Punjab VAT-Rate of tax on iron and steel enhanced to 3.5%

Punjab VAT-Rate of tax on iron and steel enhanced to 3.5%

Punjab Government has enhanced rate of tax on iron and steel goods as enumerated in clause-iv of Section 14 of Central Sales Tax Act, 1956 except Non-Cenvat paid lron and Steel Scrap from 2.5% to 3.5%. After adding surcharge of 10% u/s 8-B of Punjab VAT Act 2005 the effective rate is now 3.85%.

Similarly rate of tax on Plastic granules, plastic powder, master batches, Polyvinyl Chloride, Linear low density Polyethylene (LLDPE) and low density polyethylene (LDPE),High density Polyethylene and Polymers of propylene in primary forms. has been changed to 8.5%. After adding surcharge the effective rate will be 9.35%.

Rate of tax on Aviation Turbine Fuel when sold at the airports in Punjab to scheduled and non scheduled airlines carrying passengers is now 4% and after adding surcharge effective rate will be 4.4%.

These changes are applicable from 11.03.2015