Uttar Pradesh State Government in order to augment revenue from VAT has issued a Notification No.K.A.NI-2-1169 dated 29.05.2009 directing payment of a new tax “Special Additional Tax” of 0.5% for Schedule 2 items (VAT 4%) and “Special Additional Tax” of 1% for Schedule 5 items (VAT 12.5%). This “Special Additional Tax” SAT is payable from 1.6.2009 and should be shown separately in the invoice as this SAT is eligible for VAT credit.
Governments are caretakers of people and the society and hence they are the best judges to decide on quantum of revenue required, but when they act with a little or no planning is what affects the business community at large. The notification for the new tax was issued on 29.05.2009 which is a Friday to be implemented from 1.6.2009 which is a Monday.
We being honest tax payers will like to follow all regulations to the last word. But a new tax, a separate line item in the invoice, is it possible to change over the weekend? Further this notification was issued and there was no publicity for the same, we have to come to know from our lawyers? What is the necessity to carry out this amendment with just 2 days lead time? Can not the Government plan ahead or can it not give 1 month notice and commence from 1.7.2009.
These short notice changes leave companies scurrying for changes in their software, working methods. These days with network softwares like SAP it is not easy to change it has its own lead time and cost involved.
Tax authorities please take note of these practical difficulties before changing legislations.
nice and detail collection of information
ReplyDeleteDoes it mean that there is no difference between VAT and SAT as they both go to state government and TIN is sufficient for SAT
ReplyDeleteSAT is to be levied at0.5% and 1%for Sch 2 andSch 5 items respectively.Can a food joint charge SAT(2%) on ice cream?
ReplyDeleteSAT is to be levied at0.5% and 1%for Sch 2 andSch 5 items respectively.Can a food joint charge SAT(2%) on ice cream?
ReplyDeleteWhat is the Percentage of SAT on tyres & Tubes in UP
ReplyDeleteNice article. Thanks for sharing.
ReplyDeleteHOW MUCH SAT CAN BE LEVIED ON MACHINERY PARTS WHICH ARE BEING SOLD @ 12.5% VAT.
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ReplyDelete