With this amendment, sales tax from now on would also be charged on work contractors involved in construction, manufacturing, processing, fabrication, erection, modification, improvement or commissioning of any movable or immovable property.

Besides, such sales tax would also be applicable to those dealing in supply of tents and cutlery, besides those supplying goods on hire purchase or those offering goods for use for a certain period.

Although imposition of such sales tax comes into effect from March 8, when the Chandigarh Administration notified the Central government amendments in the ST Act, the provision still have not been made applicable in the UT.

Confusion also persists among UT offices and hoteliers who have been brought under the purview of sales tax. Hoteliers, who were earlier exempted from such a tax a few years ago, have raised a hue and cry over its imposition. Hotel Owners' Association of Chandigarh president B. B. Bahl, said that such tax would ruin their business and would further harm the already competitive industry.

Officials say that all such firms which have now come under the ambit of sales tax are liable to be registered with effect from the date their turnover increases their taxable limit. While for hoteliers, the taxable limit is Rs 40,000, for others it is Rs 1 lakh for a financial year.

Tax liability derives from the changed of definition of "sale" under the amended Act, which now includes "service".

Similarly, other definitions have been amended. "Works contract" has also been included in the Act for imposition of sales tax.

Meanwhile, the Centre has accorded its approval to the other amendments in the Punjab General Sales Tax (Amendment) Act, 1990, thus empowering the Chandigarh Administration to impose a maximum tax of 12 per cent, instead of the present 10 per cent, on all Schedule `A' (luxury) items.

It has also been empowered to impose a minimum tax of 8 per cent on all general goods, instead of the 7 per cent sales tax at present. Incidentally, the Administration has already imposed tax of 8 per cent on many such general items in the Union Territory even before this amendment came into effect.

Through this amendment, the Administration has also been empowered to defer payment of tax imposed on any class of industries or exempt any such class of industries from the payment of such tax for such periods. This will be done in the interest of the UT's industrial development and can be done either prospectively or retrospectively. Similarly, while according its nod to the amendment in the Punjab General Sales Tax (Second Amendment) Act, 1993, the Administration has now also been empowered to impose a lumpsum tax on a dealer in respect of any class or class of goods.