Punjab Value Added Tax Act, 2005

No: 8 Dated: Apr, 01 2005

Punjab Value Added Tax Act, 2005

Act No. 8 of 2005

    An Act to provide for the levy and collection of value added tax and turnover tax on the sales or purchases of goods and for the matters connected therewith and incidental thereto, and for the repeal of the Punjab General Sales Tax Act, 1948.

    BE it enacted by the Legislature of the State of Punjab in the Fifty-sixth Year of the Republic of India as follows:- 

CHAPTER - I

PRELIMINARY

1. Short title and commencement:- (1) This Act may be called the Punjab Value Added Tax Act, 2005.

(2) It shall come into force from the 1st day of April, 2005.

2. Definitions. - In this Act, unless the context otherwise requires, -

(a) “account books” means record of business transactions and includes accounts, registers and documents maintained in any manner including electronic medium;

(b) “appointed day” means the date on which this Act comes into force;

(c) “business” includes -

(i) any trade, commerce, manufacture, adventure or concern whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit and whether or not any profit accrues there from; and

(ii) any transaction in connection with or ancillary or incidental to such trade, commerce, manufacture, adventure or concern;

(d) “capital goods” means any plant, machinery or equipment including equipment for pollution control, quality control, laboratory and cold storage, used in manufacturing, processing and packing of taxable goods for sale;

(e) “carrier of goods” includes a person or a transport company or a booking agency, who transports, receives or delivers goods;

(f) “casual trader” means a person other than a taxable person or registered person, who whether as principal, agent or in any other capacity, undertakes occasional transactions in the nature of business involving purchase, sale, supply or distribution of goods or conducting any exhibitioncum-sale in the State, whether for cash, deferred payment, commission, remuneration or other valuable consideration;

(g) “Commissioner” means the “Excise and Taxation Commissioner”, appointed by the State Government under sub-section (1) of section 3;

(h) “declared goods” means goods declared under section 14 of the Central Sales Tax Act, 1956, to be of special importance in inter- State trade or commerce;

(i) “designated officer” means an officer appointed under section 3 and conferred with the powers to carry out any of the purposes of this Act by a notification issued by the State Government;

(j) “document” means title deeds, writing or inscription and includes electronic data, computer programs, computer tapes, computer discs, photographs, video tapes and the like that provides evidence;

(k) “goods” means all kinds of movable property, whether tangible or intangible, other than newspapers, actionable claims, money, stocks, shares and securities and includes livestock, growing crops, grass, trees, plants attached to or forming part of the land, which are agreed to be severed before the sale or under the contract of sale;

(l) “goods vehicle” includes –

(i) any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer constructed or adapted for use for the carriage of goods and any vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers, but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or any other enclosed premises; and

(ii) any animal - driven or man - driven vehicle used for the carriage of goods solely or with passengers;

(m) “gross turnover” includes the aggregate of the amounts of sales and/or purchases made by any person during the given period, including any sum, charged on account of freight, storage, demurrage, insurance and for anything done by the person in respect of the goods at the time of or before the delivery thereof;

(n) “import” means bringing of goods into the State from any place outside the territorial jurisdiction of the State;

(o) “input tax” in relation to a taxable person means value added tax (VAT), paid or payable under this Act by a person on the purchase of taxable goods for resale or for use by him in the manufacture or processing or packing of taxable goods in the State;

(p) “input tax credit” means credit of input tax (in short referred to as ITC) available to a taxable person under this Act;

(q) “manufacture” includes any activity that brings out a change in an article or articles as a result of some process, treatment, labour and results in transformation into a new and different article so understood in commercial parlance having a distinct name, character, use, but does not include such activity of manufacture as may be notified otherwise;