Vat on Cell Phones in Punjab

-          Originally taxable @ 5% under entry 60 of Sch B

-          Vide Notification 7-01-2011, entry  no. 60 sub entry 6 was omitted which contained words “Cellular Telephone” 6(g)

-          However AETC Mohali clarified that cell phones shall continue to be taxable @ 5%

-          ETC in order dated 16-05-2011, ratified the stand of AETC Mohali saying that principal entry no. 60 which contains the words “Cell phones” has not yet been omitted.

-          Later vide notification dated 24-07-2011, entry no. 60 of Sch B amended and words cell phones was omitted and inserted in Sch E making it taxable @ 8.8% (8 + 10%)

-          W.e.f 03-09-2012, due to 0.5% increase in basic vat rate and increase of 0.55% in effective vat rate, now the cell phones are taxable @ 9.35% w.e.f. 03-09-2012