In a shocker for the families with weddings lined up this season,the excise and taxation department from Thursday increased the advance VAT payment from Rs 40,000 to Rs 1.35 lakh.
This amount has to be paid by all the consumers who are organising weddings. It is more troublesome for families who want to serve alcohol in weddings as to get the permit from the excise department which is for Rs 10,000,one has to pay VAT in advance.
Surprisingly,there are no written orders by the Punjab government in this regard and the excise department is going by verbal orders.
When contacted,Bhupinder Gupta,assistant excise and taxation commissioner,confirmed that from Thursday people are being asked to pay Rs 2.50 lakh as advance VAT has been fixed at Rs 1.35 lakh which is mandatory to pay.
On the government orders,he said,Only verbal orders have come and the implementation has started. Written orders will arrive soon.
This step has been taken to teach a lesson to marriage palace owners who do not pay us the right VAT amount and do improper billing. We know it will affect consumers but marriage palaces take far more money than what they issue bills for and pay less tax, Gupta said,justifying the move.
However,the actual amount a consumer has to pay is Rs 2.45 lakh as tax because it also includes Rs 1 lakh as luxury tax and Rs 10,000 for permit if liquor is to be served.
I went to excise department today as I wanted to get liquor permit,but came back without getting it. I cannot pay Rs 2.45 lakh as tax for liquor which will be worth less than this amount, said a parent whose daughters wedding is scheduled for the coming week.
For those who do not want to serve liquor,they have to pay this fixed Rs 1.35 lakh and luxury tax in the name of advance VAT on food.
Even if the bill of a customer does not reach the amount to fetch Rs 1.35 lakh,he has to pay this amount which has been fixed by excise department. This is simply a way to complete targets as Diwali is approaching and collections have to be increased. That is why this amount has been fixed, said a marriage palace owner. Where will the common man go?