As per 3rd Proviso to Rule 36 of Punjab Vat Rules if annual tax liability of the dealer exceeded Rs. 2 lacs during previous year, he was required to file monthly Vat 16 during all subsequent years irrespective of the fact his tax liability decreases from Rs. Two lacs. The excise and taxation department vide Notification dated 20-02-2016 but displayed on website on 02-04-2016, has removed this requirement by omitting third proviso to Rule 36. This shall provide the assesses much desired relief from unnecessary filing of monthly returns and is a step in right direction. Hence the monthly filing of return is required only if annual tax liability of previous year exceeded Rs. 2 lacs and not in subsequent year