24, a taxable person shall be entitled for input tax credit of whole of the input tax paid on purchases of goods during the tax / return period after reducing therefrom reverse tax credit:

Provided that in respect of goods specified in sub-sections (2) and (3) of section 13 of the Act, input tax credit shall be availed only to the extent by which the amount of tax paid in the State exceeds four percent:

Provided further that the purchase tax paid under section 19 of the Act shall be considered as input tax credit for the purpose of subsequent sale in the hands of same person.

 

 

Input tax credit where identification of goods is possible

23.

Where a taxable person has used the goods purchased partially for taxable sales and maintained commodity-wise account of his purchases and its use in production and/or sales, and correlates such purchases with sale of taxable goods, the input tax credit for the tax/return period shall be an amount of VAT paid or payable on such purchases as reduced by the reverse tax credit:

Provided that in respect of goods specified in sub-sections (2) and (3) of section 13 of the Act, input tax credit shall be availed only to the extent by which the amount of tax paid in the State exceeds four percent, and the amount calculated above shall be reduced by a sum calculated in accordance with the following formula:

P x 4

100

Where P is purchase price excluding the tax amount representing the sum in respect of the goods that are dispatched in a manner referred to above.

 

 

Input tax credit where identification of goods is not possible

24.

Where a taxable person has used the goods purchased partially for taxable sales and is unable to maintain accounts as provided in rule 23 and the sale by him includes sale of tax free goods and taxable goods or branch/consignment transfers, then it shall be presumed that goods so purchased during the tax period have been used in proportion of turnover of sales of tax free goods, taxable goods and branch/consignment transfers of the tax/return period and accordingly input tax credit shall be claimed in that proportion. Input tax credit shall be apportioned for tax-free and taxable sales as follows:

IT x T

GT+BT

Where IT is the total amount of input tax for the period less reverse tax:

T is the total turnover of sales of taxable goods made in the tax/return period including zero rated sales, inter-state sales and value of branch/consignment transfers but excluding the tax amount.

GT is the gross turnover of sales (including inter-state sales) during the tax/return period but excluding the tax amount.

BT is the total value of branch/consignment transfers of taxable goods in the course of inter-state trade or commerce made in the tax/return period:

Provided that in respect of goods specified in sub-sections (2) and (3) of section 13 of the Act, input tax shall be considered only to the extent by which the amount of tax paid in the State exceeds four percent and where a person also make branch transfers, the above amount of input tax credit shall be further reduced by a sum calculated in accordance with the following formula:

IP x BT x 4

(GT+BT) x 100

 

 

Where IP is the purchase price of the goods excluding the tax amount in respect of which ITC is considered above.

GT is the gross turnover of sales (including inter-state sales) during the tax/return period but excluding the tax amount.

BT is the total value of branch/consignment transfers of taxable goods in the course of inter-state trade or commerce made in the tax/return period.

 

 

Input tax credit on stock held on the appointed day

25.

(1) Subject to provisions of sub-section (3) of section 14 of the Act input tax credit on goods, other than capital goods, held in stock by a taxable person, registered under the repealed Act on the appointed day, shall be available subject to the following conditions:

(a) The person claiming the input tax credit is registered under the Act as a taxable person.

(b) Such person has submitted statement of such goods within thirty days of the appointed day, in the form as may be notified making therein a claim of input tax credit in accordance with sub-rule (3) of this rule.

(c) The taxable person shall retain documents/evidence relating to the claim of input tax credit for a period of six years from the appointed day and shall provide such document(s)/evidence to the Commissioner or the designated officer for audit as and when required.

(2) Only the goods that have suffered tax under sub-section (1)-A of section 5 of the repealed Act, prior to the appointed day and are taxable under the Act, shall be eligible for input tax credit.

 

 

 

(3) Input Tax credit available shall be calculated as follows:

 

 

 

(a)         In respect of goods which were subjected to tax at the first stage under the repealed Act, and the tax has been charged separately on the bill, input tax credit shall be the amount of such tax or the tax which should have been payable at the rate applicable on the day preceding the appointed day or the rate of tax under the Act, whichever is the lowest;

(b)         in respect of goods which were subjected to tax at the first stage under the repealed Act, and the tax has not been charged separately, the input tax shall be calculated by the formula:

P x R

100 + R

 

Where P is the purchase price of eligible goods held in stock

R is the rate of tax on goods prevailing on the day preceding the appointed day or the rate of tax applicable on the day of its purchases under the repealed Act or the rate of tax under the Act, whichever is the lowest.

 

 

 

(4) The designated officer shall verify such claim and within sixty days of its filing determine the amount of input tax credit available to the taxable person. Such credit shall be then availed proportionately over a period of one year beginning three months from the appointed day.

 

 

 

(5) Where the taxable person in a tax/return period has made any branch/consignment transfer of goods, the input tax credit shall be reduced by the formula:

ST x BT x 4

N x (GT+BT) x 100

 

Where ST is the value of stock of goods in respect of which the ITC is calculated in sub-rule (3) of this rule.

BT is the total value of branch /consignment transfers of taxable goods in the course of inter-state trade or commerce made in the tax/return period.

GT is the gross turnover of sales (including inter-state sales) during the tax/return period but excluding the tax amount.

N is the number of tax/return periods falling within a period of twelve months commencing after three months from the appointed day.

 

 

 

(6) The provisions (1) to (5) above shall apply mutatis mutandis to goods mentioned in Schedule D of the repealed Act, to the extent relevant.

 

Input tax credit on duplicate invoice

26.

(1) In case the original VAT invoice has been lost, destroyed or mutilated, a taxable person shall apply to the designated officer in Form VAT-7 and attach along with the same, a duplicate copy of VAT invoice issued by the seller and an indemnity bond in Form VAT-8 for the amount equal to the amount of input tax claimed under such invoice.

(2) On receipt of such application, the designated officer shall cross-check the transaction and after satisfying about the genuineness of the transaction shall allow the claim by an order to be passed within 60 days of the receipt of such application.

(3) The taxable person shall avail the input tax credit only after receipt of the order specified in sub-rule (2).

 

 

Net tax payable

27.

(1) After determination of output tax liability and input tax credit, the taxable person shall determine his net tax liability, if any, for the tax/return period in accordance with the provisions of section 15 of the Act.

(2) A registered person shall determine his tax liability for the tax/return period in accordance with the provisions of section 12 of the Act.

 

 

 

Where the output tax payable by a person exceeds the input tax for that period, the difference shall be the tax payable by the taxable person along with the return for that return period.

 

 

 
 
 
 
 
CHAPTER IV

 

PERSONS ENGAGED IN CASUAL TRADE

 

 

Application for Grant of Permission

28.

(1) Before the commencement of a casual business event, a casual trader or his duly authorized agent shall apply to the designated officer for permission, in Form VAT-9, along with a treasury receipt in Form VAT 2 for a fee of Rupees five hundred.

 

 

 

 

(2)         The casual trader shall along with the application in Form VAT9 furnish to the designated officer sale bill book(s) and account books for authentication and shall append the list of commodities to be sold.

 

 

 

(3)         The casual trader may withdraw his application any time before the date of commencement of casual business event.

 

 

Security

29.

(1) The designated officer on receiving the application from casual trader shall determine the amount of security which shall not exceed Rupees one lac.

 

 

 

(2)         Every casual trader shall furnish the security for the amount determined under sub-rule (1) which shall be in the form of bank guarantee from a local scheduled commercial bank or cash against a receipt in Form VAT-10 issued by the designated officer.

 

 

 

(3) On receipt of the application complete in all respects alongwith security, the designated officer shall enter the particulars of the casual trader in a register. The designated officer on being satisfied that the particulars contained in the application are correct and complete shall grant permission to the casual trader in Form VAT-11, which shall be in triplicate. The first two copies shall be given to the casual trader:

 

 

 

Provided that if the said designated officer is not satisfied that the particulars contained in the application are correct and complete, he shall after affording an opportunity of being heard reject the application for reasons to be recorded in writing.

 

 

 

(4) The designated officer at any stage during the currency of the casual business event may, keeping in view the quantum of business undertaken or likely to be undertaken, demand additional security, if he is satisfied that the security already obtained is inadequate:

Provided that the total amount of security including the additional security shall not exceed rupees one lac.

 

 

 

 

Import of goods by the casual trader

30.

(1) A casual trader who brings goods from outside the State shall report to the first Information Collection Centre or check post on entry into the State and furnish second copy of the permission certificate issued by the designated officer and shall declare his goods in Form VAT-12.

 

 

 

(2) The casual trader referred to in sub-rule (1) shall furnish details of such goods to the designated officer before the commencement of the casual business event. The details of the goods imported during the currency of the said business event shall also be furnished to the designated officer forthwith.

 

 

Extension of period of casual business event or opening of new outlet

31.

If the casual trader intends to extend the period of conducting the casual business event or intends to open a new outlet, he shall intimate the designated officer in writing in this respect at least three working days in advance and designated officer on receipt of such information and satisfying himself as to the genuineness of the request may extend the period of permission for conducting casual business event and incorporate the fact of extending the period, and/or opening the new outlet in Form VAT-11:

 

 

 

Provided that while extending the period of permission or allowing opening of a new outlet the designated officer may review the security already furnished.

 

 

Mode of payment of tax

32.

Subject to provisions of sub-rule (4) of Rule 33, a casual trader shall deposit the amount of tax due in the appropriate Government treasury in challan in Form VAT-2 on the conclusion of the business:

 

 

 

Provided that If the period of casual business event exceeds seven days, the amount of tax shall be deposited on weekly basis on the first working day after the close of the week and the final installment shall be paid immediately on the conclusion of the casual business event, whichever is earlier.

 

 

 

Procedure after closure of casual business event and finalizing tax liability

33.

(1) The casual trader shall furnish to the designated officer a statement showing the details of sales and purchases and tax liability in Form VAT-13 immediately after the conclusion of the casual business event. He shall also append the details of unsold goods and shall produce account books before designated officer for determining the final tax liability.

 

 

 

(2)         The designated officer may examine the account books of the casual trader immediately on the date of receipt of tax liability statement in Form VAT13 or on the next working day and shall determine the final tax liability of the casual trader.

 

 

 

 

 

(3)         After determining the final tax liability, the designated officer shall require the casual trader to deposit immediately the amount of tax so determined.

 

 

 

(4)         Where a casual trader fails to discharge his tax liability as determined by the designated officer the same shall be recovered out of the security furnished by the casual trader. Balance unrecovered amount, if any, shall be recoverable under the provisions of the Act and the Rules.

(5)         After satisfying himself that the casual trader has discharged his tax liability, the designated officer shall release the security and issue tax clearance certificate in Form VAT14. This certificate shall be in triplicate. The casual trader shall be given first and second copy. He shall deposit the second copy at the last Information Collection Centre while leaving the State.

 

 

 

Failure to seek permission

34.

If a casual trader fails to apply for permission or fails to make a report he shall be served with a notice before taking final action.

 

 

Detention of goods of casual trader

35.

If he goods being transported by a casual trader are detained as per provisions of the Act, these shall be put to auction, if required, in accordance with the procedure laid down in rule 72.

 

 

 

CHAPTER V

 

RETURNS AND PAYMENT OF TAX

 

 

Returns

36.

(1) Every taxable person shall file quarterly self-assessed return in Form VAT-15 within thirty days from the expiry of each quarter along with proof of payment(s) into the appropriate government treasury and the TDS certificates, if any:

Provided where a person opts to make the payment of tax through crossed cheque or bank draft, he shall enclose the crossed cheque or the bank draft, as the case may be, along with the return, which shall be filed within twenty days from the expiry of the quarter:

Provided further that a person whose annual gross turnover exceeds rupees one crore in the previous year, shall determine his tax liability for every month and shall pay such tax for the first two months of the quarter within ten days from the expiry of the month and submit the treasury receipt to the designated officer, along with the information in Form VAT-16; and Payment for the last month of each quarter shall be made on 20th or 30th day of the close of quarter, as the case may be, along with the quarterly return. The return in Form VAT 15 shall be accompanied with photocopies of challans of previous two months also.

 

 

 

(2) Every registered person shall file quarterly self-assessed return in Form VAT-17 within thirty days from the expiry of each quarter along with proof of payment(s) into the appropriate government treasury and the TDS certificates, if any:

Provided that a person who opts to make the payment of tax through crossed cheque or bank draft, he shall enclose the crossed cheque or the bank draft, as the case may be, along with the return which shall be filed within twenty days from the expiry of the quarter.

 

 

 

 

(3) In the case of a taxable person or a registered person having more than one place of business in the State, returns prescribed by these rules shall be submitted by the principal place of business in the State and shall include the total value of goods sold or purchased or transferred by all additional places of business of such taxable person or registered person, as the case may be.

 

 

 

(4) In the event of cancellation of registration the taxable person or registered person shall file a final return in Form VAT-15 or Form VAT-17, as the case may be, within thirty days of such closure along with a statement of stock as on the date of closure.

 

 

 

(5) A return in Form No. VAT 15 or VAT 17, as the case may be, shall be in duplicate. The original copy shall be retained by the designated officer and the duplicate copy shall be returned to the person after acknowledging the same by signing and affixing the official stamp and the inward number.

 

 

 

Mode of payment and procedure thereafter

37.

(1)         Any amount payable by a person in respect of tax, interest, penalty, registration fee or any other liability shall be paid into the appropriate Government treasury.

(2)         All payments made under the Act or the Rules shall be made in Challan Form VAT - 2, which will be available free of charge at the District Excise and Taxation Offices.

(3)         Challan in Form VAT - 2 shall be filled in quadruplicate. Part A of the Challan shall be retained by the treasury, part B shall be sent by treasury officer to the district Excise and Taxation Office and parts C and D shall be returned to the depositor, duly signed, in proof of payment.

(4)         Where the amount payable by a person is paid into a branch of the State Bank of Patiala or any branch of a scheduled bank authorised to transact the Government business, as approved by the Reserve Bank of India, the manager thereof, shall return to the person, duly signed, in proof of payment, parts C and D of the challan form and forward parts A and B of the challan form, along with a detailed list of deposits, to the Treasury Officer of the district, in which the branch is situated, on the first day of the following month.

(5)         The Treasury Officer of the district shall retain part A of the challan form and forward part B thereof to the District Excise and Taxation Office.

 

 

 

(6) There shall be maintained in the Excise and Taxation Office of each district, a Daily Collection Register in Form VAT-54, wherein particulars of every challan received in proof of payment of tax or penalty or any other amount due under the Act, shall be recorded.

 

 

Deductions of Inter-state sales and Inter-state purchases

38.

A person, who wishes to deduct from his turnover the amount in respect of sales or purchases made outside the state or in the course of inter state trade or commerce or export out of the territory of India, shall append lists in Form VAT - 18 and Form VAT 19 along with return in Form VAT - 15.

 

 

Evidence in support of inter-State dispatches from Punjab

 

39.

A person who has dispatched goods from any place within Punjab and intends to claim deduction under clause (b) or (c) of sub-rule (1) of Rule 15 from his turnover of sales shall, on demand, furnish before the designated officer for audit, at the time of audit under section 28, or before the designated officer for assessment, at the time of assessment under section 29 or section 30, the following particulars:

 

 

 

(a) description of goods:

(b) quantity or weight of goods;

(c) name of the transporter, railway station or airport or the place from which such goods have been despatched;

(d) name of the place of destination;

(e) number and date of goods receipt along with vehicle number, railway receipt, bill of lading, or consignment note, or air note, as the case may be;

(f) name and address of the consignor in Punjab and the consignee outside Punjab ;

(g) name and address of the purchasing person outside Punjab, with number of the certificate of registration, if any, under the Central Sales Tax Act, 1956 (74 of 1956);

(h) invoice number and date;

(i) amount of the invoice.

 

 

 

Annual statement

40.

(1) In addition to the returns prescribed under sub-rule (1) and (2) of rule 31, every taxable person and registered person shall file an annual statement in Form VAT - 20 or Form VAT - 21, as the case may be, giving therein the final liability of tax for the year by 20th November in case of a taxable person and by 20th August in case of a registered person. This statement shall be accompanied by the receipt evidencing payment of tax less paid, if any, together with due interest thereon, and

(2)Every person other than a person who is required to submit VAT audit report as per rule 41, shall, with annual statement , furnish balance sheet and profit and loss account as on 31st March of the relevant year.

 

 

VAT audit report by a Chartered Accountant

41.

Every person, whose gross turnover of sale or purchases in a year exceeds rupees forty lac shall, alongwith the annual statement, submit a copy of a VAT audit report in Form VAT 22.

 

 

List of sales and purchases

42.

Every taxable person shall append to his return a list of sales in Form VAT - 23 and a list of purchases in Form VAT - 24.

 

 

Scrutiny of Returns

43.

(1) The designated officer shall scrutinize every return of a person filed under-section 26 of the Act. If any mistake is detected in the return upon such scrutiny and the person is found to have paid less tax than that payable as per the said return, the designated officer shall serve a notice in Form upon the person concerned directing him to rectify the same and to pay the amount of tax less paid, along with the interest payable under section 32 of the Act and produce the treasury receipt(s) before the designated officer, within the time specified in the said notice:

Provided that if the person is found to have paid tax or interest under section 32 of the Act in excess of the amount payable according to such return, the designated officer shall inform the same to the person by sending a notice within one month of completion of such scrutiny.

(2) If upon receipt of the notice referred to in the sub-rule (1), the person complies with the direction made in such notice and furnishes proof of such compliance including furnishing of a copy of the treasury receipt, the designated officer shall make a record of the same and close the scrutiny. However, if the person does not comply with such directions or expresses his disagreement in writing, adducing reasons for such disagreement with the directions made in such notice, the designated officer, unless he accepts such reasons as correct and justified, shall refer the matter to the designated officer within a fortnight, recommending initiation of audit under section 28 of the Act, in respect of such person.

 

 

Selection of persons for audit.

 

44.

(1) The Commissioner shall select, on the basis of the parameters laid down, a certain number of persons in the manner laid down under sub-rule (2) for audit under section 28, either mechanically or with the use of computers:

Provided that the Commissioner may, upon receipt of information or otherwise, select those persons for audit, who, according to him, are required to be audited.

(2) The audit shall be performed by the designated officers as a team. Such a team may consist of one or more Excise and Taxation officer, Assistant Excise and Taxation Commissioner or Deputy Excise and Commissioner, as the Commissioner may deem fit.

(3) The audit referred to in sub-rule (1), may be made for a period or for aggregate of periods.

 

 

 

Audit of returns, accounts, etc.

45.

(1) For the purposes of audit of returns, annual statement and accounts, the Commissioner or the designated officer or any other officer authorised to do so may require any person or a class of persons to produce evidence for verification of correctness of any return and any other additional information(s) as may be considered necessary.

 

 

 

For the purpose of audit of returns, annual statement and accounts, the notice shall clearly state the period(s), the date, time and place fixed for such audit. The notice shall provide a period of not less than 10 days for production of account books as specified in the notice.

 

 

 

(2)         A person who has been served a notice under sub-rule (2) shall produce on the specified date and time account books as specified in the notice.

 

 

 

(4) During the course of the audit, the designated officer may require the person to afford him the necessary facility to inspect/verify the account books for the period mentioned in the notice. The person shall also provide his explanation to the queries asked by the designated officer.

 

 

Liability of persons in case of works contract

46.

(1) A person entering into a contract with a contractor or a contractor entering into a contract with a sub-contractor for transfer of property in goods in execution of a works contract, shall furnish to the commissioner or the designated officer, particulars of such contract in Form VAT-25 within a period of thirty days of such contract.

 

 

 

(2) A person entering into a contract with a contractor or a contractor entering into contract with a sub-contractor for transfer of property in goods in execution of a works contract and liable for deduction of tax shall within thirty days of his liability to deduct the tax apply to the designated officer in Form VAT- 26 for allotment of tax deduction number. The designated officer shall within seven days from receipt of such application, complete in all respect, shall allot tax deduction number.

 

 

 

(3) The tax deducted under the Act, shall be deposited by the person deducting the tax in a challan in Form VAT-2 in the account of such designated officer, within a period of fifteen days of the close of each month and a monthly statement of such deposits shall be furnished by him to designated officer in Form VAT-27, alongwith the proof of payment, within a period of fifteen days after the date of deposit.

 

 

 

(4) The person deducting the tax shall issue a certificate of tax deduction at source in Form VAT - 28, which shall entitle the contractor to claim credit for such amount in the return for the relevant period.

 

 

 

 
CHAPTER VI

 

ASSESSMENT OF TAX LIABILITY

 

 

 

Notice and manner of assessment

47.

(1) For the purpose of assessment or provisional assessment of a person, a notice shall be issued which shall clearly state the grounds for the proposed assessment, period(s) of assessment, the date, time and place fixed for such assessment. The notice shall provide a time period of not less than 10 days for production of such accounts and documents as specified in the notice.

 

 

 

(2) A person who has been served a notice under sub-rule (1) shall produce on the specified date and time accounts and documents as specified in the notice together with any objection in writing, which the person may wish to prefer and evidence, which he may wish to produce in support thereof.

 

 

 

Assessment of tax liability

48.

(1) The designated officer after considering the objection(s) and documentary evidence, if any, filed by the person shall pass an order of assessment in writing determining the tax liability of such a person.

 

 

 

(2)         The assessment order shall clearly state the reason(s) for assessment.

(3)         A certified copy of the assessment order, along with Tax Demand Notice, shall be supplied free of cost.

 

 

Amendment of assessment

49.

 

For the purpose of amendment of assessment under sub-section (7) of section 29, a notice shall be issued by the designated officer, to the person, clearly stating the grounds for the proposed amendment, the date, time and place fixed for such amended assessment. After hearing him and making such enquiry as it considers necessary, may proceed to amend the orders as he deems fit subject to the following conditions:

(a)         No amendment which has the effect of enhancing the amount of tax shall be made by any officer, referred to in sub-section (7) of section 29, unless that officer has given notice to the person concerned of its intention to do so and has allowed him a reasonable opportunity of being heard.

(b)         Where such amendment has the effect of enhancing the amount of the tax or penalty the designated officer shall serve on the person a tax demand notice in Form VAT - 56 and thereupon the provisions of the Act and these Rules shall apply as if such notice had been served in the first instance.

(c)         Where any amendment made under sub-section (7) of section 29 has the effect of reducing the tax or penalty, the officer concerned shall order refund of the amount which may be due to the person and the procedure for refund laid down in rule 52 shall apply.

 

 

 

 

Manner of imposition of penalty for offences under the Act and payment of such penalty.

50.

(1) Where it appears to the Commissioner or the designated officer that it is necessary to proceed against a person under sections 52, 53, 54, 55, 56, 57, 58, 59 or 60, as the case may be, such officer shall serve upon such person a notice, directing him to appear before him in person or through an authorised agent and

(a) to produce before him the books of accounts, registers or documents for examination,

(b) to explain the books of accounts or documents produced by such person or evidence that came into possession of the designated officer, and

(c) to show cause on the date specified in such notice, why penalty specified as in the notice should not be imposed on him.

(2) The person may, if he so wishes, prefer any objection in writing or he may adduce any evidence in support of his contention on the date of hearing.

(3) after examining the books of accounts, documents or evidence, produced by the person and considering his objection, the commissioner or the designated officer may, if satisfied with the explanation furnished on the basis of the evidence furnished, not levy penalty. in case, no satisfactory explanation is forthcoming, the officer shall impose penalty upon the person under the relevant section, for the amount as provided under the act and serve a notice upon such person, directing him to make payment of the amount in accordance with the provisions of the act and to produce the treasury challan in proof of such payment, by the date specified in the said notice. the officer shall, in every such case, pass a self speaking order, giving therein reasons for the action taken, one way or the other.

 

Issue of tax demand notice

51.

(1) If any sum is payable by a person under the Act or the Rules framed there under, the designated officer shall serve a notice in Form VAT - 56 upon him specifying the date, not less than fifteen days and not more than thirty days from the date of service of notice, on or before which, payment shall be made and he shall also fix a date on or before which the person shall furnish the treasury challan in proof of such payment.

(2) When the treasury challan is produced, the designated officer shall make the necessary entry in the personal account of the person.

 

 

 

 
CHAPTER - VII

 

REFUNDS

 

 

 

Procedure for refunds

52.

(1) A person entitled to refund of an amount of tax, penalty or interest shall make an application in Form VAT-29 to the designated officer.

 

 

 

(2) The application for a claim of refund under section 18 on account of direct export out of the territory of India, shall be supported by the following documents:

(a)         Copy of the invoice issued to the foreign buyer;

(b)         Transport documents i.e. Bill of lading, Airway Bill, Shipping Bill or similar documents, containing Let Export Order endorsed by Customs authorities;

(c)         Custom clearance certificate in case of export to Nepal and Bhutan; or

any other document which may be prescribed by the Government.

(3) The application for a claim of refund on account of penultimate export shall be supported by the following documents:

(a) Form H prescribed under Central Sales Tax (Registration and Turnover Rules), 1957;

(b) Copy of Bill of lading, Airway Bill, Shipping Bill or similar documents, containing Let Export Order endorsed by Customs authorities;

(c) Copy of the invoice issued to the purchaser.

(4) Where the refund is arising due to excess input tax credit, which may be due to interstate sales, branch transfers/consignment sales or any other reason under the Act, the person claiming refund shall attach the documentary evidence in the form of statutory declarations prescribed under the Central Sales Tax Act, 1956, i.e., C, F, E1 or E2 forms, as the case may be, or any other proof, with the application.

(5) Where the refund is arising out of a judgement of a Court or an order of an authority under the Act, the person claiming the refund shall also append a certified copy of such judgement or order.

 

 

 

(6) No refund shall be allowed if the person has not filed returns or paid tax as per provisions of the Act.

 

 

 

(7) (a) Persons or organizations listed in Schedule G appended to the Act may apply to the designated officer for refund of tax in Form VAT 29A.

(b)         The refund shall be granted only on certification by the person or Chief of the organization that the goods are purchased for use in the official function of the organization.

(c)         Refund of tax under clause (a) shall be allowed on purchases made from a taxable person or a registered person against invoice.

 

 

 

(8)         If the designated officer is satisfied regarding admissibility of the refund, he shall issue, subject to provisions of section 39, refund voucher in Form VAT-30 or refund adjustment order in Form VAT30A, as the case may be, within a period of ninety days from the date of submission of complete documents as prescribed under sub rule (2), (3), (4), (5) and (7), as the case may be.

(9)         Where it is subsequently found that excess refund has been made in any period, the same shall be adjusted against refund to be given in future or against future input tax credit available to such person under section 13 of the Act.

(10)     Where claim for refund is found inadmissible, the designated officer shall issue a notice to the applicant asking him to show cause as to why the application should not be rejected. If the Commissioner or the designated officer is not satisfied with the reasons adduced by the applicant, he may reject the application for refund.

(11)     The refund thus made under section 18 or section 39, shall be entered into a refund register.

(12) The following officers shall be competent to allow refund, arising from a single order upto the amount mentioned against each officer: (i) Commissioner Any amount

(ii) Deputy Excise and Taxation Commissioner Rupees ten lakh

(iii) Assistant Excise and Taxation Commissioner Rupees fifty

thousand

 

 

 

 

 

 

CHAPTER - VIII

 

MAINTENANCE OF ACCOUNTS

 

,Maintenance of accounts by a person

53.

(1) The following records shall normally be maintained by a taxable person:

 

 

 

(a) A monthly VAT account specifying total output tax, total input tax and net tax payable or the excess tax credit due for carry forward.

(b) Purchase records, showing details of purchases on which tax has been paid, purchases made without payment of tax, purchases made from an exempted unit and purchases made from outside the State. Original tax invoices for purchases on which tax has been paid and invoices for purchases made without payment of VAT shall all be retained date wise.

(c) Sales records showing separately sales made at different tax rates, zerorated taxable sales and tax-free sales. Copies of VAT invoices related to taxable sales and invoices related to tax free sales shall all be retained in date and numerical order.

(d) Record of inter-state sales and inter-state transfer of goods, including that of goods sent for job work, supported by statutory declarations and such other evidence as may be relevant.

(e) Details of input tax calculations where the taxable person is making both taxable and tax free sales.

(f) Stock records showing stock receipts and dispatches and stock of manufactured goods.

(g) Order records and delivery challans, wherever applicable.

(h) Annual accounts including trading, profit and loss accounts and the balance sheet.

(i) Bank records, including statements, cheque book counter foils and pay-in-slips.

 

 

 

(2)         The following records shall normally be maintained by a registered person:

 

 

 

(a)         Details of the goods purchased and sold by him; and

(b)         Cash book, daybook, ledger, invoice/bill books and purchase vouchers;

 

 

 

(3) Specimen of sale & purchase registers for taxable person and registered person are available in Form VAT - 31-, Form VAT - 32, Form VAT 33 and Form VAT34 respectively. These specimen are provided to facilitate a person for proper maintenance of accounts. A person may maintain account books as per his requirement and nature of business but these shall contain the information as per the specimen.

 

 

Particulars to be mentioned in a VAT invoice

54.

(1) A VAT invoice shall be issued from duly bound invoice or cash memo book except when invoices are prepared on computer or any other electronic or mechanical device. It shall be at least in triplicate i.e. Original Copy, Second Copy and the last copy. The respective copies of the invoice shall bear these words prominently.

(2) The original copy shall carry the note, Input Tax Credit is available to a taxable person against this copy and the second copy shall carry the note This copy does not entitle the holder to claim input tax credit. The original copy shall be issued to the purchaser, the second copy shall be for transportation of the goods and the last copy shall be retained by the seller.

(3)         The words VAT Invoice shall be prominently printed on the invoice.

 

 

 

(4)         A VAT invoice shall contain, the following details:

(a)         A consecutive serial number printed by a mechanical or electronic process. In case of a computer generated invoice, the serial number may be generated and printed by computer, ONLY IF, the software automatically generates the number and the same number cant be generated more than once;

(b)         The date of issue;

(c)         The name, address and registration number of the selling person;

(d)         The name, address and registration number of the purchaser;

(e)         Full description of the goods;

(f)           The quantity of the goods;

(g)         The value of the goods per unit;

(h)         The rate and amount of tax charged in respect of taxable goods;

(i)            The total value;

(j)            If the goods are being sold, transferred or consigned to a place outside the State, serial number of Form VAT-36;

(k)          Mode of transportation of goods and details thereof; and

(l) Signature of the proprietor/partner/director or his authorized agent.

 

 

Particulars to be mentioned in a Retail invoice

55.

(1) A retail invoice shall be issued from duly bound invoice or cash memo book except when the invoices are prepared on computer or any other electronic or mechanical device. It shall be a t least in duplicate.

(2) The first copy of a retail invoice shall be issued to the purchaser of goods. The last copy shall be retained by the selling person.

(3) A retail invoice shall carry the following details:

(a)         A consecutive serial number, printed by a mechanical or electronic process;

(b)         The date of issue;

(c)         The name, address and registration number of the selling person;

(d)         Full description of the goods;

(e)         The quantity of the goods;

(f)           The value of the goods per unit;

(g)         The total value;

(h)         Signature of proprietor/partner/director/authorized agent.

 

 

Particulars etc. to be mentioned in Credit/Debit Note

56.

(1) A credit/debit note shall be issued from the VAT/Retail invoice book and shall contain the following information:

(a) Words debit note or credit note shall be written on the invoice prominently;

(b) The name, address and registration number of the person to whom issued;

(c) Date and number of invoice to which credit or debit note relates;

(d) Brief explanation about issuance of debit or credit note;

(e) The value of goods and the amount credited or debited along with tax effect.

(2) The note shall carry the date of issue and signature of proprietor/ partner/director/authorized agent.

 

 

Particulars etc. to be mentioned in a delivery challan

57.

(1) A delivery challan for transfer of goods other than by way of sale shall be issued from duly bound book except when the challans are prepared on computer or any other electronic or mechanical device. It shall be atleast in triplicate. The first copy shall be for purchaser/consignee, the second copy shall be for transporter and the last copy shall be retained by the consignor. The serial number shall be printed by a mechanical process.

(2) A delivery challan shall contain the following particulars:

 

 

 

(a)         The words, Delivery Challan shall be prominently printed on the document;

(b)         Serial number of Form VAT-36 in case of interstate transaction;

(c)         Date of transfer of goods;

(d)         Name, address and registration number of the consignee;

(e)         Description of goods, weight, quantity, estimated price per unit and total estimated value of goods;

(f)           Mode of transportation of goods and details thereof;

(g)         Signature of the Consignor.

 

 

Electronic maintenance of record

58.

(1) A person may electronically maintain or generate all or any of the records, returns and invoices prescribed under rules 53 to 57, using a computer, in electronically readable format after informing the Commissioner or designated officer about the system to be followed. Whenever changes are made in the system the person shall inform the Commissioner or the designated officer within fifteen days of such change.

 

 

 

(2)         The printouts (hard copies) of records and documents must be taken out at the end of each month and kept in bound folders, separately for each type of record, returns and invoices.

 

 

 

 

(3)         The person should ensure that proper backup records are also maintained and preserved so that in the event of destruction due to unavoidable accidents or natural causes, the information can be restored within reasonable period of time. All such records, returns, invoices and other documents (both electronic and hard copy, including backups) shall be preserved and retained for a period of six years (counted from the first day of the financial year following the financial year to which a record, return, invoice pertain) or until the assessment becomes final, whichever is later.

 

 

 

(4)         It shall be incumbent upon a person, who maintains electronic records, to produce on demand, the relevant records, in hard copy and/or in the electronically readable format along with the flow and treatment of transactions through accounting system, from the stage of initiation to closure and storage to the designated officer, or the Audit parties deputed by the competent authority.

 

 

 

(5)         He shall also provide account of the audit trail and interlinkages, whether paper or electronic, and the financial accounts record layout, data dictionary and total number of records in each field along with sample copies of such records.

 

 

 

(6)         In case any person is found to be misusing this facility or not providing access to the information or if there are any other cogent reasons, the Commissioner or any other authorised officer may, after recording such reasons and after taking into consideration the explanation tendered by the person regarding the discrepancies, if any, prohibit a person from electronically maintaining or generating any records, returns or invoices using computer.

 

 

Manner of authentication of account books

59.

The authentication of the account books by the designated officer shall be done by appending his signature along with his seal at one or more places in each of the books, or documents, produced before him for this purpose.

 

 

Record of cross checking and notice for survey

60.

The designated officer shall keep a record of the notices issued for the purpose of cross-checking, survey and authentication of account books.

 

 

Search and seizure to be made in accordance with the provisions of the Code of Criminal Procedure

61.

(1) All seizures or searches under section 46 shall be made ,as far as possible. in accordance with the provisions of the Code of Criminal Procedure, 1973.

(2) Any officer, while exercising power under section 46, may take assistance of any police officer of the State.

(3) Any accounts, registers or documents seized under section 46 shall not be retained beyond the period referred to in the aforesaid section.

(4) If any person from whom any accounts, registers or documents have been seized under section 46 does not take delivery of such accounts, registers or documents within the time specified in the notice issued in this behalf, or, such further time as may be considered fit and proper, the designated officer, who is in custody of such accounts, registers or documents may destroy them without further notice to such dealer or person.

Explanation For the purpose of this sub-rule, further time shall ordinarily mean not more than two adjournments.

 

 

Sealing any house, room warehouse, almirah, etc

 

62.

Where a person, transporter, lessee or owner of warehouse fails to open any place, room, almirah, safe, box or receptacle for inspection under section 46 , such place, room, almirah, safe, box or receptacle shall be sealed by the Commissioner or any person appointed under sub-section (1) of section 3 to assist him, and such house, room, almirah, safe box or receptacle shall remain so sealed until the person, transporter, lessee or owner of warehouse come forward to open them in the presence of the officer, referred to hereinabove.

 

Authority to search road vehicle and seize goods at places other than notified place.

 

63.

No search of any road vehicle or warehouse, or seizure of goods transported by such vehicle or stored in such warehouse, at any place other than a place notified under section 51, shall be made by any person, appointed to assist the Commissioner, not below the rank of an Excise and Taxation Officer:

Provided that such an officer may, if necessary, take the assistance of a Taxation Inspector.

 

 

Inspection, search and seizure of accounts, registers and documents of a transporter, carrier or transporting agent.

64.

The provisions of section 46 and rule 61 shall apply mutatis mutandis in respect of inspection, search and seizure of accounts, registers and documents relating to transport business of a transporter, carrier or transporting agent.

 

 

 

 

CHAPTER IX

 

TRANSPORTATION OF GOODS

 

Delivery challan and declaration

65.

(1) The declaration referred to in the first proviso to sub-section (2) of section 51 shall be in Form VAT 12.

 

 

 

(2)         The form referred to in the second proviso to sub-section (2) of section 51 shall be in Form VAT 36.

 

 

 

 

(3)         The declaration referred to in the first proviso to sub-section (4) of section 51 shall be in Form VAT 35.

(4)         The bond with sureties referred to in clause (a) to sub-section (6) of section 51 shall be in Form VAT-37.

 

 

 

(5)         For the purposes of clause (d) of sub-section (7) of section 51 the receipt shall be in Form VAT - 38. It shall be in duplicate. The original copy thereof shall be issued to the owner of the goods or his representative or the driver or any other person in charge of the goods vehicle or vessel, in token of having received the amount of cash security and carbon copy thereof shall be retained by the office.

(6)         A certified copy of the penalty order passed under section 51 shall be supplied to the person free of cost.

 

 

Procedure of furnishing information at the ICC

66.

(1) The owner or person in charge of the goods vehicle shall submit before the authorised person at the Information Collection Centre:

 

 

 

(a) transporters copy of VAT invoice or retail invoice or delivery challan, as the case may be;

(b) declaration for transport of goods to and from the State in Form VAT36, in duplicate; and

(c) G.R. or trip sheet or way bill or log book, as the case may be.

 

 

 

 

(2)         The authorised person at the Information Collection Centre shall enter the relevant information in the computer and generate serially numbered computerized printouts of Form VAT-12 or Form VAT-35, in duplicate, whereafter the documents mentioned in sub rule (1) shall be returned to the person in charge of goods along with the Forms in duplicate.

 

 

 

 

 

 

 

The authorised person shall charge such sum as may be fixed by the Commissioner from time to time as service charges for issuing the computer printouts in Form VAT-12 or Form VAT-35, as the case may be, from the owner or person in charge of the goods vehicle.

 

 

 

(3)         The owner or person in charge of the goods vehicle shall submit original and copies of the documents referred in sub-rule (1) and duly signed copies of Form VAT-12 or Form VAT-35, to the officer in charge of the Information Collection Centre:

 

 

 

Provided that no such copies of the documents shall be required where declaration in Form VAT36 is submitted.

 

 

 

(4)         The officer in charge of the Information Collection Centre shall retain original foil of declaration in Form VAT-36 and a copy of Form VAT - 12 or Form VAT - 35, as the case may be, and shall return duly stamped and signed to the owner or person in charge of the goods vehicle an authenticated copy of each of the documents, namely:

 

 

 

(a)         a copy each of the duplicate copy of VAT invoice or retail invoice or delivery challan and trip sheet or log book or way bill and goods receipt;

(b)         a copy of Form VAT-12 or Form VAT-35, as the case may be;

(c)         duplicate foil of Form VAT- 36:

 

 

 

 

Provided that where Form VAT 36 is not required to be submitted under the rules, the officer in charge shall also retain copies of the documents as mentioned in clause (a) and (b) of sub-rule (5) of this rule.

 

 

Procedure regarding declaration for transport of goods to and from State of Punjab

67.

(1) The Form referred to in second proviso to sub-section (2) of section 51 for the sale or dispatch of the goods by a taxable person from within the State to a place outside the State or for the import of the goods from outside the State shall be in Form VAT - 36. It shall be furnished if the goods are meant for trade, commerce or industry and the amount of a single transaction exceeds rupees ten thousand and are other than the goods declared tax free under section 16.

 

 

 

(2)         The procedure to issue blank Form VAT-36, its use and submission to the designated officer after use shall be as hereinafter provided:

 

 

 

(a) Form VAT-36 shall be got printed by the State Government or in certain cases allowed to be obtained electronically, as prescribed subject to appropriate security measures, on payment of such fee as may be notified from time to time. The Form shall be in triplicate, that is, the counter foil, the original foil and the duplicate foil and shall be issued to the taxable person registered under the Act, on application in Form VAT36-A, by the designated officer against cash payment or treasury receipt of Rupee one for each form.

(b) The taxable person shall apply to the designated officer in Form VAT36-A stating clearly his reasonable demand for a period of not more than three months, disclosing the stock and details of Forms already in his possession and also the number of forms and the date on which these were last issued.

(c) If the Officer referred to in clause (a) is satisfied that the requisition of the taxable person is genuine and reasonable, he may issue him as many forms as he may deem proper.

(d) The taxable person to whom the above said forms are issued, shall be responsible for their proper custody and use. If such a form whether blank or filled up, is lost either from the custody of the taxable person or from any other person in transit, the taxable person shall report immediately the loss to the Officer from whom he obtained it.

(e) On receipt of the report the Officer shall call upon the taxable person to furnish a reasonable security by way of an indemnity bond in Form VAT - 36C in respect of each lost Form separately or in respect of all the lost Forms collectively to safeguard against their misuse and the designated officer shall notify the loss of forms.

(f) If the taxable person closes down his business and surrenders his registration certificate or his registration certificate is cancelled for any other reason, he shall forthwith surrender all the VAT - 36 forms lying unused with him to the officer from whom he obtained them.

(g) The taxable person referred to in clause (b) shall maintain a register containing accounts of such forms in a register in Form VAT 36-B.

(h) The taxable person shall produce the register specified under clause (g) with his application for getting more forms. Part C of the application shall be perforated and affixed in the Account Register in Form VAT 36-B of the taxable person by the Officer issuing the forms.

(i) The State Government may, by notification in the Official Gazette, declare certain serial number, series, designs or colour of Form VAT - 36 as obsolete and invalid. All the taxable persons shall, on or before the date from which the Form VAT - 36 are declared obsolete or invalid, surrender to the Officer, all such forms which may be in their possession and may obtain new forms in exchange.

New forms, however, shall not be issued to a taxable person until he has rendered account of the old forms issued to him and actually returned the balance of forms in his possession, if any, to the Officer.

(j) A taxable person selling/consigning/transferring/exporting goods outside the State outside the territory of India of the value exceeding Rupees ten thousand shall be required to fill up Form VAT - 36, in triplicate with full particulars and shall sign and stamp all the three foils of the Form. The original and duplicate foil of the filled Form alongwith other documents as required under section 51 of the Act shall accompany the goods during the course of transportation. The counter foil shall be retained by the taxable person.

(k) At the first Information Collection Centre before his exit from the State the owner of the goods or the driver of the vehicle or any other person in charge of the vehicle or vessel carrying the goods shall give the original and duplicate foils of the Form to the officer in charge of the said Information Collection Centre who after satisfying himself about its being complete and correct, shall sign and stamp them with his official seal, keep the original foil in his record and return the duplicate foil of the Form to the person who has produced the same.

(l) A taxable person importing or receiving goods of value exceeding Rupees ten thousand into the State from any place outside the State, shall send to the selling dealer or consignor of the other State, two foils of Form VAT - 36 obtained by him under clause (c), duly filled, signed and stamped. He shall retain the counter foil with him;

(m) On his entry into the State, at the first Information Collection Centre, the owner or the driver of the vehicle or any other person in-charge of the vehicle or vessel, carrying goods, as the case may be, shall produce both the above said foils to the officer-in-charge of the said Information Collection Centre who shall, after satisfying himself about their being complete, correct and genuine, sign and stamp them with his official seal and keep the original foil in his record. The officer shall return the duplicate foil of the Form to the person who has produced the same, who shall carry the duplicate foil alongwith goods during their transportation in the State.

(n) The owner of the vehicle or the transport company or the transport agency, as the case may be, shall deliver to the consignee, while delivering the consigned goods, the duplicate foil of the Form duly authenticated by the officer in charge of Information Collection Centre, alongwith Invoice and Goods Receipt.

(o) The importer shall preserve the foil and other documents delivered to him under clause (n) for such period as may be prescribed and produce them before the designated officer whenever demanded by it.

(p) Where a duly completed Form, issued by a purchasing taxable person or consignee to a selling dealer or consignor, is lost in transit or in the hands of the selling dealer or consignor, the purchasing taxable person or consignee shall, on demand, by such selling dealer or consignor, issue a duplicate Form to him in the same manner as the Form originally issued:

Provided that before issuing it, the purchasing taxable person or consignee shall give the following declaration in red ink, duly signed by him, on each of the three foils of such duplicate declaration form:

 

I hereby declare that this is the duplicate in lieu of the original of the declaration form No. __________________ signed on

_________________________ and issued to M/s ______________________________ in respect of ______________ (description of goods) valuing at Rs.____________.

 

(q) No taxable person shall issue any Form except one, obtained by him from the designated officer or downloaded and not declared obsolete or invalid under the provisions of clause (1);

(r) The Commissioner may issue, from time to time detailed instructions for issue of blank forms to a taxable person, their use, submission after use and surrender of unused forms by him to the designated officer and maintenance of record in relation thereto; and

(s) Notwithstanding any thing contained above, if an importer of goods is unable to produce Form VAT-36 at the Information Collection Centre, for whatever reason, he may at his option pay cash security to be calculated at the rate of tax applicable under section 8 on the value of such goods. The cash security so paid at the Information Collection Centre may be adjusted towards his tax liability at the time of filing return under section 26, provided the goods are duly reflected in his account books and declaration in Form VAT 36 is submitted to the designated officer within fifteen days from the receipt of goods by him.

 

 

 

(3)         (a) In case a taxable person is importing goods in value exceeding rupees ten thousand meant for the purpose of trade, commerce and industry from outside the State by Rail, Air, Sea or Post Office or Courier, he or his representative shall fill the original and duplicate foils of the Form VAT-36 obtained by him under the above said rules, depicting the details of import as per invoice/delivery challan, railway receipt, bill of lading or any document of this nature before taking the delivery of the goods.

(b)         The taxable person or his representative shall submit the original foil and the duplicate foils of Form VAT - 36, in the office of designated officer in whose area his business premises fall.

(c)         The taxable person or his representative shall carry the duplicate foil of the Form so obtained, alongwith the goods during the course of transportation from Railway, Airport or Post Office or Courier to his place of business.

(d)         A taxable person selling/consigning/transferring/exporting goods outside the territory of India of value exceeding Rupees ten thousand meant for the purpose of trade to a person outside the State by Rail, Air, Sea, Post or Courier shall fill Form VAT - 36 according to invoice/delivery challan, railway receipt, bill of lading or any document of this nature.

(e)         He shall submit the original foil in the office of the designated officer. The concerned designated officer after verifying the correctness of the Form shall put his signature and affix seal on both the foils. He shall keep the original foil in his official record and return the duplicate foil to the taxable person. The taxable person shall carry the duplicate foil alongwith the goods while transporting the same from his business premises to the Railway Station, Airport, Seaport, Post Office or office of the Courier Services.

(f)           Whoever transports or carries any consignment of the goods referred to in sub-clauses (a) and (d) from or to a Railway Station, Steamer, Airport or Post Office or any other place, he shall carry with him the copy of the Form detailed in these clauses alongwith the other documents and whenever a road vehicle transporting such consignment or person carrying such consignment is intercepted, he shall present such Form along with other documents to such officer as may be authorised by the Commissioner in this behalf; and

(g)         Nothing contained in this rule shall be considered to impose any obligation on railway administration or railway servant or the post office or any officer of the post office or to empower any search, detention or seizure of any goods on a railway premises as defined in the Indian Railway Act, 1890 or in a post office as defined in the Indian Post Office Act, 1898.

 

 

Maintenance of records by carrier of goods

68.

Every carrier of goods or his agent shall maintain true account of goods transported, delivered or received for transport containing the particulars like name, address, registration no. of consignor/ consignee, value and description of the goods. Such record shall be preserved by him for a period of six years.

 

 

Procedure of accepting goods for transportation from the taxable person

69.

(1) No carrier of goods or its agent shall transport or, accept for booking for transportation unless;

(a)         the consignment is covered by a VAT invoice, a retail invoice or a delivery challan;

(b)         a declaration for transport of goods to and from the State of Punjab in Form VAT - 36 with original and duplicate foils duly filled by the consignor, if the value of invoice exceeds Rupees ten thousand;

 

 

 

 

(2)         The transporter shall issue transport receipt for goods received and way-bill in Form VAT-39 and Form VAT-40 respectively.

(3)               The transporter shall enter full particulars of the goods received for transportation in a register to be maintained in Form VAT-41.

 

 

Procedure of delivery of goods by the carrier of goods / transporters to a taxable person

70.

(1) No carrier of goods or its agent shall accept delivery of the goods coming from outside Punjab unless:

(a)         the consignment is covered by an invoice or delivery challan as the case may be;

(b)         a declaration for transport of goods to and from the State of Punjab in Form VAT - 36 duplicate foil duly filed by the consignor and stamped by the officer in charge of the Information Collection Centre, if the value of invoice exceeds Rupees ten thousand;

(c)         goods receipt(GR) originating from place of commencement of transportation;

(d)         the declaration form duly stamped by the officer in charge of the Information Collection Centre in Form VAT-12.

 

 

 

(2)         After receiving the goods the transporter shall enter all the particulars of the consignment in a register in Form VAT - 42.

The transporter shall take an acknowledgement from the taxable person or the receiver of the goods duly signed and stamped on the Good Receipt (GR)/Transport Receipt (TR) and shall enter full particulars in the Form VAT - 42.

 

Taxable person to maintain true account of goods received and goods dispatched

71.

(1) Every taxable person shall maintain true record of goods received or goods dispatched in a register which shall be in Form VAT - 43 and Form VAT 44 respectively.

 

 

 

(2)         No person or any person acting on his behalf shall take delivery of goods, the sale or purchase of which is taxable under the Act, from or deliver the goods for booking to a carrier of goods including an agent of a Transport Company or Booking Agency, unless:

 

 

 

(a)         a copy of the purchase invoice or sale bill or VAT invoice or retail invoice or cash memo or delivery challan or Declaration for transport of goods to and from the State of Punjab in Form VAT - 36, if required, as the case may be, covering the consignment is furnished to the transporter or his representative;

(b)         particulars of consignment intended to be booked are furnished in the forwarding note in Form VAT - 45; the agent who takes delivery or delivers goods for booking is in possession of a letter of authority bearing his signatures duly attested from the consignee or consignor, as the case may be;

(c)         register in Form VAT - 43 or Form VAT - 44, as the case may be maintained by a person registered under the Act, containing entries in regard to such consignment is produced and got authenticated from the carrier of goods or an agent of the Transport Company or Booking Agency, as the case may be;

(d)         stamped endorsement indicating his full particulars and registration certificate number under the Act, if any, is recorded on the Transport Receipt by the consignee; and

(e)         the consignor or the consignee being an unregistered person under the Act, gets the Forwarding Note or the Transport Company Receipt in respect of consignment of goods intended to be booked to a place outside the State, or brought from a place outside the State countersigned from the Excise and Taxation Officer of the district or any other officer authorised by him.

 

 

Auction procedure

72.

The goods detained or seized which have not been released or got released as per due process of law shall be sold in public auction after following the procedure herein after provided:

 

 

 

(1)         The owner of the goods shall have the first choice to reacquire the goods on payment of tax, penalty or other dues for which the designated officer shall issue a notice calling upon such person to re-acquire the goods within time specified in such notice and on such persons failure to do so the goods shall be put to public auction.

(2)         The auction shall be conducted by a committee comprising of three officers, i.e. Assistant Excise and Taxation Commissioner in charge of the district or Assistant Excise and Taxation Commissioner (mobile wing) or Assistant Excise and Taxation Commissioner(enforcement) as the case may be, and two Excise and Taxation officers.

(3)         The auction shall be conducted after the Assistant Excise and Taxation Commissioner or designated officer or the officer concerned certifies that the goods have not been got released even after the process of law has been completed or the goods are of perishable nature and need immediate disposal.

(4)         The Assistant Excise and Taxation Commissioner in charge of the district may fix a particular day(s) in a year for putting the goods seized or detained to auction and such date shall be widely publicized.

(5)         The Assistant Excise and Taxation Commissioner in charge of the district shall cause to be published on the notice-board of his office a list of the goods detained or seized and intended to be sold. The notice in prescribed Form VAT - 46 shall specify the place, day and time of auction. A notice of fifteen days shall be given before the auction sale is to be conducted. A copy of such notice and list of goods shall also be displayed at one or more public places, Information Collection Centres and office of the Assistant Excise and Taxation Commissioner in charge of the district in which the goods were detained or seized and, if considered necessary, wide publicity of such auction may be given in leading news paper(s). Before doing so the Assistant Excise and Taxation Commissioner in charge of the district shall issue a notice in Form VAT - 47 to the owner of the goods.

(6)         The intending bidders shall deposit the earnest money equivalent to a sum amounting to ten percent of the estimated value of the goods before the commencement of the auction.

(7)         The auction proceedings shall be recorded in writing in Form VAT- 48.

(8)         The final bid shall be approved by the Deputy Excise and Taxation Commissioner in charge of the Division, if the auction money exceeds Rupees fifty thousand.

(9)         The auctionpurchaser shall pay the sale value of the goods in cash immediately after the sale and he will not be permitted to carry away any part of the goods until he has paid for the same in full and until the sale has been confirmed by appropriate Authority mentioned in clause (8). Where the purchaser fails to pay the bid money, the goods shall be resold by auction at once and earnest money deposited by the defaulting purchaser shall be forfeited to the Government. The earnest money deposited by the unsuccessful bidders shall be refunded to them immediately after the auction is over.

(10)     After receiving the amount in the above said procedure the goods shall be delivered and a receipt shall be issued in Form VAT - 49.

 

 

 

 

 
CHAPTER X

 

APPEAL AND REVISION

 

Submission of appeal

73.

(1) Every appeal or an application for revision other than an appeal or an application for revision to the Tribunal shall be made in writing in duplicate and shall:

 

 

 

(a)         Specify the name and address of the appellant;

(b)         specify the date of the order against which it is made;

(c)         specify the authority against whose orders the appeal is made;

(d)         contain a clear statement of facts and grounds of appeal;

(e)         state the reasons for the delay in appeal, if any;

(f)           state precisely the relief prayed for; and

(g)         be signed and verified by the appellant or by an agent duly authorised by him in that behalf in the following form, namely:

 

I_____________________________________Proprietor/Partner/Director/Agent appointed by the appellant named in the above memorandum of appeal, do hereby declare that facts as stated above are true to the best of my knowledge and belief.

 

(Signature)

 

 

 

 

(2)         The memorandum of appeal shall be submitted along with the order in original, against which it is made or duly authenticated copy thereof, unless the omission to produce such order or copy is explained at the time of the presentation of appeal to the satisfaction of the appellate authority.

 

 

 

(3)         Receipt for statutory payment of twenty five percent of the amount shall also be submitted with the memorandum of appeal.

 

 

 

(4) The memorandum of appeal or application for revision shall either be presented by the appellant or applicant or his agent to the appellate or revising authority or be sent to be said authority by registered post.

 

 

 

(5) An appeal or application for revision to the Tribunal shall be in the manner specified in the regulation made by the Tribunal.

 

Summary rejection

74.

(1) If memorandum of appeal is not filed as per provisions of rule 73 the appeal shall be summarily rejected:

Provided that no appeal shall be summarily rejected under this sub-rule unless the appellant has been given a reasonable opportunity of hearing or to amend the memorandum of appeal.

 

 

 

(2)         Appellate authority may dismiss an appeal by order in writing, if it is not filed within the stipulated period of thirty days. The appellant shall explain to the satisfaction of the appellate authority such delay giving day to day account:

Provided that before an order dismissing an appeal under this sub-rule is passed, the appellant shall be given a reasonable opportunity of being heard.

 

 

Hearing

75.

(1) (a) If the appellate authority does not reject the appeal summarily or dismisses the appeal it shall fix a date for its hearing.

 

 

 

(b)         The appeal shall be decided after notice to the respondent alongwith a copy of memorandum of appeal.

 

 

 

(c)         If the respondent intends to file a written statement he shall do so three clear days before the appointed day of hearing.

 

 

 

 

(d)         The appellate authority may frame the issues involved in the case in the presence of the parties or their authorized representatives.

 

 

 

(e)         Before deciding the case, the appellate authority may hold such further enquiry or direct it to be held by an officer appointed under sub-section (1) of section 3 of the Act, as may appear necessary to him. The authority shall adjudicate on the issues after hearing both the parties.

 

 

 

 

(2)         The authority aforesaid may for sufficient reasons adjourn at any stage, the hearing of an appeal to a different time on the same day or any other day.

 

 

 

 

(3)         If on the date and at the time fixed for hearing or any other date or at any other time to which the hearing may be adjourned the appellant does not appear, the said authority may dismiss the appeal or may decide it ex parte on merits as it may think fit:

 

 

 

Provided that if, within thirty days from the date on which the appeal was dismissed or order is served to, the appellant makes an application to the appellate authority for setting aside the order and satisfies it that the intimation of the date of hearing was not duly served on him or that he was prevented by sufficient cause from appearing, the said authority shall make an order setting aside the dismissal or ex-parte decision upon such terms as it thinks fit, and shall appoint a day for proceeding with the appeal.

 

 

Stay of recovery of balance amount

76.

The appellate authority may on an application filed in this behalf in an appeal stay recovery of the balance amount of seventy five percent provided he passes such an order in writing clearly giving reasons therefore:

 

 

 

Provided that a stay application filed under this rule shall be disposed off within thirty days of its filing, failing which recovery of the balance amount shall be deemed to have been stayed till the disposal of the application.