News from Union Territory – Chandigarh

The Government of India approved an amendment in the Punjab VAT Act as applicable to the Union Territory, so as to facilitate the implementation of deemed assessment scheme under which the pending assessments would be cleared.

Source : Punjab & Haryana Taxes, Vol. 34, November 2009. (2009) 34 PHT 175 (JS).

News from Himachal Pradesh

For enforcing the transparency in the tax administration, the State of Himachal Pradesh prescribed the time frame, within which the various requisitions received under the Himachal Pradesh VAT Act and Central Sales Tax Act were to be complied. As for example, for issuance of duplicate Registration Certificate, the period of three days have been prescribed, while for issuing statutory forms like ‘C’ Forms, ‘H’ Forms etc., the officer have to issue the same on the very same day when the application was received. This is a welcome measure adopted by the Himachal Pradesh Government. We hope other States will emulate suitably.

Source : Punjab & Haryana Taxes, Vol. 34, November 2009. (2009) 34 PHT 174 (JS).

News from London

1. Voluntary Disclosure Scheme

The Revenue announced the details of new disclosure opportunity scheme, so as to encourage taxpayers to disclose their undisclosed offshore income and gains, under which a penalty of only 10% was to be paid in addition to the tax as per the provisions of the law.

2. Increase in the rate of VAT

The Revenue circle issued guidance for the taxpayers in regard to the increase in standard rate of VAT from 15% to 17.5% which will be effective from 1st January 2010. Simultaneously, the charges were also explained in regard to supply of services. The aforesaid measures were to be introduced for simplification or modernising the VAT system for cross-border trading and to counter fraud across the European Union countries.

Source : Both the above news – eBulletin – September 2009 by Lubbock Fine Chartered Accountants, London.

News from Punjab

The Governor of Punjab declared the Industrial Policy for 2009 to facilitate the development of industry in the State of Punjab.

Source : Punjab & Haryana Taxes, Vol. 34, October 2009, Page 133 (JS).

News from Uttar Pradesh - Job work – no ‘F’ Form

Mr Rishi Raj Kapoor, Advocate from Allahabad, has intimated that the requirement of furnishing Form ‘F’ for the goods sent for job work, as also for the goods returned have been quashed by the Division Bench of the Hon’ble Allahabad High Court by following the ratio of the Supreme Court decision in the case of M/s Ambica Steels vs. State of Uttar Pradesh.

Source : Mr Ashwani Kumar Tyagi, Managing Editor, National Law Book Publications (e-mail dated 2nd December 2009).