The Chandigarh Administration has decided to levy value added tax (VAT) on dhaba owners. They have been given the option of paying a lump sum tax on annual basis,as per the Punjab Value Added Tax Act,2005. In case a dhaba owner intends to close shop for the whole year,he has to inform the Administration about it at least 10 days before the financial year closes,failing which the owner will have to pay the lump sum tax for the year. If a dhaba owner opts for payment of lump sum tax for the first time in the middle of a year,he will have pay it on pro-rata basis. The payment of lump sum tax can be done in 12 equal monthly instalments with an increase of 8 per cent every year on the tax paid in the previous year.
