Tax World

P. C. Joshi, Advocate

News from Gujarat

While presenting the budget for the year 2008-09, the Finance Minister of Gujarat has proposed to raise additional financial resources by imposing an additional tax in addition to the existing tax levied on the sale of goods. Accordingly, an additional tax would be levied @ 1 paisa in a rupee on all goods which were liable to be taxed @ 4 paise and @ 2.1/2 paise per rupee on all other taxable goods. It was also announced that the additional tax would also be vatable on the same footing as the VAT itself. Therefore, the tax credit would be available for the additional tax that may be charged in the tax invoice by the seller. The Finance Minister, however, clarified that no such additional tax would be leviable on the sale of petrol, diesel, declared goods and the goods which are exempted.

Note : The levy of additional tax is a departure to the uniformity that was sought to be achieved in the country.

Source : Sales Tax Journal , Vol. 46, Part 11, Page 1234.

News from Haryana

The State of Haryana have established a Legal remembrancer as the head of Law and Legislative Department, consisting of two District and Sessions Judges from Superior Judicial Services with Deputy Secretaries, Legislative officer and one Under Secretary etc. The main functions of this new authority would be to draft the legislative enactments, conveyancing, vetting of several legal documents, codification of law, overseeing the working of State and Public officers in regard to litigation and giving opinion on legal affairs.

This is a new line of thinking in the working of the legislative field and therefore we welcome such a new department for better functioning and improvement of the drafting.

Source : Punjab & Haryana Taxes, Vol. 31, Part 1, Page 3