The Punjab Value Added Tax (Amendment) Act, 2008

/ [TOBEPUBLlSIIEIlINTHEGAZETn:OF'INI)IA, EXTRAORDINARY,PART-II, SE9~ON3, SUB-SECTION(i) OFDATED"e;:''l2OO91 MINISTRYOfHOMEAFFAIRS NOTIFICATION G.S.R.(E).-Inexerciseof!hePDwersoonfemdbysection87ofthePunjabReorganiS3tion Act. 1966(3tof1966).theCenualGovernmentherebyexlendstotheUnionterTiiOf)'of Chandigarb.thePunjabValueAddedTax(Amendment)At...2008(PunjabActNo.14of -2008).asinforceintheSUleofPunjabonliltdIlleofpublicalionofthisnotification,subject tothefollowingmodifications,namely:- MODIFICATIONS

In the Punjab Value Added Tax Act, 2005 (hereinafter referred to as the principal Act), in section 2, in clause (zg), in the Explanation, after item (7), the following item shall be added, namely:- "(8) The amount received or receivable by oil companies for the sale of diesel and petrol will be deemed to be equivalent to the price, on which the retail outlet will sell these commodities to the consumer."

In the principal Act, after section 8, the following section shall be inserted, namely:- "8-A. (1) Notwithstanding anything contained in any provision of this Act, the State Government, if satisfied that it is necessary or expedient so to do in public interest, may, by notification in the Official Gazette, direct that in respect of any goods or class of goods a person may, at his option, pay such lump-sum tax, subject to such conditions, as the State Government may specify in the notification. (2) In case, a person opts for payment of lump-sum tax, under sub-section (1), he shall not,- (a) issue VAT invoice for sale of goods made by him, and no taxable person, to whom goods are sold by such person, shall be entitled to claim any input tax credit in respect of such sale: and (b) be entitled to claim any input tax credit and purchase made by him. (3) The person, who has opted under sub-section (1) shall be at liberty to cancel his option by making an application to the designated officer in such form, as may be prescribed."

In the principal Act, in section 19, for sub-section (5), the following sub-section shall be substituted, namely:- "(5) Input tax credit, on the goods specified in schedule 'H' or the products manufactured there from, when sold in the course of inter-State trade or commerce, shall be available only to the extent of Central Sales Tax, chargeable under the Central Sales Tax Act, 1956."

TaxAmendmentAct,2008",thewords"lISextendedtotheUnionlerritoryof Chandigarh"shallbeinserted.