CHAPTER III : LEVY OF PURCHASE TAX : Punjab Vat Act 2005
CHAPTER III : LEVY OF PURCHASE TAX
Levy of purchase tax on certain goods
19. (1) Notwithstanding anything contained in this Act, there shall be levied VAT on the taxable turnover of purchase of the goods specified in Schedule-H at the rate applicable to such goods as per the Schedules.
(2) The tax shall be leviable on the first purchase of these goods from within the State. In case of Milk, however, first purchase shall be, when purchase is made by a manufacturer of taxable goods:
Provided that on subsequent sales of such goods, VAT on sale price shall be leviable as per the provisions of this Act.
(3) Subject to the provisions of this Act, the purchaser of the goods, specified in Schedule-H, shall have to be registered for VAT.
(4) The purchase tax paid by a taxable person, shall not be admissible as input tax credit, unless the goods are sold within the State or are used for manufacture of taxable goods in the State for sale or are sold in the course of inter-State trade or commerce or in the course of export.
(5) Input tax credit, on goods liable to tax under sub-section (1), 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.
Levy of tax on turnover of purchase of goods in certain circumstances
20. (1) Where a taxable person purchases taxable goods from a person other than a taxable person or a registered person, and -
(a) uses such goods in the manufacture of goods, declared tax-free under section 16; or
(b) uses such goods in the manufacture of any goods other than those specified in Schedule-A, and sends the goods so manufactured outside the State otherwise than by way of sale in the course of inter-State trade or commerce or exports out of India; or
© disposes of such goods in any manner other than by way of sale in the State; or
(d) despatches them to a place outside the State otherwise than as a result of sale in the course of inter-state sale, trade or commerce or export out of India,
there shall be levied a tax on the taxable turnover of purchases of such goods at the rate applicable to such goods as per the Schedules :
Provided that no tax shall be levied under this section, if a tax has already been paid on such goods under section 19.
(2) Where a registered person purchases taxable goods from a person, other than a taxable person or a registered person, and disposes of such goods in any manner, there shall be levied a tax on the turnover of such purchases at the rate(s) specified in the Schedule(s).