Guj-VAT Notification: Disallowance of ITC

In a latest Notification dtd.29-Jun-2010, the Gujarat Government has notified –

1.       Input Tax Credit will be reduced by 2% on taxable turnover of Purchases when –

a.       the goods are sold / resold in the course of inter-state trade and commerce; 

[...]

Service Tax Amendments – The Finance Act, 2010

[By Shaleen Shah (Partner), VNCA]

DOWNLOAD PDF FILE

Budget-2010 proposed several amendments under Service Tax. The Finance Bill, 2010 presented on 26-Feb-2010 was enacted & received the assent of the President on 8-May-2010. Post Budget, several notifications were issued to effect certain budget proposals. In a further Notification No. 24/2010-ST dtd. 22-Jun-2010, the Government has notified 1-Jul-2010 [...]

Gujarat VAT Amendments

Addition / Amendment of Entries in Industrial Input List
Chemicals notified as industrial input items covered in notification attached to entry 42/A- are taxable at 4%+1% Additional Tax. Until now, the list of chemicals covered under entry 42/A have been notified vide the Notifications Nos. GHN-33/2006 dtd. 31-Mar-2006; GHN-46/2006 dtd. 29-Apr-2006 & GHN-17/2006 dtd. 22-May-2007.
In a [...]

Gujarat VAT Rules Amendment – TDS Procedure Notified

We had informed you vide our earlier Circular dated 7-Dec-2009 about the TDS provisions under the Gujarat VAT laws. As per provision of Section-59 B of the Gujarat VAT Act 2003, a person who awards “specified works contract” of Rs.One Crore or more is responsible for deduction of VAT from the payment of “specified sale [...]

FAQs: TDS Provisions under Gujarat VAT Laws

The Gujarat VAT Amendment Act of 2009 has introduced a new provision for obtaining Tax Deduction Account Number (TDN) by the person who awards works contracts exceeding Rs.1 crore. Let us revisit the provisions of TDS on Works Contracts under the Gujarat VAT laws through the following FAQs:
1. Who is liable for tax deduction?
A person [...]

Gujarat VAT Pending Returns – deferment of new penalty provisions

Recently The VAT Department has issued one circular that if any Monthly, Quarterly or Annual Returns are pending since 01.04.2006, and if the dealer submits such pending returns on or before 30.09.2009, the Department will levy penalty as per old Rules i.e. Rs.100/- per month. After 30.09.2009, penalty will be imposed as per the amended [...]

Gujarat VAT Amendments – Enacted w.e.f. 1-Aug-2009

As informed to you through our Circular dated 27-Jul-09, the Gujarat VAT (Amendment) Bill, 2009 (No. 18/2009) is enacted w.e.f. 1-Aug-09.  In continuance thereof, your attention is further drawn to the following Amendments & Notifications:

1.      Penalty for late submission of return is prescribed as under.

(A)      Penalty for Return late up to 7 days [...]

Gujarat VAT (Amendment) Bill, 2009 (No. 18/2009)

In the referred Bill, following important amendments are proposed which are likely to come into force w.e.f. 01/08/2009:

Entry No. 9 of Schedule II for Brass Parts & Entry No. 18 of Schedule II for (i) Chemicals of All types & (ii) Solvent are deleted. Hence the said items will fall under residuary entry II/87. Accordingly, [...]

Finance (No. 2) Bill, 2009 – Changes in Service Tax

The Finance (No.2) Bill, 2009 (the Bill) has proposed to make certain changes in Chapter V of the Finance Act, 1994 (the Act), the law governing service tax, some of which are effective on the enactment of the Bill and some thereafter from a date to be notified. In addition to the above, the Central [...]

Procedure for all remittances to non-residents w.e.f. 1-Jul-09

Section 195 of the Income-tax Act, 1961 mandates deduction of income tax from payments made or credit given to non-residents at the rates in force.
For any remittance to non-resident, except in the case of certain personal remittances which have been specifically exempted by RBI, the following revised procedure will be required before remittance:

The person making [...]