Single Stage
Taxation system, now while it is flowing and roaring in the taxation system of
Punjab requires attention at a few subtle points:
1. Not Supported by appropriate Legislation
Schedule
A and Schedule E have been amended to give effect to single stage taxation
system. While Schedule A has its genesis in Section 16, Schedule E bears its
roots in Section 8. As per Schedule A , specified commodities have been made
tax free at wholesaler or distributor or retailer stage. However, section 16
bears no relation with stages of goods
At
the same time, Schedule E has made specified goods taxable at first point of
Sale i.e. manufacturer or first importer, while section 8 has not been amended
at all .
Hence first point
taxation system at first instance appears to be ultra vires the provisions of
Punjab Vat Act.
