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This is an archive article published on October 1, 2013
Property tax: Rebate date extended
Collection starts from today.
As the Punjab government readies to collect property tax from Tuesday,the local bodies department has extended up to November 30 the rebate of 10 percent on the total tax payable for this year starting April 1.
However,the department has not been able to put in place the Internet gateway that provides an online facility to pay the tax. The department was to provide a link on the Punjab government portal for online payment of the tax after self assessment from October 1. Other than the Ludhiana Municipal Corporation,no district has offered this facility.
Early this month,Punjab Governor Shivraj V Patil had approved the promulgation of the ordinance imposing property tax in the state. The 10 per cent rebate was valid till September 30. On September 25,the government decided to extend the last date for the rebate. If property tax is paid till or on November 30,the tax payer will get a discount of 10 per cent. The tax will be collected at par from December 1 to December 31 after which if the payment is made,a penalty of 25 per cent will be imposed.
Everyone owning a residential home or a commercial property or even a vacant plot has to pay property tax. The payment of tax is expected to be done on the basis of a self assessment done by the owner. The forms for the assessment are available in the office of the municipal bodies,Suvidha centres and also the district website.
However,other than Ludhiana and SAS Nagar websites,the self assessment form is not available on any district website till date. The Jalandhar district website is offering the old formula to calculate house tax and has not even acknowledged the imposition of property tax that replaces house tax. The other district websites have no mention of property tax.
Self assessment has to be done on the basis of a formula that includes knowledge of collectors rates of the area in which the property falls. The collector rates for 2013-14 of various districts ae available on all district websites.
Cabinet set to replace entry tax with advance tax
The Punjab cabinet,on October 3,is set to give nod to replace entry tax charged in state with an advance tax payable by VAT payers at inter-state barriers.
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Currently,the state excise department collects entry tax as part of VAT from traders and manufactures importing goods into the state. This tax is paid at the entry points to Punjab. Though this tax is a part of the VAT,it is being construed as a separate tax,charged over and above VAT collected by the department leading to a confusion among tax payers.
In other states,entry tax is an additional tax charged over and above VAT. Generally,it is 1 per cent over whatever VAT is payable. The collection of this entry tax (charged over and above VAT) is mired in litigation across the country. Courts,while granting relief in such cases,exempt the tax payers from payment of this tax.
In Punjab too,the state has lost almost Rs 1,500 crore last year with VAT payers challenging the payment of this tax by referring to it as entry tax and citing judgments from other courts where relief has been given on payment of this tax. The fact,however,is that the entry tax collected in Punjab is not the entry tax that is under litigation across the country. It is merely the VAT paid in advance at entry points, said a senior excise official.
He added: It was decided in 2011 that entry tax be replaced with advance tax so that there is no confusion regarding its meaning and definition. However,the decision could not be implemented. The matter will now be brought as a memorandum before the cabinet,which meets on October 3.
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The cabinet will also finalise the date for the next Assembly session likely to begin in the last week of October and last less than a week.
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