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Query No. 305	Querist name Mr. Keshav Dayal	Querist city: Noida
Mr. Keshav, asked us:
Rate of entry Tax for iron-steel.
We responded as follows:
Dear Keshav,
In U.P. it is 1 percent of value of goods with effect from May 17. 2013.

Query No. 304	Querist name Mr. Keshav Dayal	Querist city: Noida
Mr. Keshav, asked us:
Rate of entry Tax for iron-steel.
We responded as follows:
Dear Keshav,
In U.P. it is 1 percent of value of goods with effect from May 17. 2013.

Query No. 303	Querist name Mr. MANAN GUPTA	Querist city: NOIDA
Mr. MANAN, asked us:
Thanks you sir for prompt response. Sir, one more clarification needed. We (Noida-dealer) are purchasing steel of Rs. 100 (F.O.R.) from outside UP from M/s ABC ltd. and making sale through transfer of documents to M/s XYZ ltd, (UP dealer) of Rs. 150 (F.O.R.). Form-38 is issued by our customer i.e. XYZ ltd to our supplier i.e. ABC ltd and details are filled (like consignor name and value of goods i.e. Rs. 100)as per invoice raised by ABC ltd. Sir, at what value our customer i.e. XYZ ltd should pay entry tax? at Rs. 100 or Rs. 150?
We responded as follows:
Dear MANAN,
Entry tax is payable on value of goods. The term "value of goods" has been defined in section 2 of the U.P. Tax on Entry of Goods into Local Areas Act, 2007. Please go through it. Value of goods is not the same as purchase price.

Query No. 302	Querist name Mr. MANAN GUPTA	Querist city: NOIDA
Mr. MANAN, asked us:
Sir, We (Noida-dealer) are purchasing steel from outside UP from M/s ABC ltd. and making sale through transfer of documents to M/s XYZ ltd, (UP dealer). Form-38 is issued by our customer i.e. XYZ ltd to our supplier i.e. ABC ltd and details are filled (like consignor name and value of goods)as per invoice raised by ABC ltd. Sir, 1> who is liable to pay entry tax? 2> at what value? 3> how to get credit of entry tax @5%? 4> It our customer i.e. XYZ ltd is ready to pay entry tax, what value he should consider,a) value mentioned by ABC ltd in Form-38 or b)value of invoice raised by us on XYZ ltd.
We responded as follows:
Dear MANAN,
Repeated query. Please see reply to query No. 299.

Query No. 301	Querist name Mr. manan	Querist city: noida
Mr. manan, asked us:
Sir, We (Noida-dealer) are purchasing steel from outside UP from M/s ABC ltd. and making sale through transfer of documents to M/s XYZ ltd, (UP dealer). Form-38 is issued by our customer i.e. XYZ ltd to our supplier i.e. ABC ltd and details are filled (like consignor name and value of goods)as per invoice raised by ABC ltd. Sir, 1> who is liable to pay entry tax? 2> at what value? 3> how to get credit of entry tax @5%? 4> It our customer i.e. XYZ ltd is ready to pay entry tax, what value he should consider,a) value mentioned by ABC ltd in Form-38 or b)value of invoice raised by us on XYZ ltd.
We responded as follows:
Dear manan,
Repeated query. Please see reply to query No. 299.

Query No. 300	Querist name Mr. manan	Querist city: noida
Mr. manan, asked us:
Sir, We (Noida-dealer) are purchasing steel from outside UP from M/s ABC ltd. and making sale through transfer of documents to M/s XYZ ltd, (UP dealer). Form-38 is issued by our customer i.e. XYZ ltd to our supplier i.e. ABC ltd and details are filled (like consignor name and value of goods)as per invoice raised by ABC ltd. Sir, 1> who is liable to pay entry tax? 2> at what value? 3> how to get credit of entry tax @5%? 4> It our customer i.e. XYZ ltd is ready to pay entry tax, what value he should consider,a) value mentioned by ABC ltd in Form-38 or b)value of invoice raised by us on XYZ ltd.
We responded as follows:
Dear manan,
Since Form-38 is being used by your purchaser i.e. M/s XYZ Ltd., he is receiving or bringing goods in the Local Area of U.P.. Therefore, he is liable for payment of Entry Tax. Entry Tax is payable on value of goods. This value is the cost of goods (purchase prices including taxes and all expenses incurred in bringing goods to the local area. This value includes inward freight also. In case of iron-steel, rate of entry tax, with effect from May 17, 2013, has been reduced to 1 percent and with effect from the same date rebate is not available. In your case earlier to May 17, 2013, since your sale will be inter-state sale, you will not be paying vat and therefore, you will not be entitled for claiming rebate.

Query No. 299	Querist name Mr. manan	Querist city: noida
Mr. manan, asked us:
Sir, We (Noida-dealer) are purchasing steel from outside UP from M/s ABC ltd. and making sale through transfer of documents to M/s XYZ ltd, (UP dealer). Form-38 is issued by our customer i.e. XYZ ltd to our supplier i.e. ABC ltd and details are filled (like consignor name and value of goods)as per invoice raised by ABC ltd. Sir, 1> who is liable to pay entry tax? 2> at what value? 3> how to get credit of entry tax @5%? 4> It our customer i.e. XYZ ltd is ready to pay entry tax, what value he should consider,a) value mentioned by ABC ltd in Form-38 or b)value of invoice raised by us on XYZ ltd.
We responded as follows:
Dear manan,
Since Form-38 is being used by your purchaser i.e. M/s XYZ Ltd., he is receiving or bringing goods in the Local Area of U.P.. Therefore, he is liable for payment of Entry Tax. Entry Tax is payable on value of goods. This value is the cost of goods (purchase prices including taxes and all expenses incurred in bringing goods to the local area. This value includes inward freight also. In case of iron-steel, rate of entry tax, with effect from May 17, 2013, has been reduced to 1 percent and with effect from the same date rebate is not available. In your case earlier to May 17, 2013, since your sale will be inter-state sale, you will not be paying vat and therefore, you will not be entitled for claiming rebate.

Query No. 298	Querist name Mr. Vinay Chauhan	Querist city: Noida
Mr. Vinay, asked us:
RSir We have a proprietorship company in Noida How can we get Form 38 online pl guide me Regards
We responded as follows:
Dear Vinay,
This query has repeatedly been posted. Please refer to reply to query no. 293.

Query No. 297	Querist name Mr. Vinay Chauhan	Querist city: Noida
Mr. Vinay, asked us:
RSir We have a proprietorship company in Noida How can we get Form 38 online pl guide me Regards
We responded as follows:
Dear Vinay,
This query has repeatedly been posted. Please refer to reply to query no. 293.

Query No. 296	Querist name Mr. Vinay Chauhan	Querist city: Noida
Mr. Vinay, asked us:
RSir We have a proprietorship company in Noida How can we get Form 38 online? pl guide me Regards
We responded as follows:
Dear Vinay,
This query has repeatedly been posted. Please refer to reply to query no. 293.

Query No. 295	Querist name Mr. Vinay Chauhan	Querist city: Noida
Mr. Vinay, asked us:
RSir We have a proprietorship company in Noida. How can we get Form 38 online? pl guide me. Regards
We responded as follows:
Dear Vinay,
This query has repeatedly been posted. Please refer to reply to query no. 293.

Query No. 294	Querist name Mr. Vinay Chauhan	Querist city: Noida
Mr. Vinay, asked us:
R/Sir, We have a proprietorship company in Noida. How can we get Form 38 online? pl guide me. Regards.
We responded as follows:
Dear Vinay,
Please see reply to your earlier query.

Query No. 293	Querist name Mr. Vinay Chauhan	Querist city: Noida
Mr. Vinay, asked us:
R/Sir, We have a proprietorship company in Noida. How can we get Form 38 online? pl guide me. Regards.
We responded as follows:
Dear Vinay,
Please move an application before your assessing authority for granting permission for downloading Form 38. After you are permitted, you can download Form 38 from web site http://comtax.up.nic.in. This is the official web site of the Department of Commercial Taxes, of Uttar Pradesh.

Query No. 292		Querist city: Agra
Querist asked us:
We are selling our old plant and machinery to dehli, what will be tax rate will applicable upon this transaction and whether we can issue tax invoice.
We responded as follows:
Dear Madame / sir,
If it is an inter-State sale from Agra, U.P. to Delhi and goods are being sold to Delhi dealer against Form C, then rate of tax will be 2 percent. If goods are being sold without Form C, then rate of tax will be the tax rate which would have been applicable if the goods had been sold within U.P. Under U. P. VAT Act, old plant and machinery in running condition attracts tax liability of 14 percent (inclusive of additional tax) and old machinery, if it is unusable, attracts tax rate of 5 percent (inclusive of additional tax. You are required to issue sale invoice.

Query No. 291		Querist city: Agra
Querist asked us:
We are selling our old plant and machinery to dehli, what will be tax rate will applicable upon this transaction and whether we can issue tax invoice.
We responded as follows:
Dear Madame / sir,
If it is an inter-State sale from Agra, U.P. to Delhi and goods are being sold to Delhi dealer against Form C, then rate of tax will be 2 percent. If goods are being sold without Form C, then rate of tax will be the tax rate which would have been applicable if the goods had been sold within U.P. Under U. P. VAT Act, old plant and machinery in running condition attracts tax liability of 14 percent (inclusive of additional tax) and old machinery, if it is unusable, attracts tax rate of 5 percent (inclusive of additional tax. You are required to issue sale invoice.

Query No. 290		Querist city: GURGAON
Querist asked us:
We constructed a couple of cabins in our office [glass paneling, false ceiling, electrical points etc] on a turnkey project basis at a consolidated cost of Rs 8.52 lakh. Are we required to deduct WCT on this payment and if so, at what %age rate of tax?
We responded as follows:
Dear Madame / sir,
Sorry ! we do not have updated provisions of the Haryana VAT Act. Therefore, we cannot give exact answer to your query. In Uttar Pradesh, status is as under: If you are one of the following, then you are liable for making tax deduction at source towards WCT:- 1. the Central Government or any State Government; or 2. any Local Authority; or 3. any Corporation or Undertaking established or constituted by or under a Central Act or State Act; or 4. any Compay; or 5. any Co-operative Society or other Society, Club, Firm or other Association of persons, whether incorporated; or unincorporated; or 6. any University or other Educational Institutions and Training Centers; or 7. any other person engaged in construction of a Building, Shop Apartment, Houses etc., for sale or other commercial purposes (except house and building constructed for personal use). Also, if you are liable for making tax deduction at source and if you are not registered under the U.P. VAT Act, then before making tax deduction, you will have to obtain Tax Deduction Number from the Commercial Tax Department of U.P. You are located at Gurgaon in Haryana, you are advised to consult some officer of Local VAT Office.

Query No. 289	Querist name Mr. Keshav Dayal	Querist city: Noida
Mr. Keshav, asked us:
Is the link working properly?
We responded as follows:
Dear Keshav,
Yes, link is working properly.

Query No. 288	Querist name Miss wrmagnoeph	Querist city: London
Miss wrmagnoeph, asked us:
Query being irrelevant not displayed.
We responded as follows:
Dear wrmagnoeph,
We do not think proper to reply the query.

Query No. 286	Querist name Miss khemvhdehh	Querist city: Brussels
Miss khemvhdehh, asked us:
Query being irrelevant not displayed.
We responded as follows:
Dear khemvhdehh,
We do not think proper to reply the query.

Query No. 285	Querist name Mr. Mukul SInghal	Querist city: Noida
Mr. Mukul, asked us:
Hi, If Company 'A' is giving a civil contract to company 'B' for Rs. 100 and out of which 'B' sub-contract the work of Rs. 20 to Company 'C'. Then what is Position/duty/liabilities of company A/B/C, severely and jointly.
We responded as follows:
Dear Mukul,
You are advised to visit link Works Contact Tax, available on home page of www.taxtalkindia.com. Go through the articles related to works contract. You will find answer to all your queries. In brief, I will like to say that dealer "A" while making payment to "B" will have to deduct as TDS an amount of 4% of Rs.100/-, dealer "B" will have to pay tax on turnover of his goods which have been incorporated in the works, directly or otherwise and dealer "C" will have to pay tax on turnover of his goods which have been incorporated in the works. Dealer "B" is also required to make TDS @4% from gross amount of payments made by him to dealer "C". There is no concept of joint liability. Each dealer is responsible for discharging the liability cast on him.

Query No. 284		Querist city: Lucknow
Querist asked us:
For assesment Fy Jan-08- march 08 , we received credit note for purchase return {purchases of Yr 2007 /Yr 2006-pre vat regime} wherein sale tax @ 9% was refunded by our main supplier. Please advise how can one consider the saltax 2 9% in vat regime of @4% and what part of sale tax refund be treated as RITC @ 9% or @4%? Since there is no range of 9% in vat .
We responded as follows:
Dear Madame / sir,
If goods had have been in opening stock on January 01, 2008 then you would have claimed input tax credit. Amount of reverse input tax credit will be computed at the rate at which you would have computed amount of input tax credit in respect of those goods. If goods had not been in opening stock on January 01, 2008, you would not have claimed benefit of input tax credit and therefore, question of Reverse Input Tax Credit (RITC) would not arise.

Query No. 283	Querist name Mrs. suresh prasad	Querist city: noida
Mrs. suresh, asked us:
my query that WHAT IS UPVAT RATE OF DIGITAL CAMERA AND VIDEO CAMERA /HANDYCAM/CAMCORDER
We responded as follows:
Dear suresh,
Please visit www.taxtalkindia.com. Create you user ID and Password for UPVAT Diary services. It is free. Login with user Id and password created by you. Visit link VAT Rate Search. Use this search facility for getting rate of VAT for any commodity. These rates are without Additional Tax. You will find rate of Additional Tax also there.

Query No. 282	Querist name Mr. MOHD SHAHID	Querist city: BAREILLY
Mr. SHAHID, asked us:
A PERSON HAS LOST HIS ALL BOOKS OF ACCOUNTS AND PURCHASE BILLS SALES BILL,BUT ITC WAS CLAIMED IN REGULAR RETURNS FILED WITHIN TIME. HOW CAN OFFICER CAN DO ASSESSMENT IN ABSENCE OF PUKK RCHASE BILL, HOW HE CAN VERIFY ITC CLAIMED U/S 13 AND UNDER RULE 30.WHAT WILL BE MAXIMUM OUTLOOK IN ASSESSMENT TO IMPOSE TAX. AFFIDAVIT WII BE SUFFICIENT FOR THIS REASON ?
We responded as follows:
Dear SHAHID,
Shahid Ji, You are a learned advocate and therefore, you know better than I. My suggestion is that your client should reconstruct records to the extent it is possible. Certified copies of lists of purchases and sales may be obtained from the Commercial Tax Office. Copy of returns may also be obtained. As you have pointed out Rule 30 of the U.P. VAT Rules, 2008 prescribes the procedure in cases of lost tax invoices. Your client should plead bonafide of data on the basis of previous business history and justification of turnover on that basis and market conditions in the relevant year. I would like to point out that your earlier query is pending for want of facts. If you are interested in getting reply then you should send a fresh query by giving all facts.

Query No. 281	Querist name Mr. MOHD SHAHID	Querist city: BAREILLY
Mr. SHAHID, asked us:
MY CLIENT PURCHASES TIMBER, AND FIRE WOOD IN UTTRAKHAND AND SAME TO BE DESPATCHED TO DELHI.WHAT WILL BE TAX LIABILITY.
We responded as follows:
Dear SHAHID,
For replying the query we need to know following facts: (i) In what capacity, client makes purchase of timber in Uttrakhand whether in his own account or for a principal. (ii) To whom timber is dispatched in Delhi by the client, whether to own depot or branch or to his principal or to a selling agent or to some other person. Please submit complete details of transaction and send a new query.

Query No. 280	Querist name Mr. Himadhu	Querist city: Noida
Mr. Him, asked us:
Under the U.P. VAT Act, till what date assessments for assessment year 2009-2010 can be completed by the Department.
We responded as follows:
Dear Him,
Under the U.P. VAT Act, assessment orders may be completed by May 15, 2013.

Query No. 279	Querist name Mr. Himadhu	Querist city: Noida
Mr. Him, asked us:
Under the U.P. VAT Act, till what date assessments for assessment year 2009-2010 can be completed by the Department.
We responded as follows:
Dear Him,
Under the U.P. VAT Act, assessment orders may be completed by May 15, 2013.

Query No. 278	Querist name Mr. PRAMOD KUMAR	Querist city: GHAZIABAD
Mr. PRAMOD, asked us:
when contractor used welding rod & gas in fabrication. what wct pay in up vat.
We responded as follows:
Dear PRAMOD,
Please see reply to earlier query sent by you.

Query No. 277	Querist name Mr. PRAMOD KUMAR	Querist city: GHAZIABAD
Mr. PRAMOD, asked us:
when contractor used welding rod & gas in fabrication. what wct pay in up vat.
We responded as follows:
Dear PRAMOD,
In cases of works contracts, vat is leviable on only those goods in which transfer of property takes place. There is no sale of consumables used in execution of the contract. Negligible part of welding rod gets transferred and gas is consumed completely in execution of fabrication contract. Therefore, sale of welding rod and gas does not happen in execution of fabrication contract.

Query No. 276	Querist name Mr. MOHD SHAHID	Querist city: BAREILLY
Mr. SHAHID, asked us:
PL. LET ME KNOW DATES ON WHICH RATE ON TIMBER, FURNITURE AND PLYWOOD CHANGED IN 2012.
We responded as follows:
Dear SHAHID,
Rate of Additional Tax has been changed during 2012-2013 under U.P. VAT. Rate of VAT on plywood upto 10-10-2012 has been 4 % and thereafter 12.5 %. On timber and furniture, except can furniture, rate of tax during whole financial year has been 12.5 %. On cane furniture, rate throughout the financial year has been 4 %. Rate of tax on timber throughout the year has been 12.5 percent. You are advised to visit www.taxtalkindia.com. Create your User ID and Password for U.P. VAT Diary Services. Login and visit these services. You will find search facility and many more facilities.

Query No. 275		Querist city: new delhi
Querist asked us:
We want to send our medicine in u.p to a doctor, As per our Drug License we can sell our product director to a doctor, But Doctor's have not TIN or a registered dealar as per UPVAT, How can we send the product and document required, we have TIN of Delhi. Please advise
We responded as follows:
Dear Madame / sir,
You should ask the doctor to send you UPVAT Form 39. If doctor is purchasing medicine for sale, then he should obtain TIN in U.P.

Query No. 274	Querist name Mr. meraj alam	Querist city: kanpur
Mr. meraj , asked us:
sir, we want to know defination of raw tobbaco in up vat act
We responded as follows:
Dear meraj ,
Please refer to answer to previous query.

Query No. 273	Querist name Mr. meraj alam	Querist city: kanpur
Mr. meraj , asked us:
sir, we want to know defination of raw tobbaco in up vat act
We responded as follows:
Dear meraj ,
Raw tobacco has not been defined in the U.P. VAT Act, 2008. As such the term "Raw tobacco" is to be understood in its popular sense in the common parlance.

Query No. 272	Querist name Mr. Raghavendra Dubey	Querist city: VARANASI
Mr. Raqghavendra, asked us:
Can a Registered dealer give Form c to vendor on local purchase of generator for own business use not for trading.
We responded as follows:
Dear Raqghavendra,
A dealer can issue Form C in respect of inter-state purchase of only those goods names of which are mentioned in the Certificate of Registration in Form B issued to him under section 7 (2) of the Central Sales Tax Act, 1956. Form C cannot be issued in respect of any local purchase i.e. a purchase made from within the State.

Query No. 271	Querist name Mr. Raghavendra	Querist city: varanasi
Mr. godowlia, asked us:
what is the time limit of service notice u/s 28(1), (2), (3) for a.y. 2009-10 under up vat act?
We responded as follows:
Dear godowlia,
See reply to previous query.

Query No. 270	Querist name Mr. Raghavendra	Querist city: varanasi
Mr. godowlia, asked us:
what is the time limit of service notice u/s 28(1), (2), (3) for a.y. 2009-10 under up vat act?
We responded as follows:
Dear godowlia,
Notice for hearing of the case and for making any inquiry or examination can be served before passing of assessment order. In U.P. under VAT Act for 2009-2010, assessment can be made on or before May 15, 2013.

Query No. 269	Querist name Mr. Purushottam Lath	Querist city: Gorakhpur
Mr. Purushottam, asked us:
Respected Sir, I received your reply to my querry No. 268 regarding increased value of Invoice than mentioned by VAT authorities, in Road Permit Form 39. Sir. your goodself have mentioned that quantity of Invoice should not vary and Invoice Value in Road Permit Form 39 should be approximately to thr value mentioned by VAT Authority in Form 39. Sir, it is not possible for us owing to Pricw Variation Clause in our P.O. of N.C. Rly.Value of our Invoice is increasing by approximately 3%. So,what should we do,please help.
We responded as follows:
Dear Purushottam,
In my opinion, all other particulars remaining the same, conclusion relating to evasion of tax cannot be drawn by Commercial Tax Authorities or by any other person. Goods cannot be seized where there is no intention of evasion of tax. Moreover that Form 39 is not mandatory where goods are not being purchased for business purpose. By issuing Form 39, the Assessing Authority has certified that goods mentioned in the Form are not meant for business purpose. Also price variation of the extent of 3 % is a nominal variation.

Query No. 268	Querist name Mr. Purushottam Lath	Querist city: Gorakhpur
Mr. Purushottam Lath, asked us:
Many many thanks for replying my querry No. 266. I request you to kindly solve one more problem. A consignee of North Central Railway is not registered with Commercial Tax Deptt. U.P. Hence he has issued us Road Permit Form No. 39 inwhich value and quantity of Batteries indicated by the Commercial Tax Authorities, Allahabad. Batteries are to come from Kolkata. There is clause of Price Variation in our Purchase Order of N.C. Rly.Hence, at the time of despatch of batteries, value has increased. Please let us know whether we can mention the increased Invoice Value and if not, whether we can use the Form 39 by reducing the quantity of our Invoice in such a way that value comes approximate to Road Permit value or lesser than Road Permit value. ...With Best Regards,
We responded as follows:
Dear Purushottam Lath,
Quantity should not vary. Price should be approximately equal to value mentioned in the Form 39.

Query No. 267	Querist name Mr. NITIN SINGH	Querist city: KANPUR
Mr. NITIN, asked us:
Dear Sir, if seller gives discount & provide credit note for Target achievement, should we reverse the ITC for the amount of Credit Note? Example: Original Sale 10000+500(VAT)= 10500 ITC Claimed 500 Credit Note of Rs.1000 received R we responsible to pay TAx on Rs. 1000
We responded as follows:
Dear NITIN,
No, Benefit of Input Tax Credit is not available to selling dealer on such amount of credit note. Therefore, he will have to deposit full amount of tax on earlier sale prices and you will be entitled for claiming Input Tax Credit of such amounts. Therefore, question of reverse input tax credit does not arise.

Query No. 266	Querist name Mr. Purushottam Lath	Querist city: Gorakhpur
Mr. Purushottam, asked us:
Sir, Purchaser, N.E. Rly has issued us a U.P. Road Permit Form 38 with correction of Purchase Order No. and our address in Road Permit.Correction has been made with seal and signature of the Purchaser. Kindly let me know whether it is valid? ... Regards,
We responded as follows:
Dear Purushottam,
Changes have been attested with seal and signature, therefore, it is valid. Otherwise also purchaser is a Central Govt. Department, there is no possibility that purchase will not be entered in Govt. records. Selling dealer is required to make necessary entries relating to sale invoice / challan alongwith date and amount. If quantity is not entered then it should also be mentioned.

Query No. 265	Querist name Mr. sanjeev kumar	Querist city: hapur
Mr. sanjeev, asked us:
Dear sir, My self Sanjeev Kumar would like to get useful information regarding up vat rate of Building material items: Rodi Badarpur Dust Stone dust Cement Iron sir please tell me aslo if we purchase these item from unregistered dealer what is the process for vat payment
We responded as follows:
Dear sanjeev,
In U.P., presently, Iron attracts vat rate of 4 percent, Cement attracts vat rate of 15.5 percent. Badarpur is nothing but mine sand and as such should be covered under “sand” and should be liable to tax @ 5 percent. Rodi is liable to tax @ 5 percent. In my opinion, dust and Stone dust are liable to tax @ 14 percent. These rates are inclusive of Additional Tax. In case of purchases from unregistered dealer of U.P., you should pay tax on purchase price and while computing tax on sale of such goods you should claim input tax credit of the amount paid by you.

Query No. 264		Querist city: Ghaziabad
Querist asked us:
I Have a trading firm and i wnat to know the limit of local area of ghaziabad from where to where.
We responded as follows:
Dear Madame / sir,
Area of Municipal Corporation of Ghaziabad is Local Area for the purpose of Entry Tax. You may visit www.taxtalkindia.com. Under link VAT & Other Laws, visit U.P. Entry Tax. Under definitions you will find definition of Local Area. Local Area is the Area administered by Local Self Government.

Query No. 263	Querist name Mr. V	Querist city: Noida
Mr. Viraj, asked us:
The validity of form 38 Inward in UP is 3 Months. Our material was dispatched from Gujarat before the expiry of the form but while in transit the form expired, but all the documents were correct- bill, gr etc. What is the penalty for the same, if any any procedure to rectify the same
We responded as follows:
Dear Viraj,
If goods have been detained in transit, then you should submit another Form 38 after entering details along with application stating reasons. Commissioner, Commercial Tax U.P. has issued directions to the officers of the Department for acceptance of such new Form 38.

Query No. 262	Querist name Mr. Laxmikanth Gondikar	Querist city: Secunderabad
Mr. Laxmikanth, asked us:
Is "earthwork" under civil contractdefined in any case law by Allahabad High Court or Supreme Court?
We responded as follows:
Dear Laxmikanth,
We do not know any such judgment of High Court or Supreme Court. What I can advise is that you should contact some civil engineer on the subject.

Query No. 261	Querist name Mr. Laxmikanth Gondikar	Querist city: Secunderabad
Mr. Laxmikanth, asked us:
If the Contractee is deducting WCT TDS on Works contract under U.P.,from Contractor, and Contractor who is under composition sub contracts the entire contract to a sub-contractor, then is the contractor also liable to deduct WCT TDS from Sub-Contract under UPVAT?
We responded as follows:
Dear Laxmikanth,
Definitely, It is mandatory for the contractor to make TDS WCT from payments made to sub-contractors. The contractee will not deduct on any amount, of payment to the contractor, on which the contractor has already made deduction and contractor has given intimation of such amount of payment to the contractee.

Query No. 260	Querist name Mr. Mukesh Mudi	Querist city: baroda
Mr. Mukesh, asked us:
our company is exempted from central excise registration, as our output product is also exempt from VAT. i need to know whether any provision that for manufacturing,we should get VAT exclusion from suppliers for input input supply.
We responded as follows:
Dear Mukesh,
Sorry! we do not have updated provisions of VAT Act applicable in the State of Gujarat. Normally, where sale and purchase of manufactured product is generally exempt from levy of VAT, manufacturer is not entitled for claiming Input Tax Credit on purchase of materials used or consumed in manufacture of such goods.

Query No. 259		Querist city: DELHI
Querist asked us:
SIR MY WORK IS GIVES TOILES ON RENT . THESE ARE RETURNABLE AND NOT FOR SALE ALSO MANY OTHER ITEMS FOR EVENTS PURPOSE , ALSO FOR INDIVIDIUALS .SIR FOR ME WHAT TYPE OF FORM IS REQUIRED TO ENTER IN U P FROM DELHI AND IS ANY TAX LIBLITY APPLICALE TO ME . PLEASE CLEAR IT
We responded as follows:
Dear Madame / sir,
Transfer of right to use any goods for any period for valuable consideration (for cash or deferred payment), it comes under the definition of sale of goods for the purpose of State VAT and the Central Sales Tax. You are liable for making payment of tax on rental value treating it sale price. You are expected to use Form 38 while receiving any goods from outside the State of U.P.

Query No. 258	Querist name Mr. ramananda rao	Querist city: kadra
Mr. ramananda, asked us:
Can we split the work contract of supply, installation and commissioning of 500 KVA DG set in to orders for supply and erection as separate orders when the bidder provides tax invoice separately for supply and labour.Does charging WCT on sale value of the works contractor materialvalue where in VAT is alrady included not amount to double taxation and additioal burden on contractee?
We responded as follows:
Dear ramananda,
You can make two contracts, one for supply of D. G. Set and other for erection /installation. Under VAT there is no double taxation. Selling dealer claims benefit of tax paid by him on his purchase from the Government by way of Input Tax Credit. Therefore, he does not realize such amount (amount of tax paid by him to his selling dealer) from his own purchaser. A supplier should tell his purchaser the price which is the sum of net purchase price (purchase price without amount of VAT amount paid by him)+ amount of profit + amount of VAT.

Query No. 257		Querist city: NOIDA
Querist asked us:
We purchase Air Condition from Voltas during the period 01.04.09 to 31.05.10. But they deposit Entry Tax on their Purchase Price and Issue us Form D. My question is whether we are liable to pay entry tax on differce value (Form D amount to our purchase cost) or any law from which we can exit to pay entry tax.
We responded as follows:
Dear Madame / sir,
You are not required to pay any amount of Entry Tax. Section 3-A of the U.P. Tax On Entry of Goods into Local Areas Act, 2007 provides for exemption from payment of Entry Tax. This section runs as follows: "Notwithstanding to the contrary contained in sub-section (1) or sub-section (2), no tax shall be levied on or collected from a dealer or subsequent dealer who brings or causes to be brought into a local area any goods in respect of which tax has been paid in any other local area under any of the said sub-sections and such dealer furnishes before the concerned assessing authority the prescribed declaration in regard thereto within such time as may be prescribed:"

Query No. 256	Querist name Mrs. Nalini	Querist city: Bangalore
Mrs. M, asked us:
I would like to know about Form H. who has to issue For m H to whom, and what is the uses of this.
We responded as follows:
Dear M,
Relating to Form H, there is an article on this web site under link TUTORIALS ON INDIRECT TAXES. Please go through it. Thereafter, you may send your query, if any.

Query No. 255	Querist name Mr. AMIT KUMAR SINGHAL	Querist city: AGRA
Mr. AMIT, asked us:
if dealer cover under compounding scheme UP VAT ACT, what is the tax liability of purchase from un-registered dealer?
We responded as follows:
Dear AMIT,
Personally I am of the view that in respect of composition schemes other than Brick kiln composition scheme, dealer opting composition scheme is liable for payment of tax on purchases of goods where purchase is made from persons other than registered dealers.

Query No. 254	Querist name Mr. Dhanesh	Querist city: Ahmedabad
Mr. Prajapati, asked us:
Kindly help to find out rate of entry tax in up on Diesel generator /genset/dg set and provide notification/ circular from up Govt.
We responded as follows:
Dear Prajapati,
Diesel Generator was held machinery by the Hon,ble Allahabad High Court. Presently, there is no Entry Tax on Machinery. It has been exempted with effect from June 01, 2009.

Query No. 253	Querist name Mr. sandeep khare	Querist city: Lucknow
Mr. sandeep, asked us:
I got issued first time form-38 from the department, at the time of sanctioning (issuing) AC also ordered to submit the security of one lakh within 15 days. What does it mean & why? Do every time i got issued form-38 i have to submit new securities, and what can be the mode(forms) the said securities may be submitted?
We responded as follows:
Dear sandeep,
Assessing authority, for proper realization of tax or for proper use of Form 38 or any other Form, can demand security. An appeal can be filed against the order demanding security. If you feel that amount of security is on higher side, you may file an appeal. It is one time affair. Second time security can be demanded only if it is found that any of the Forms are being misused for evading tax. Security may be furnished as surety bond from two registered dealer or in form of Bank Guarantee or by pledging immovable property. It can also be submitted by submitting fixed deposit passbook. Cash deposit can also be a mode.

Query No. 252	Querist name Mr. HARISH KAPOOR	Querist city: GHAZIABAD
Mr. HARISH, asked us:
Our company provides canteen facilities to staff & workers through Canteen Contractor and the Contractor charged fooding & Tea expenses from us. So please tell me the contractor charged how much VAT on its bills (For Tea and Food seperately). Thanks - HARISH KAPOOR
We responded as follows:
Dear HARISH,
Vat rate of 12.5 percent on prepared tea and food is applicable in U.P. In addition to this liability, Additional Tax @1.5 percent is also payable.

Query No. 251	Querist name Mrs. ASHUTOSH KUMAR	Querist city: BETTIAH
Mrs. ASHUTOSH, asked us:
what is c form .what are the uses of c from the auding point of view
We responded as follows:
Dear ASHUTOSH,
A dealer, who is registered under the Central Sales Tax Act, 1956 for making inter-state purposes of goods mentioned in the certificate of registration after payment of tax at concessional rate of tax, can issue Form C to selling dealer.

Query No. 250	Querist name Mr. M.Sanjay Kumar Rao	Querist city: Hyderabad
Mr. sanjay, asked us:
Sir, can we issue C forms against purchase of capital goods from out side state of Utterpradesh
We responded as follows:
Dear sanjay,
If such goods are covered by Registration Certificate issued to you under the Central Sales Tax Act, 1956 under the clause goods required for use in manufacture or processing of goods for sale, then you issue Form C to the selling dealer.

Query No. 249	Querist name Mr. SK Kapoor	Querist city: Delhi
Mr. SK, asked us:
can we issue Form H for a packing material purcahsed from within the state.
We responded as follows:
Dear SK,
Answer to this query can be given only after study of export order received by you and nature of packing material.

Query No. 248		Querist city: obra
Querist asked us:
Dear Sir , We are power generating unit and received a number of component and other material.But a number of thing are received on the invoice which does not specify the VAT separately. While filling VAT return we also dont show the VAT amount in VAT coloumn . Are we right . Can we demand from supplier to specify the VAT in the invoice separately. what should we do when VAT is not shown separetly in the invoice .What we should show as VAT when we are filling the VAT return ? Kindly clarify the same . Thanks and Regards. Devendra Shula
We responded as follows:
Dear Madame / sir,
If supplier is registered under VAT Law, you need not to worry. In such cases, selling dealer shows sale price inclusive of VAT. You are not liable for showing VAT amount in your return. Only where you have to claim Input Tax Credit, the invoice received by you should show amount of VAT separately.

Query No. 247		Querist city: obra
Querist asked us:
Dear Sir , We are a power generating unit and enter in to a number of agreement for work with contractor .There are some confusion please clarify the same . The contractors in all cases do charges the service tax in their invoice but they dont charge VAT . Now when we pay them we dont deduct WCT as well [ as we are told that WCT is applicable only on Civil Work]. 1.Are we following the correct procedure ? 2.Since VAT is not charged in the invoice- Are we liable for any default of Contractor. 3. Does WCT deduction by contractee[ US ] is applicable only on Civil nature of work contract ? 4. In case of maintanance of Machanical machinary or electrical component is WCT deduction from contractee is required as per law. 5. On maintanance work when- the machinary is taken to the contractor place , he do the repair work - what is the tax liability for us ? 5. If some work contract is done by a person out of Uttar Pradesh - What is the procedure of UP VAT that we need to follow. Kindly clear me confusion. Thanks
We responded as follows:
Dear Madame / sir,
If the contract involves transfer of property in goods, you are liable for deducting 4 percent of the gross amount of payment to the contractor. For this purpose relevant notification is Notification No : KA. NI. -2-763/XI-9(12)/08-U.P.Act-5-2008-Order-(7)-2008 Date : 04th March, 2008. You can find this notification at Official Web Site of the Commercial Tax Department of U.P. under notifications. If contractor is not charging VAT, you are not liable for any action. Provision of making deduction is applicable to all types of works contracts. If contract of maintenance involves incorporation of goods, you are liable for making tax deduction towards VAT (WCT). Where works contract is to be executed outside U.P., VAT law of other State will apply.

Query No. 246	Querist name Mr. sandeep khare	Querist city: Lucknow
Mr. sandeep, asked us:
Dear sir, my case for A.Y 2009-2010 is pending before assessing authority, i have only purchased the sugar from a distributor located in Lucknow and the same sugar has been sold to various retail customers during the whole year. Now, i have pleaded to AO that as i have purchased sugar only locally so, i am not liable for any Entry Tax as i have not imported the sugar into the U.P State. Am i correct in my contention?
We responded as follows:
Dear sandeep,
If your business place and business place of distributor, from whom you have purchased sugar, both are located within the local area of Lucknow Municipal Board and your distributor has delivered sugar to you at Lucknow from its business place within Lucknow Municipal Board then you can say that you have not received or brought any sugar from outside the Local Area of Lucknow Municipal Board and in support of your claim you can submit list of purchases. Local areas are the areas administered by Local Bodies. At Lucknow, there is another local area known as Lucknow Cantonment Board. Suppose a dealer receives any goods from any place within Cantonment Board Area into Lucknow Municipal Board Area or vice-versa, then, for the purpose of Entry Tax Law, dealer cannot claim that he has not brought or received goods from outside the local area.

Query No. 245	Querist name Mr. sandeep khare	Querist city: Lucknow
Mr. sandeep, asked us:
If a dealer has purchased sugar for reselling from a local dealer. Does that dealer liable to pay entry tax as the said dealer is not importing the material (sugar) in the U.P state. Also clarify if any liability under U.P. Vat Act.
We responded as follows:
Dear sandeep,
If the selling dealer and purchasing dealer are located within the same local area and goods are sold within that local area, then Entry Tax is not leviable on the purchasing dealer under the U.P. Tax on Entry of Goods into Local Areas Act, 2007. Under the said Act of Entry Tax, levy of tax depends on entry of goods into a local area independent of the fact that whether such goods have been received from within the State or from outside the State.

Query No. 244		Querist city: meerut
Querist asked us:
sir please tell whether paper napkin comes under paper products category n what is the vat% on it.
We responded as follows:
Dear Madame / sir,
Paper product is an item made of paper. As I know (I may be wrong) that paper napkins are tissue paper and are not produced using paper. In U.P. VAT Act, 2008, for the purpose of rate of tax, no category exists as paper products in any Schedule of the the said Act. Therefore, in my opinion, sale of paper napkins should attract vat rate of 12.5 percent and additional tax at the applicable rate.

Query No. 243	Querist name Mr. sandeep khare	Querist city: Lucknow
Mr. sandeep, asked us:
please tell me whether sugar(unbranded) is exempted from taxation under U.P. VAT Act - 2008.
We responded as follows:
Dear sandeep,
Under U.P. VAT Act, 2008, vat is not leviable on sale of branded or unbranded sugar.

Query No. 242	Querist name Mr. ajay k.sharma	Querist city: noida
Mr. ajay, asked us:
when required form 38 in ex.u.p.purchase.
We responded as follows:
Dear ajay,
In U.P., Form 38 is used, by a dealer registered under the U.P. VAT Act, 2008, as a road permit for bringing or receiving any taxable VAT goods at any place inside the State of U.P. from any place outside the State of U.P. where such goods are meant for business purpose.

Query No. 241		Querist city: Jaipur
Querist asked us:
If any VAT Dealer supply machinery to SEZ on rent then its comes under deemed sales where as any sales made by VAT dealer in UP to SEZ Dealer is exempt under notification issued u/s 7. My Quesry is is there any liability on Machinery given by UP VAT Dealer under DTA to dealer in SEZ(IN UP). Can form D be used for this transaction DTA dealer can ask to SEZ dealer for supply of Machinery on Rent. If VAT is not payable in that case and DTA unit charged VAT in the invoice and paid to VAT department can be refund by the department if SEZ unit will not be paid the VAT Amount. Or if SEZ unit paid the VAT to DTA VAT dealer on renting of Machinery then SEZ dealer can use VAT as a input or apply for VAT Refund. Request you to please advise.
We responded as follows:
Dear Madame / sir,
Exemption, on sale of goods to a Special Economic Zone dealer, is subjected to certain conditions including condition of submission of Declaration Form obtained by the selling dealer from Economic Zone dealer purchasing dealer. Where these conditions are fulfilled, the selling dealer is entitled for claiming exemption on such sale including a sale effected by way of transfer of right to use any goods.

Query No. 240	Querist name Mr. VIVEK KUMAR	Querist city: Meerut
Mr. Vivek, asked us:
Dear Sir, In Entry tax assessment order for AY 2008-09, AO provided the time extention upto 30 September 2012, to submit form D against the purchase of Cement. However assessee could not submit the same till date, becasue he was upset due to death of his own son. Consequently department has issued recovery for the same. Now under the pressure of collection Ameen, assessee has received the form D from the principal company. Now I want to know that where assessee can submit form D or he has to file appeal for delay condone first. Please suggest me proper remedy. Thanks.
We responded as follows:
Dear Vivek,
Since time extended by the assessing authority has expired, assessing authority cannot condone the delay.

Query No. 239		Querist city: Ghaziabad
Querist asked us:
Dear Sir/Madam, I would like to inform you that i need circular on Latest UPVAT from your end. I request you to provide me the same. With Regards, Ajay Kumar Asthana
We responded as follows:
Dear Madame / sir,
Sorry ! We cannot provide you with circular. Please visit Web Site of U.P. Commercial Tax Department. All circulars are displayed on this Site.

Query No. 238	Querist name Mr. Yogendra Singh	Querist city: GHAZIABAD
Mr. Yogendra, asked us:
We are manufacturer of Electrical Panel at Ghaziabad now we are participate in Contraction area.Kindly advice me how add Work contract in our existing Vat Certificate.
We responded as follows:
Dear Yogendra,
There is change in your business. You have to submit UPVAT Form VII and Form XII with application for adding works contract business.

Query No. 237		Querist city: Noida
Querist asked us:
I got work contract for electrical work in noida for 600000 plus service tax and wct How to bill? I mean how to calculate tax? My work contact has material as well as labour
We responded as follows:
Dear Madame / sir,
You have to compute tax on turnover of goods incorporated in the works contract during the billing period. Turnover of goods is to be computed in the manner prescribed in Rule 9 of the U.P. VAT Rules, 2008.

Query No. 236	Querist name Mr. VIVEK KUMAR	Querist city: Meerut
Mr. Vivek, asked us:
Dear Sir, Suppose a builder purchases a land and constructs shops thereon. What would be the vat rate will be applicable on sale of those shops? Thanks.
We responded as follows:
Dear Vivek,
If the builder after the construction of shops has been completed, sale such shops or gives on rent to others, then VAT will not be leviable. Where builder constructs shops for prospective buyers and issues allotment order to such buyers, the transaction will involve levy of VAT.

Query No. 235	Querist name Mr. Vivek Kumar	Querist city: Meerut
Mr. Vivek, asked us:
Dear Sir, What is the amount of advance tax on River Sand to obtain form no. 38. Thanks.
We responded as follows:
Dear Vivek,
Please visit www.taxtalkindia.com. Create User ID and Password for VAT Diary Services and then use Login services. You will find link Departmental Circulars. Please visit category Form Matters. See circulars related to security for issue of Form 38.

Query No. 234		Querist city: MEERUT
Querist asked us:
Dear Sir, I would like to know UP VAT commodity code of Iron door frames and Almirah (Safe). Thanks
We responded as follows:
Dear Madame / sir,
Please refer to reply to your earlier query.

Query No. 233	Querist name Mr. VIVEK SINGH	Querist city: MEERUT
Mr. VIVEK, asked us:
Dear Sir, I would like to know the U.P. VAT commodity code of Iron door frames and Almirah (Safe). Thanks
We responded as follows:
Dear VIVEK,
Please visit www.taxtalkindia.com. Create User ID and Password for VAT Diary Services and then use Login services. You will find link Commodity code search. Enter commodity name and find code.

Query No. 232	Querist name Shrimati Mahadu	Querist city: BHvBzPHWSbs
Shrimati Mahadu, asked us:
The ability to think like that shows you're an epxert
We responded as follows:
Dear Mahadu,
Cannot say.

Query No. 231	Querist name Mrs. Imran	Querist city: sktSKSAmhoFY
Mrs. Imran, asked us:
Umm, are you relaly just giving this info out for nothing?
We responded as follows:
Dear Imran,
Believe me or not.

Query No. 230		Querist city: bangalore
Querist asked us:
In 2005-06 one of our consignment agent issued F-Forms for the first six months quareterly, that is one form for April,May,June and another for July,August,September. is this acceptable or is it mandatory that F-form be issued for every month differently? If not are we liable to pay the difference of tax and interest and penalaty?
We responded as follows:
Dear Madame / sir,
Form F can contain transactions (consignments or stock transfers) of a calendar month. Where Form F has been issued for a quarter, the assessing authority may allow benefit of first calendar month. Remaining transactions may be assessed treating them inter-state sale. We do not have updated provisions relating to levy of interest and penalty under Karnataka VAT Act. Therefore, we are not able to give our comments on interest and penalty. In U. P., interest and penalty is not be leviable because it has been a case of bonafide belief.

Query No. 229		Querist city: Gorakhpur
Querist asked us:
I AM INTO MANUFACTURING OF BICYCLE PARTS. RECENTLY I HAVE STARTED TRADING OF SOME BICYCLE PARTS. NOW MY QUERY IS CAN I ADJUST MY TAX LIABILITY OF TRADING WITH MANUFACTURING ITC ? OR BOTH ITC SHOULD BE SEPRATELY TREATED. NOTE: BOTH MANUFACTURING & TRADING CONDUCTED UNDER SAME FIRM NAME. MOREOVER I DIN'T FIND ANYTHING SPECIFICALLY WRITTEN FOR THIS QUERY. PLS HELP ME OUT
We responded as follows:
Dear Madame / sir,
Input Tax Credit is available to a registered dealer. A dealer may carry on both activities of manufacture and sale of manufactured goods as well as sale of purchased goods. Dealer can adjust amount of ITC available in manufacturing account towards tax payable on sale of trading items and similarly amount of ITC available in trading account may also be adjusted towards liability of tax in manufacturing account. Actually, dealer has to compute total liability of tax at one place and total amount of ITC at other place, irrespective of manufacturing or trading activities. Thereafter, he has to compute net tax payable. In U.P. VAT Act, 2008, section 15 provides the procedure for computing net tax payable.

Query No. 228	Querist name Mrs. MEETU ARYA	Querist city: NOIDA
Mrs. MEETU, asked us:
CAN WCT BE ADJUSTED WITH ITC ON CAPITAL GOODS OR OTHER VAT PURCHASES
We responded as follows:
Dear MEETU,
Please explain what you mean by WCT. Whether you mean amount of tax payable in case of a works contract or you mean amount deducted by contractee from payments made to contractor. Please also explain your status.

Query No. 227	Querist name Mr. SUBHASIS SAHA	Querist city: KOLKATA
Mr. SUBHASIS, asked us:
We got an order for civil works of kolkata for our client at up .what is the rule of wct act when we raise our invoice from our up office to our clint UP
We responded as follows:
Dear SUBHASIS,
Contractee will have to make tax deduction towards works contract tax @ 4 % of the gross amount payable where contractor does not produce direction from his assessing authority for making deduction at some lower rate. Tax payable for any period has to be computed on the turnover determined in accordance with provisions of Rule 9 of the U.P. VAT Rules, 2008. Claim of amount, deducted by contractee, be made in periodical return for the period during which deduction has been made.

Query No. 226		Querist city: Chennai
Querist asked us:
Kindly refer to your answer to query No.222 on applicability of VAT on hiring of boring machine. In this connection, my query is whether the VAT would still be applicable even if the machine is brought by the vendor to the site of the customer and operated by the vendor himself using their own consumables like diesel?
We responded as follows:
Dear Madame / sir,
Please consult some legal expertize with all facts and copy of agreement.

Query No. 225	Querist name Miss ljsbmpbtlz	Querist city: Los Angeles
Miss ljsbmpbtlz, asked us:
Query being irrelevant not displayed.
We responded as follows:
Dear ljsbmpbtlz,
We do not think proper to reply the query.

Query No. 224	Querist name Mr. ravishankar	Querist city: new delhi
Mr. Ravi, asked us:
informations about cst/vat
We responded as follows:
Dear Ravi,
What information do you need?

Query No. 223		Querist city: lucknow
Querist asked us:
is it necessary to buy thru tax invoice even the free gifta and office assests say computers etc and show the purchase of these items in monthly returns? Since they are not for resale , i am not sure if the best way is to have a retail invocie purchase without tin # for such purchases.
We responded as follows:
Dear Madame / sir,
Whether you make purchase of gifts or office assets obtaining Tax Invoice or you make purchase of gifts or office assets obtaining Sale Invoice, you are not entitled for claiming Input Tax Credit in respect of such purchase. Where purchases are to be made in the account of business concern, it will be better if you make purchases using your TIN.

Query No. 222	Querist name Mr. alok goyal	Querist city: agra
Mr. alok, asked us:
private boring machine hired by govt depatment for boring is liable to pay vat or not
We responded as follows:
Dear alok,
Activity is liable to VAT under transfer of right to use any goods under the U.P. VAT Act, 2008 @ 4 +1 i.e. @ 5 percent.

Query No. 221	Querist name Mr. MANAN GUPTA	Querist city: NOIDA
Mr. MANAN, asked us:
Sir, my query is regarding rate of entry tax on cement and steel. 1. from which date entry tax was imposed on Cement? 2. from which date entry tax has abolished on cement? 3. Entry tax imposed @ 1% on steel wef 30-09-2008, it was increases @ 5% wef 29-10-2010 (retrospectively) vide circular dated 31-03-2011. Is it applicable? 4. What is the use of circular dated 10-10-2012 regarding entry tax @ 5% on steel wef 11-10-2012, if it is already 5% wef 29-10-2010?
We responded as follows:
Dear MANAN,
In U.P., Entry Tax on cement was levied with effect from May 16, 2003 and was abolished with effect from February 19, 2010. As it relates to Entry Tax on Iron-steel, amendment made vide notification dated March 31, 2011 was made effective from April 01, 2011. Amendment was not retrospective in nature. While prescribing Entry Tax rate @5% for iron-steel, provision for granting rebate on iron-steel with effective from April 01, 2011 was also made by another notification. Vide notification dated October 10, 2012, made effective from October 11, 2012, "Wire rods" have also been kept in exclusion list of items of iron-speel on which Entry Tax is not leviable. You are advised to consult some professional about the opinion before acting upon my opinion.

Query No. 220		Querist city: agra
Querist asked us:
Dear Sir, In a partnership firm there are three partners . One partner surrendered tin certificate and intimated commercial tax department that business has been closed , without telling other two partners. Department canceled the registration certificate on basis of request letter given along with form IV . Should other two partners send request letter to department asking them to revive registration certificate as business has not closed down . Any other suggestion will be appreciated. Thanks Pratham jain
We responded as follows:
Dear Madame / sir,
U.P. VAT Law does not lay down remedy in your case. Assessing Authority has not been given powers for restoring Registration after it has been cancelled. Also there is no mistake apparent on record in the cancellation order. In my view, you should file appeal against the cancellation order. Appellate Authority may set aside the order and can direct the assessing authority to pass an order after making spot enquiry. Also ensure that whether the partner who has moved application for cancellation was empowered by all partners for moving application for registration.

Query No. 219		Querist city: agra
Querist asked us:
Is Dissolution deed necessary at the time of closure of partnership firm at commercial tax department
We responded as follows:
Dear Madame / sir,
Dissolution of a firm is to be treated as discontinuance of business. But the Department may require the proof of dissolution of firm.

Query No. 218		Querist city: pune
Querist asked us:
Our company received bill from contractor for civil work ( e.g. wall preparation, demolition etc.)and office interior work (Partition , shutters, doors,loose furniture etc),contractor add 8% VAT on total cost of interior are we able to get input tax credit of VAT paid to contractor?
We responded as follows:
Dear Madame / sir,
Normally, Input tax credit is admissible only if purchased goods (1) are re-sold; or (2) are used in manufacture of taxable Vat Goods and such manufactured goods are re-sold within State or in the course of inter-state trade or commerce or in the course of export out of territory of India; or (3) are used in packing of goods to be re-sold as described here against serial No. 2. In your case, these conditions are not fulfilled at your stage. Therefore, you cannot claim input tax credit.

Query No. 217	Querist name Mr. Abhishek kumar	Querist city: Maunath Bhanjan
Mr. Abhishek, asked us:
If we are not using c form then VAT and CST will be same.So in this case which tax we should select if we are going to buy some product and why??? Please Reply....
We responded as follows:
Dear Abhishek,
If you accept counter delivery of goods in the State of purchase(within the State of selling dealer), you will have to pay VAT and if you place order of purchase of goods for delivery in a State other than the State of selling dealer, then you will have to pay Central Sales Tax.

Query No. 216	Querist name Mr. Abhishek kumar	Querist city: Maunath Bhanjan
Mr. Abhishek, asked us:
W hat is work contract text actually???When and why it is used??? what are percentage of taxes which are being used in WCT
We responded as follows:
Dear Abhishek,
I am not aware of work contract text. If it is works contract tax, then in reference to VAT or sales tax, it refers to tax leviable on sale of goods involved in execution of works contract. In U.P. for the purpose of computing works contract tax, tax is computed on sale of various goods in which transfer of property in goods (whether as goods or in some other form) takes place in execution of the contract. For computing tax, rates, which are given in relevant Schedule of U.P. VAT Act, 2008, are applied. For computing WCT, kindly visit U.P. VAT Diary 2012 Services on www.taxtalkindia.com.

Query No. 215		Querist city: NELLORE
Querist asked us:
e1 form Given Turnover Rs.100000/-, c form received Turnover Rs. 120000/-, the above transaction we have received excess amount of form e1. this session excess of turnover taxable OR? NOT?. if any case laws there. kindly send my mail id.
We responded as follows:
Dear Madame / sir,
Sale covered by Form E-1 and Form C is exempt. E-1 represents purchase price and Form C represents sale price. In normal circumstances, sale price is always greater than purchase price. Sale transaction being exempt, excess turnover is not liable to tax. Law in itself is clear. It is not clear that whose email id you require. So, Sorry for not sending any email. If you are first seller and have issued Form E-1 to the purchaser and received Form C from purchaser, then you are liable for payment of tax on sale price. If Form C has been issued by the purchaser for higher amount than actual sale price then you should take back Form C for correction by the purchaser. But if Form C represents actual sale price, then you have to pay tax on sale price mentioned in the Form C. It has nothing to do with amount of Form E-1.

Query No. 214	Querist name Mr. suryaprakash	Querist city: visakhapatnam
Mr. vuritla, asked us:
how to credit works contract tax in vat return
We responded as follows:
Dear vuritla,
Sorry! It is a repeated query.

Query No. 213	Querist name Mr. suryaprakash	Querist city: visakhapatnam
Mr. vuritla, asked us:
how to credit works contract tax in vat return
We responded as follows:
Dear vuritla,
Please explain your query.

Query No. 212	Querist name Mr. VIVEK BARANWAL	Querist city: VARANASI
Mr. VIVEK, asked us:
Dear sir Our sister concern in Tamilnadu has got an purchase order from the customer (Kolkata). Some part of the supplies has to be made from our factory in UP. Our customer is not ready to issue seperate C form for the dispatches from UP instead it will issue C form to Tamilnadu to whom order was placed. Query: Whether we can dispatch the goods, directly to customer in Kolkata against form 'F' issued by our sister unit in Tamilnadu. Please advise us on a) the procedures for dispatching the goods, b)In whom favor LR/GR will be issued by Transporter. I will be highly thankful if any alternative method you will suggest. Regards. Vivek
We responded as follows:
Dear VIVEK,
Sister concern is not the same as your concern. These two are different dealers. Therefore, Kolkata purchaser is right. You also cannot make stock transfer to your sister concern. You may show inter-State sale to your sister concern and book goods to Kolkata. In this case, you will have to receive Form C from your sister concern and you may issue Form E-1 to your sister concern who in turn will receive Form C from Kolkata buyer. If Tamilnadu concern and your concern are one and the same then I think there should be no difficulty. For goods supplied under a single purchase order, as many Form C can be issued as are required. For example if supply of goods is spread over two assessment years, two separate Form C will have to be issued. Likewise if supply is spread over two quarters of the same year, two form C are to be issued. It is to be noticed that where delivery under single contract is spread over two States, both States will make assessment. In my opinion, if separate Form C is issued for each State there is nothing wrong in it. Explanation under section 4 of the Central Sales Tax Act, run as :Explanation.- Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of this sub-section shall apply as if there were separate contracts in respect of the goods at each of such places.

Query No. 211		Querist city: gorakhpur
Querist asked us:
(1) explain refund procedure under up vat (2) who is the authority to grant refund (3) where the assessee will claime or file his refund (4)time limit (5) when assessment order is passed for refund then what procedure is adopted in treasury office(clear the jurisdiction
We responded as follows:
Dear Madame / sir,
Please go through the relevant provisions of the U.P. VAT Act and U.P. VAT Rules. These provisions are available on Departmental Web Site or those can also be seen at www.taxtalkindia.com. Under U.P. VAT, refund is to be given by treasury cheque and cheque is to be sent by the Department in the bank name of which assessee has provided at the time of Registration or thereafter.

Query No. 210	Querist name Mrs. savitri agarwal	Querist city: agra
Mrs. savitri, asked us:
I HAVE PURCHAED A CAR FROM UP BEFORE 2 YRS AND SOLD IN 2011. DEPARTMENT DEMANDING VAT @5%
We responded as follows:
Dear savitri,
If you are a dealer then the Department, in demanding VAT, is justified. But if you had purchased car as an individual for personal use then you are not a dealer and under VAT law only a dealer is liable to pay VAT.

Query No. 209		Querist city: delhi
Querist asked us:
Dear sir, please tell me about vat rate at delhi, uttarpradesh, himachalpradesh & haryana in respect of works contract.& what % between the labour and material in case of interior works & decoraters
We responded as follows:
Dear Madame / sir,
Sorry ! We do not have updated provisions of States other than Uttar Pardesh. You are advised to visit official Web Sites of relevant State.

Query No. 208		Querist city: SOLAPUR
Querist asked us:
If Export Oriented Co. Purchases the Capital Assets, and it uses it for Export Material Manufacturing, whether the co. can purchase the Fixed Assets against Form - H
We responded as follows:
Dear Madame / sir,
No, Against Form H, an exporter can purchase only those goods which are to be exported in compliance of an existing export order. Purchase should be made after the export order has been received by exporter from the foreign buyer. Goods to be purchased should be of description of export order.

Query No. 207		Querist city: Pune
Querist asked us:
I would lilke to know the % of WCT applicable in UP
We responded as follows:
Dear Madame / sir,
In U. P., tax in works contract cases is to be paid on sale price of goods incorporated in a works contract at same rates which are applicable to ordinary sale of such goods. In certain type of contracts, e.g. certain type of civil works and electrification of buildings, composition schemes are available. A contractee has to make Tax Deduction at source @ 4 % of gross amount payable to contractor.

Query No. 206	Querist name Mr. vinay prakash mishra	Querist city: allahabad
Mr. vinay, asked us:
Sir, I want to ask you, If we purchase a product against form 'c'from other state, than what we have to pay VAT on whole amount OR on profit amount only? and what is the rate of tax on item (according to product or fix)?
We responded as follows:
Dear vinay,
You have to pay tax on total sale price at full rate applicable to sale of such goods inside the State. Different rates of tax are applicable to different goods.

Query No. 205	Querist name Mr. sanjay deosaria	Querist city: kolkata
Mr. sanjay, asked us:
Dear Sir, Once again thanks for the reply. It was only yesterday that when I was surfing through internet that I came across a case held at the Madhya Pradesh High Court “Raj Pack Well Ltd. vs Union Of India (Uoi) on 19 September, 1989. In this case it was held that HDPE Fabrics are not considered as textile fabric but are articles of plastic and as such classified in chapter 39 of the Central Excise Act. The Supreme Court as well as CEGAT has accepted the decision. Apart from this there are also several cases relating to HDPE Fabric classifying these under chapter 39 relating to Plastic and articles of Plastic. The case made an interesting study. As such I thing though fabric these are not considered as textile fabrics and is classified separately in the VAT Schedule.
We responded as follows:
Dear sanjay,
Textile is referred to a thing which has taana and vaana. HDPE woven fabric has taana & vaana. Many textiles are made of plastics but only few of them have been excluded from exemption. It is purely for the Government which items to tax or which items not to tax. In my opinion, classification of commodities in the Central Excise Tariff has no relevancy for deciding liability under VAT.

Query No. 204		Querist city: kolkata
Querist asked us:
Dear Sir Keshav Dayalji. Thanks for the response you have posted for my query regarding HDPE Fabrics as "The State Government, in Shedule-I of the U.P. VAT Act, 2008, has exempted textiles of varieties mentioned therein but has excluded those items which are mentioned in any entry of Schedule-II of the same Act. HDPE woven fabric finds place in Schedule-II. Therefore, sale of HDPE woven fabrics is not exempt". but Sir still I want to know that the Government has exempted all varieties of textile and taxed HDPE woven fabrics why?
We responded as follows:
Dear Madame / sir,
State can levy tax on sale or purchase of all goods except newspapers. As a policy the Government has taken decision of levying tax on sale of HDPE woven fabrics. Legally this cannot be challenged.

Query No. 203	Querist name Mr. umashankar gupta	Querist city: vadodara
Mr. umashankar, asked us:
when vat is charged as additional as additional vat. vat@4% additional vat@1%
We responded as follows:
Dear umashankar,
You have to charge additional VAT @1% on the same amount of sale price on which VAT @4% is to be charged. Alternatively, you can charge VAT @5% inclusive of additional VAT.

Query No. 202		Querist city: kolkata
Querist asked us:
Sir my query to you is that HDPE woven fabrics is taxable @4% though it is a textile fabric. why?
We responded as follows:
Dear Madame / sir,
The State Government, in Shedule-I of the U.P. VAT Act, 2008, has exempted textiles of varieties mentioned therein but has excluded those items which are mentioned in any entry of Schedule-II of the same Act. HDPE woven fabric finds place in Schedule-II. Therefore, sale of HDPE woven fabrics is not exempt.

Query No. 201	Querist name Mrs. Sunil Gupta	Querist city: Delhi
Mrs. Sunil, asked us:
What is DVAT value for which VAT is applicable in Interior work contract i.e./ Material part on which VAT will apply and also the what part the Service tax will be applicable
We responded as follows:
Dear Sunil,
Sorry ! we do not have updated provisions of VAT Law applicable in Delhi.

Query No. 200	Querist name Mrs. Vandana Gupta	Querist city: Faridabad Old
Mrs. Vandana, asked us:
Dear Sir Pl tell me when was entry tax started and for which time period it was cancelled and the date again it was started on iron and steel. Can entry tax can be adjusted with the VAT TAX i.e ITC earned
We responded as follows:
Dear Vandana,
Law of Entry Tax in U.P. for the first time came into force with effect from November 01, 1999. After declaration of this law unconstitutional by the Allahabad High Court, new law was passed on September 24, 2007 but new law has been given retrospective effect with effect from November 01, 1999, the date on which earlier law was enforced. Thus in U.P., Law of Entry Tax has been continuously in force with effect from November 01, 1999. Entry Tax cannot be deposited by adjustment from excess amount of VAT Input Tax Credit.

Query No. 199		Querist city: NEW DELHI
Querist asked us:
We have opted for composition scheme for civil construction contract under section 6 of U.P. Vat Act.There is a cap (of 5% of the value of contract executed )on the materials purchases against form 38. My query is that whether this cap of 5% can be calculated on total contract price in advance instead of 5% of the payments recieved so far in respect of the contract. (The later method is being adopted by our A.O. and due to that we are exceeding the limit)
We responded as follows:
Dear Madame / sir,
Material used or transferred during particular assessment (Financial) year is to be taken into account.

Query No. 198	Querist name Mr. Bipin Palande	Querist city: GIDC Vapi
Mr. Bipin, asked us:
Vat & Cst on Excise duty of EPCG Sales
We responded as follows:
Dear Bipin,
Amount of Excise Duty is part of turnover; and VAT and Central Sales Tax is also payable on this part of turnover at the rate which is applicable to sale of the goods on which excise duty is being charged.

Query No. 197	Querist name Mr. SATENDRA SINGH RAWAT	Querist city: NOIDA
Mr. SATENDRA, asked us:
Pls. provide the detail related to WCT in Uttar Pradesh
We responded as follows:
Dear SATENDRA,
Please visit link 'Tutorials on Indirect Taxes' available on home page of this web site. You may also read Rule 9 of the U.P. VAT Rules, 2008. These Rules are available on www.taxtalkindia.com. About TDS WCT please go through section 34 of the U.P. VAT Act, 2008. Composition schemes for WCT are available in cases of certain specified Civil Works Contracts and contracts related to electrical works contract. Schemes are also available on www.taxtalkindia.com.

Query No. 196		Querist city: New Delhi
Querist asked us:
What is the registration fees for trader under up VAT.
We responded as follows:
Dear Madame / sir,
It is Rs. 100/- only.

Query No. 195		Querist city: chennai
Querist asked us:
We are likely to get a civil contract in rajasthan. what is the wct applicable in rajasthan and also, since our company is from tamil nadu to whom do i pay the wct- to rajasthan or tamil nadu
We responded as follows:
Dear Madame / sir,
Regarding your first query, we are sorry to say that we do not have updated VAT Law version of Rajasthan. Therefore, we cannot tell you about WCT applicable in Rajasthan. Regarding your query about payment of WCT, we will like to say that where inter-state sale, of goods for incorporating in the works, will be made from Tamil Nadu, you will have to pay Central Sales Tax in the State of Tamil Nadu and where goods will be procured in Rajasthan for incorporation in the works, you will have to pay WCT in Rajasthan. Where goods will be procured from States other than Rajasthan, liability will depend upon terms and conditions of the contract. It will have to be examined that whether sale in execution of the contract falls in the category of inter-state sales or in the category of local sales within Rajasthan.

Query No. 194	Querist name Mr. ALOK K GARG	Querist city: KASGANJ
Mr. ALOK, asked us:
I AM A MANUFACTURER OF TIN CONTAINERS IN UP AT KASGANJ. IN TIN CONTAINERS MANUFACTURING ELECTROLYTOC SHEETS(TIN SHEETS) USED AS RAW MATERIALS. I HAVE PURCHASED TIN SHEETS FROM DELHI,KANPUR AND KASGANJ. PLEASE DESCRIBE ME THE DIFFERENT TAX SITUATION IN THE FOLLOWING CONDITIONS; 1. I HAVE PURCHASED TIN SHEETS OF RS. 100000/- FROM DELHI AND PAID RS.2000/- AS CST AND PAID RS. 4000/- AS FREIGHT. SUCH GOODS USED IN MANUFACTURING OF CONTAINERS.WHAT IS THE ENTRY TAX LIABILITY IN THIS CASE. CAN I CLAIM REBATE IN ENTRY TAX IN THIS CASE? 2. I HAVE PURCHASED TIN SHEETS OF RS. 100000/- FROM A MANUFACTURER IN KANPUR AND PAID RS. 4000/- AS VAT AND PAID RS. 5000/- AS FREIGHT. SUCH GOODS USED IN MANUFACTURING OF COANTAINERS. WHAT IS THE ENTRY TAX LIABILITY IN THIS CASE. 3. AFTER MANUFACTURING THE CONTAINERS 10% OF CUTTING SCRAP OF TIN SHEETS RESIDUE REMAINS. I SELL IT. PLEASE SUGGESTS ME CAN I CLAIM REBATE OF ENTRY TAX MADE IN THE VAT PAID ON SALE OF SUCH TIN SCRAP. THANK YOU
We responded as follows:
Dear ALOK,
In first case you have to pay entry tax @5% on total value of Tin Sheets amounting to Rs. 106,000/-. In second case you will compute entry tax @5% on total value of Rs.109,000/- and thereafter claim rebate of VAT amounting to Rs.4000/-. In reference to your third query, I would like to say that you cannot claim rebate of amount of tax payayble on scrap. Please consult your Tax Advisor before acting on opinion expressed here.

Query No. 193	Querist name Mr. ALOK KUMAR GARG	Querist city: kasganj
Mr. alok, asked us:
PLEASE SUGGESTS ME THE APPLICABILITY OF UP ENTRY TAX ON ELECTROLYTIC SHEETS (TIN SHEETS).IF SHEETS PURCHASED FROM DELHI WHAT IS THE POSITION IN ENTRY TAX. IF SHEETS PURCHSED FROM MANUFACTURE IN UP WHAT IS THE POSITION IN ENTRY TAX. THANK YOU
We responded as follows:
Dear alok,
Entry tax on Tin sheets is payable @5 percent of value of Tin sheets subject to availability of rebate of amount of VAT paid on Tin sheets in U.P.

Query No. 192		Querist city: gujrat
Querist asked us:
We are a manufacture of Ductile Iron pipe in other state which will be used for water supply project or UP govt and other ancilary civil works including labour, and other non-materials cost. we don't have registation at Up. In VAT on WCT what will be our tax rate for applicable in both case in registation and non-registation. Contract price is more then core value and time is 1yrs. Can we go for "F" formand transfer materials for this contract. kindly suggest
We responded as follows:
Dear Madame / sir,
Rates of tax for registered dealer and unregistered dealer are same. In U.P amount of tax in a works contract is computed on sale value of goods which are incorporated in the works contract. Of the total amount of the contract, a certain percentage (fixed percentage) is allowed as amount of labour and other services and profit thereon. Rest amount is treated as the turnover of goods incorporated in the execution of the contract. Since you will use goods brought from other State, it will be better to get examined whether or not the contract involves inter-state sale of goods in a works contract. If not then after obtaining registration in U.P. under VAT and the Central Sales Tax Act, you can obtain Form F.

Query No. 191	Querist name Mr. kishore shanker	Querist city: hyderabad
Mr. kishore, asked us:
is FORM C and WAY BILL are same. ?
We responded as follows:
Dear kishore,
No, Form C is used for making inter-state purchase of goods for availing concession in central sales tax whereas way bill accompanies goods during their journey from place of seller to the place of the buyer. One may call it road permit.

Query No. 190	Querist name Mr. Ranvijay kumar	Querist city: Noida
Mr. Ranvijay, asked us:
dear sir/madam I have made inter state purchase on 28 march 2012. but recd the goods on 8th april 2012. when I should book purchase. In Which quarter I should issue c form
We responded as follows:
Dear Ranvijay,
Form C is to be issued on the basis of date of invoice. In my opinion purchase should be shown in the month of March unless it has been a conditional purchase and date of completion of condition falls after end of March.

Query No. 189	Querist name Shri MANOJ KUMAR AGARWAL	Querist city: MEERUT
Shri MANOJ, asked us:
what is the difference between Value Added Tax $ Work Contract Tax under Uttar Pradesh Value Added Tax Act
We responded as follows:
Dear MANOJ,
Where tax on sale of any goods is levied on value addition in turnover of goods, the tax is called Value Added Tax. Under input tax credit system of VAT, tax payable is computed as the diiference of amount of tax on sale price and amount of tax paid on purchase price. Work Contract Tax is referred to as the amount of tax payable on turnover (aggregate of sale prices) of goods in which property is transferred in execution of a works contract. In cases of works contract too, under VAT system, amount of tax payable is computed as amount of VAT is computed.

Query No. 188	Querist name Mr. HARISH KAPOOR	Querist city: GHAZIABAD
Mr. HARISH, asked us:
Dear Sir, As per our general practice If we transport any material less than Rs.5000/- on own vehicle we are not used Form-38 and we used Form-38 in every case when we tranport goods through Transporter. Sir my question is that, under UP Vat is there any circular / notification / rules, if yes then please provide.
We responded as follows:
Dear HARISH,
Sub-sections (1) & (2) of section 81 of the U.P. VAT Act, 2008 run as follows: THE UTTAR PRADESH VALUE ADDED TAX ACT, 2008 81. Repeal and saving. (1) The Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948) (hereinafter in this section referred to as the repealed enactment) is hereby repealed. (2) Notwithstanding such repeal, - (a) any notification, rule, regulation, order or notice issued, or any appointment or declaration made, or confiscation made, or any penalty or fine imposed, any forfeiture, cancellation or any other thing done or any action taken under the repealed enactment, and in force immediately before such commencement shall, so far as it is not inconsistent with the provisions of this Act, be deemed to have been issued, made granted, done or taken under the corresponding provisions of this Act. (b) any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Act, shall not be affected and manufacturing units or the units enjoying facility of moratorium for payment of tax under section 8 (2-A) of the said Act shall be entitled to claim moratorium for payment of tax in accordance with provisions of section 42. Notification & circular regarding use of Form of declaration for import of goods issued under Trade Tax are applicable to use of Form 38 under the U.P. VAT Act, 2008.

Query No. 187	Querist name Mr. Abhishek kumar	Querist city: Maunath Bhanjan
Mr. Abhishek, asked us:
Every registered dealers those who are doing inter state purchases are supposed to Provide C- form ? what are the conditions of giving c-form? please reply
We responded as follows:
Dear Abhishek,
Form C can be issued in respect of inter-state purchase of only those goods names of which are mentioned on Registration Certificate obtained by the dealer under sub-section (2) of section 7 of the Central Sales Tax Act, 1956. Therefore, before making inter-state purchase against Form C, the purchasing dealer must ensure that name of such goods is entered on his registration Certificate.

Query No. 186	Querist name Mr. suresh	Querist city: Chennai
Mr. Kolluru, asked us:
Sir, I want to know whether,works contracts of Government undertaken by contractors in UP is liable to Vat????
We responded as follows:
Dear Kolluru,
Yes, Contractors are aliable for payment of VAT in cases of works contracts awarded by the Government.

Query No. 185	Querist name Mr. HARISH KAPOOR	Querist city: GHAZIABAD
Mr. HARISH, asked us:
Dear Sir, I have put query and get following answer, please confirm is there any notification regarding this : Query Text: Mr. HARISH KAPOOR wrote to us on 6/6/2012 12:00:00 AM as follows: Dear Sir, please clarify VAT applicability on job work on processing of fabric (like colour / dyeing / bleaching work on greigh fabric). Reply Text: We responded as follows: Dear HARISH, Job work in which some material passes in any form to the owner of goods, falls under the category of works contract. In process of dyeing and colouring of fabric dye or colour gets embedded in the fabric. Therefore, in my view, process of dyeing or colouring will fall in category of works contrct. In this case there will be sale of dye or colour and such sale will attract liability of VAT. With regards from: Keshav Dayal Ex Member Tribunal, U. P. Trade Tax
We responded as follows:
Dear HARISH,
There is no such notification. This is the basic law. You are advised to go through Section 2 of the U.P. VAT Act, 2008. This section provides definition of words, terms and expressions for the purpose of the Act. Please go through definitions of words "sale", "dealer", "business", etc. Specially, please see clause related to works contract.

Query No. 184	Querist name Mr. HARISH KAPOOR	Querist city: GHAZIABAD
Mr. HARISH, asked us:
Dear Sir, please clarify VAT applicability on job work on processing of fabric (like colour / dyeing / bleaching work on greigh fabric).
We responded as follows:
Dear HARISH,
Job work in which some material passes in any form to the owner of goods, falls under the category of works contract. In process of dyeing and colouring of fabric dye or colour gets embedded in the fabric. Therefore, in my view, process of dyeing or colouring will fall in category of works contrct. In this case there will be sale of dye or colour and such sale will attract liability of VAT.

Query No. 183	Querist name Miss nephrpgqoq	Querist city: London
Miss nephrpgqoq, asked us:
Query being irrelevant not displayed.
We responded as follows:
Dear nephrpgqoq,
We do not think proper to reply the query.

Query No. 182	Querist name Miss mfbdpeapbp	Querist city: Brussels
Miss mfbdpeapbp, asked us:
Query being irrelevant not displayed.
We responded as follows:
Dear mfbdpeapbp,
We do not think proper to reply the query.

Query No. 181	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, Thanks for your previous reply regarding MRP ( inclusive of all taxes ) Now suppose we print on our brand MRP Rs. 150/- ( inclusive of all taxes) and we sell this item to our distributor for Rs. 120/- then how tax will be calculated and now how is tax inclusive Regards
We responded as follows:
Dear Nadeem,
Sorry ! I have told you method. Remember that your distributor will need Tax Invoice. In that case you will have to mention sale price and VAT amount separately. Only retailer can make sale inclusive of VAT.

Query No. 180	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, Thanks for your previous reply Actualy i want to know what mean of "MRP ( inclusive of all taxes )" generally printed on consumer goods How a all taxes be payed and what is meant by this Regards, Nadeem Khan
We responded as follows:
Dear Nadeem,
MRP is used for "Maximum Retail Price". Whereever law provides for separating amount of any tax where price is inclusive of tax, formula "Amount of tax payable=(Rate of tax X aggregate of sale prices) / ( 100 + Rate of tax)" can be used. But where law does not provide, for making payment of tax to the Government, tax is to be computed on MRP. Luckily, U.P. VAT & the Central Sales Tax both have provision for separating amount of tax where price is inclusive of tax.

Query No. 179	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, Thanks for your reply that if we sell one product for Rs. 90/- to our distributor and product having printed MRP Rs. 100/- then we have to pay VAT 13.5% of Rs. 90/- And suppose the dealer is sell the same product to retailer for RS. 95/- then he has to pay VAT 13.5% of Rs. 95/- Now question is retailer sell the same product on printed MRP prices Rs. 100/- the is there any amount of vat retailer has to pay Also inform what taxes will be applicable in case of MRP ( inclusive of all taxes) Regards, Nadeem Khan
We responded as follows:
Dear Nadeem,
Under VAT, tax is payable on sale price of any goods sold by a dealer with facility of input tax credit of the amount paid by the selling dealer according to Tax Invoice received by him in respect of purchase. It seems that you are quite new to VAT. You are advised to go through the U.P. VAT Act provisions. You can have these provisions on relevant web site. One such Web Site is www.taxtalkindia.com. On this site visit link VAT and Other Laws. See specially sections 3, 4, 5, 13, 14, and 15 of the VAT Act, 2008.

Query No. 178		Querist city: KANPUR
Querist asked us:
first of thanks for help inthe query, in local canteen vendon charges us VAt on total bill, while we are using the Prepare Tea, Snaks, some time prepare food, some items which are sealed like chips , coke, its ok but what the status of the VAT on the remain items.
We responded as follows:
Dear Madame / sir,
Sale of all items referred to by you are taxable @13.5 percent in U.P.

Query No. 177	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, Thanks for your early responces regarding VAT percentage on leather goods As we are going to register our trademark in leather goods so we sell our products through MRP printed prices Suppose we sell one item printed MRP is Rs. 100/- and we have sell this item to our distributor for Rs. 90/- then how Vat and CST will be calculated ? or what amount of TAX we have to pay for this sale? Regards, Nadeem Khan
We responded as follows:
Dear Nadeem,
13.5 percent of Rs. 90/-.

Query No. 176	Querist name Mr. Ram Kumar Tiwari	Querist city: noida
Mr. ramkumar, asked us:
what is H form? whome it may issued or recd? is it quartly issued or no? can it given to up to up dealer or not?
We responded as follows:
Dear ramkumar,
Where an exporter makes purchase of goods for fulfilling a pending export order, he can purchase such goods without payment of tax if he issues Form H to sellintg dealer. It is issued in reference to export order. It can be submitted to assessing authority by selling dealer upto the time of assessment.

Query No. 175	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, Noted your response that there will be 13.5% Vat applicable on our upcoming brand ( Trade mark ) in leather products. Kindly inform if we sell our leather products without registering trademark then what percentage of Vat and CST is applicable kindly inform latest revised percentage Regards, Nadeem Khan
We responded as follows:
Dear Nadeem,
Under VAT, tax is levied on sale or purchase of goods. Whether such goods are sold under trademark or without any trademark is immaterial for the purpopse of VAT.

Query No. 174	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, We are leather product manufacturers and suppliers and now we are going to register trademark to sell our product Could you please advise what percentage of VAT , CST or Service tax will be applicable on our upcoming brand Awaiting for the same Regards Nadeem Khan
We responded as follows:
Dear Nadeem,
In U.P., rate of VAT will be 13.5% inclusive of Additional Tax on sale of leather products. Under Central Sales Tax, inter-state sale against Form C will be liable to tax @ 2 % and inter-state sale without Form C will liable to tax @ 13.5 percent. Sorry ! we do not deal in Service Tax.

Query No. 173	Querist name Mr. Amit Kumar	Querist city: Meerut
Mr. Amit, asked us:
Sir/Madam, We had to issue Form 'F' to the party on monthly basis.we were told that stock t/f received by us less stock transfered(returned) by us = form F value to be issued.But during the month of Jan.,Feb. & March we had not received the goods but had returned the goods. now what shall we do while issuing the forms. Thanks
We responded as follows:
Dear Amit,
You have to issue Form F in respect of total consignments of goods received by you as stock transfer and you have to obtain Form F in respect of goods returned. Form F is not to be issued or received for difference of receipt and transfer or vice versa.

Query No. 172	Querist name Mrs. Mohan Bisht	Querist city: Delhi
Mrs. Mohan, asked us:
Dear sir, I want to know that what are the provision in UP Trade tax for composition of Electrical contract. my querries are as follow. 1. if we can not issue a invoice with mentioning tax amount how these liability will appear in books of accounts. 2. can you pleas provide complet analysis of circular issued by commissioner. Regards Mohan
We responded as follows:
Dear Mohan,
Say composition money is payable @4%. In this case, if you receive Rs. 100, you will have to pay Rs. 4 as composition money. You will show sale turnover of Rs. 96 and tax liability of Rs. 4. you will compute your turnover by using {(100-rate of composition)* total receipt}/100 and amount of composition by using (rate of composition * total receipt)/100. Regarding your second query, we are sorry to say that we cannot do it here.

Query No. 171		Querist city: Ghaziabad
Querist asked us:
Pls refer query 169, After each process it becomes a sub assembly and no more a plate as such. Your advise requested on VAT requirements to be met for sending and receiving the material back and if Entry tax needs to be paid. Regards and Thanks
We responded as follows:
Dear Madame / sir,
After processing it no longer remains iron plate. Therefore, it will not attract levy of Entry Tax. Under the Central Sales Tax, you will require Form F from Faridabad dealer and while bringing it back you will have to use Form XXXVIII. Since you will receive iron plate from outside the State, you will not be entitled for claiming input tax credit.

Query No. 170	Querist name Mrs. vaibhav	Querist city: hapur
Mrs. vaibhav, asked us:
dear sir, as a manufacture ITC Clem on which product . plz give me the rule about this. thanks
We responded as follows:
Dear vaibhav,
Section 13 of the U.P. VAT Act, 2008 relates to claim of Input Tax Credit in cases of manufacturers and traders both. Rules 21 to 31 relate to Input Tax Credit and Reverse Input Tax Credit. For text of section 13 and Rules can be visited by logging on www.taxtalkindia.com Home page link VAT & Other Laws.

Query No. 169		Querist city: Ghaziabad
Querist asked us:
We are registered under UPVAT. We purchased Steel plate from Delhi against C Form. Entry Tax was deposited for same. After carrying out work on Steel plate we need to send same to Faridabad for further Jobwork and return to us. What are the requirements under CST/VAT/Entry tax rules which we must fulfil? Any Forms to be issued/received. Will we have to pay Entry Tax again when material is brought back from Faridabad?
We responded as follows:
Dear Madame / sir,
Will they remain steel plate throughout or some new goods will emerge after each process?

Query No. 168	Querist name Mr. VAIBHAV SHARMA	Querist city: HAPUR
Mr. VAIBHAC, asked us:
dear sir, what is the meaning of Local Area in Entry Tax.
We responded as follows:
Dear VAIBHAC,
Every area of the State which is Governed by Local Body or Local Authority. Town Area, Municipal Area, Nagar Maha Palika, Cantonment Board, Zila Panchayat, Noida Authority, Greater Noida Authority, etc. are local areas for the purpose of Entry Tax.

Query No. 167	Querist name Mr. Abhishek kumar	Querist city: Maunath Bhanjan
Mr. Abhishek, asked us:
What is additional tax? why and when we are using additional tax?
We responded as follows:
Dear Abhishek,
Additional Tax is a genreal term. This tax is levied in addition to any tax already levied.

Query No. 166	Querist name Mr. Abhishek kumar	Querist city: Maunath Bhanjan
Mr. Abhishek, asked us:
Is there any difference between form 31 and form 38? If i am correct, form 38 had replaced form 31 and now form 31 are not being used.
We responded as follows:
Dear Abhishek,
Under U.P. Sales Tax Act, 1948 it was Form 31 and thereafter, under the U.P. Trade Tax Act, 1948 it was Form of Declaration for Import. Since the date of introduction of VAT in U.P., Form 38 is meant for the purpose for which earlier Form 31 and Form of Declaration for Import were meant.

Query No. 165	Querist name Mr. Abhishek kumar	Querist city: Maunath Bhanjan
Mr. Abhishek, asked us:
Is there any difference between entry tax and octroi? if yes, then please explain me the difference.as of 23rd april 2012, entry tax is still valid in UP and delhi?
We responded as follows:
Dear Abhishek,
Octroi and Entry Tax, both are levied on entry of goods into a local area for use, consumption or sale therein. Name is immaterial. What is material is the tax event. In U. P. it is in operation. In Delhi most prabably it is toll tax.

Query No. 164	Querist name Miss Pragati	Querist city: Noida
Miss Pragati, asked us:
Sir, We have received show cause notice when we submit a reply the assistant commissioner impose a penalty on a point which was not asked in show cause notice . Suppose, Penalty imposed on payment of entry tax but in show cause notice served to us there is no details required for entry tax payable by the dealer. Please tell whether the penalty imposed on us is under the upvat act
We responded as follows:
Dear Pragati,
Penatly cannot be imposed without issuing show cause notice. Penalty notice contains offence or wrong comitted. Where notice does not state offence for which peanty is to be levied, penalty levied is illegal. Under the U.P. Entry Tax Law certain provisions of U.P. VAT have been adopted but penalty order is to be passed under the U.P. Entry Tax Law read with relevant provision of the U.P. VAT Act.

Query No. 163		Querist city: firozabad
Querist asked us:
hello i want to know does a saree shop selling sarees & lehangas comes under VAT and if yes then what's the procedure for that plz reply as soon as possible
We responded as follows:
Dear Madame / sir,
Readymade garments and textile madeups are liable to tax under VAT. Such dealer is required to obtain VAT Registration and to file returns of turnover and tax. For procedure, please contact VAT office or some advocate or Chartered Accountant who deals in VAT.

Query No. 162	Querist name Mr. C B Jayarajan	Querist city: Chhindwara
Mr. Jayarajan, asked us:
Please confirm WCT to be calculted on service content + FIM (free issue material) cost.
We responded as follows:
Dear Jayarajan,
Where cost of material is part of the contract value and price of material is deducted by contractee from payment being made to the contractor, it is a case of simple sale of material by the contractee to contractor. Where cost of material is not part of contract value and contractee also does not realize cost of material from contractor separately, contractee remains owner of material all the time and material is provided only for incorporation in the works, there is no sale of material and tax is not payable on any assumed value of material. coming to your query, if only services are being rendered by the contractor and the contract does not involve transfer of property in any goods, then tax is not payable on any sale of material. Such contract is a pure contract of services only.

Query No. 161	Querist name Mr. rohit rathor	Querist city: delhi
Mr. rohit, asked us:
1. wct is only applicable for govt contracts ? 2. Is their a printer who have sale their wedding card ( shadi card ) along with printing on it , than 20% abatement on total bill price is consider & compute dvat 5% ? 3. registration in dvat for wct & trading a dealer can apply for both ?
We responded as follows:
Dear rohit,
WCT in its abbreviated form is works contract tax, i.e. tax leviable on deemed sale of goods in cases of works contracts. It is applicable to all dealers who are liable for payment of tax. Your query is based on DVAT. We do not have updated provisions of DVAT Act. In my opinion, under DVAT if dealer is registered under DVAT for trading, he is not required to obtain registration for cases of works contract separately.

Query No. 160	Querist name Mr. manish gupta	Querist city: rae bareli
Mr. msnish, asked us:
is tax paid on factory building is permissible for itc on capital goods
We responded as follows:
Dear msnish,
Sorry! your query is not clear. Please make detailed query stating your status like contractor or developer or contractee, etc.

Query No. 159		Querist city: Chennai
Querist asked us:
For making interstate sales of old (used) machinery from our factory in UP to a customer in Delhi, is it necessary to include the said item in our Registration Certificate? If so, whether such addition of new commodity can be done after making the sales? Please enlighten the procedure in this regard.
We responded as follows:
Dear Madame / sir,
Central Sales Tax Registration is of two types. First type of registration is meant for dealers who make inter-state sales of goods. Other type of registration is required for making inter-state purchase against Form C. First type of registration does not require mentioning of goods which may be sold but second type of registration requires that before goods are purchased against Form C, the dealer should be registered for such goods. Both kinds of Registration certificates are issued on the same single Form. First registration certificate is issued under sub-section (1) of section 7 of the CST Act and second type of registration is issued under sub-section (2) of section 7 of the Central Sales Tax Act, 1956. So, if you are registered under section 7(1) for making sale of any goods, you are not required for making request for addition of any other goods. But when you intend to make inter-state purchase of any goods which are not mentioned in your registration certificate, then before making purchase, you are required to present application to your assessing authority for adding such new goods in your registration certificate.

Query No. 158	Querist name Mr. Deepak Kumar	Querist city: Bareilly
Mr. Deepak , asked us:
Sir Kindly Tell me about Entry Tax in UP. Please provide the list of items covered under entry tax. is industrial cable is covered under entry tax if yes then please tell me the rate of entry tax
We responded as follows:
Dear Deepak ,
Please visit www.taxtalkindia.com or http://comtax.up.nic.in for items on which Entry Tax is leviable in U.P. With effect from 01-06-2009, cables are not liable for entry tax. Earlier to 01-06-2009, all kinds of cables had been liable to Entry Tax.

Query No. 157	Querist name Shri Shripal Kavad	Querist city: mumbai
Shri shripal, asked us:
is it possible for backdated registration of CST ? pls give me your opinion and some case laws related to aforesaid query for presenting my case. please provide as soon as possible. Its urgent.
We responded as follows:
Dear shripal,
No, Registration Certificate under the Central Sales Tax Act cannot be issued to be effective from an earlier date than the date of presenting application. No law is required on this point. Law itself is clear on the issue.

Query No. 156	Querist name Mr. Narendra	Querist city: Chittoor
Mr. Challa, asked us:
Sir, During 2008-09 Purchased Packing Material against H form condition, the same not exported, Now, 2011-12 We can issue C form and paying CST to Supplier ?
We responded as follows:
Dear Challa,
Please read the certificates printed on Form H. You have to give intimation to the assessing authority of the selling dealer.

Query No. 155		Querist city: Agra
Querist asked us:
Please tel me rate of tax Cashew Husk (Kaju ka chilka)
We responded as follows:
Dear Madame / sir,
Please give uses of cashew husk and text of Vat Schedule entry relating to chuni, chilka, applicable in your State.

Query No. 154	Querist name Mr. Sharad Tripathi	Querist city: Lucknow
Mr. Sharad, asked us:
CONTRACTOR IS ENGAGED IN CIVIL WORKS CONTRACT AND TDS IS DEDUCTED ON PAYMENT BY CONTRACTEE. Dealer HAS OPTED COMPOUNDING SCHEME AND ORDER U/S 34 FOR TDS @ 2% HAS BEEN PASSED BY ASSESSING AUTHORITY,ALTHOUGH TDS @ 4% HAVE BEEN DEDUCTED ON SOME PART OF PAYMENT MADE BEFORE THE COMPOUNDING SCHEME.NOW THE ASSESSING AUTHORITY HAVE REFUSED TO GIVE REFUND CLAIMED IN ANNUAL RETURN SAYING ASSESSEE HAD TRANSFERRED THE RIGHT OF TAX TO CONTRACTEE AND LAW OF UNJUSTENRICHMENT IS APPLICABLE.MY QUERY IS WHETHER THE TDS IS AN OBLIGATION OF CONTRACTEE UNDER THE LAW OR IT IS THE TAX PAID BY ASSESSEE.IF IT IS AN OBLIGATION THEN TDS SHOULD BE TREATED AS TAX AFTER ASSESSMENT OR NOT?Law of unjustenrichment appliied in the case of mafatlal vs union of iNDIA is applicable on compounding scheme opted contractors or not .give case citation etc. and suggest how to claim and get refund amount deducted in excess.
We responded as follows:
Dear Sharad,
If amount of tax has not been realised separately, it cannot be said that tax burden has been passed on the purchaser. Contractee is a consumer. If tax has been realized and if the assessing authority has detained such amount of tax or part of it then the contractee from whom such amount has been realized can claim refund.

Query No. 153		Querist city: Tumkur, Karnataka
Querist asked us:
Dear sir, We are one of the leading watch case manufacturers in India. Ours is excisable and KVAT Regisered unit. Recently we received an enquiry that, we have to supply cases to Customer against Form-H. Enquired customer is in Bangalore and not a EOU unit, only KVAT registered manufacturer. He will give us Form-H against our supplies and export it to some other country. Supplies against Form-H is new to us. Kindly advise us what are procedures while making invoice i.e., Excise Duty, KVAT to be mentioned in our invoice. And what are procedures to be followed in view of Central Excise and Sales Tax before invocing and after invoicing. Awaiting your reply. Regards, IL Shanmukh CENTURA WATCH CASES PVT.LTD., No.23-24, Sathyamangala Industrial Area, TUMKUR-572 104
We responded as follows:
Dear Madame / sir,
An exporter, in order to fulfill existing export order, make purchase of goods against Form H wthout payment of VAT or Central Sales Tax. Goods should have a link with export order. In Form H, the purchasing dealer has to mention export order no. and date of export order received by him from foreign buyer. Such date should be a date prior to the date on which exporter has placed purchase order with the supplier. No VAT or central sales tax is to be charged.

Query No. 152	Querist name Mr. ASHISH	Querist city: KANPUR
Mr. ASHISH, asked us:
Sir, We have purchased some packaging product from a company in uttarkhand.The invoice has been billed at 4% cst.The invoice says input tax credit available.Kindly let us know the rule under which we can claim the credit Yours Faithfully, Ashish
We responded as follows:
Dear ASHISH,
Tax paid to Uttrakhand Government as CST cannot be refunded as ITC by any other State Government. ITC applies to purchase of goods in the same State.

Query No. 151	Querist name Mr. Rakesh Singh	Querist city: Lucknow
Mr. Rakesh, asked us:
WE are manufacturing and marketing the fertilizers products. Raw material purches by us is taxable under 4% VAT and the finshed goods produced by us is exempted in VAT. How can we claim the ITC.
We responded as follows:
Dear Rakesh,
If you make sale of fertilizers in the course of export of goods out of the territory of India, you can claim ITC otherwise not.

Query No. 150		Querist city: Ghaziabad
Querist asked us:
As per section 4(1) entry tax is levied on scheduled goods brought into local area for consumption, use or sale therein. Further as per sub-section (6), no tax will be levied if the goods are sold for the purpose of being taken out. This is further supported by section 5 as well. A company has brought paper belonging of third party from outside UP for job work. The company print books, catelogue, brochure etc. from the paper. Can it be said that the paper is not meant for use or consumption for the company and the paper is sold to party outside that local area. And thus the transaction would be covered by exemption given in section 4(6). Or is it case of change of form of goods e.g. what is sold by company is goods and not paper. And thus exemption would not apply and entry tax would be levied on value of such paper brought into local area. Please clarify.
We responded as follows:
Dear Madame / sir,
Paper and books are different goods. Paper is used or consumed in manufacture of books. The transaction will be liable to Entry Tax.

Query No. 149		Querist city: ahmedabad
Querist asked us:
Dear Sir, I have a query regarding the Entry tax in U.P. the issue is as under:- A contractor received some free issue material from its employer has sent the same to other state for some job work, while returning back the material the required form 38, were not properly filled up. the department has levied a penalty , whether the department is justified in the same or what remedies are available. Please suggest Regards, Rajnish Goyal
We responded as follows:
Dear Madame / sir,
If penalty order has been passed then you should file appeal against the penalty order before Additional Commissioner (Appeals) Commercial Tax. There you should prove that material had been sent from U.P. and same was being received back. There had not been any intention of evasion of tax. Moreover that mistake if any then it had been on part of the person who had not completed Form 38.

Query No. 148	Querist name Mr. Samik Kr.Chaudhuri	Querist city: Agartala
Mr. Samik, asked us:
Validity of FORM XXXVIII
We responded as follows:
Dear Samik,
Date of validity of Form XXXVIII means the date till the form can be used.

Query No. 147	Querist name Mrs. Ashish Shivhare	Querist city: Agra
Mrs. Ashish, asked us:
Sir, Please tel me What is the Rate of Tax is Mobile Recharge Cupans & Tata Sky Cupans
We responded as follows:
Dear Ashish,
Service charges are collected through coupons. Any goods are not sold through mobile or Tata Sky coupons. In my view, VAT is not leviable on sale of coupons.

Query No. 146		Querist city: Ghaziabad
Querist asked us:
Query being irrelevant not displayed.
We responded as follows:
Dear Madame / sir,
We do not think proper to reply the query.

Query No. 145	Querist name Mr. Amit Kumar	Querist city: Meerut
Mr. Amit, asked us:
Sir, really very thank for my query no.FQ143, Sir now i want to know that can any body (dealer) may compell another dealer legally to get their form C or F (i.e. form meant for tax relaxation.)against sale/transfer made earlier.Or in other words if any dealer is refusing to issue form F/C than, Can another party may approach assesing authority of the purchaser ?
We responded as follows:
Dear Amit,
Civil disputes cannot be resolved under the Central Sales Tax Act. Assessing authority cannot compell a dealer for issuing a form to a dealer.

Query No. 144		Querist city: Delhi
Querist asked us:
Is Form H issued by someone or it is just a declaration by the exporter.
We responded as follows:
Dear Madame / sir,
Form H is a certificate on which exporter certifies that purchase of goods was made for complying with existing export order with the foreign buyer and subsequently the goods were exported. Purchases against Form H can be made only after receipt of export order.

Query No. 143		Querist city: Meerut
Querist asked us:
Sir/Madam, Please consider the following condition: 1) Party ‘X’ from U.P. Purchases medicines from pary ‘Y’of Haryana against Form ‘F’ (Branch Transfer) 2)Party ‘X’ has deposited the security deposit of Rs. 5 Lakhs . Now, after some years the conflicts arises between both of the parties and Y party set up his own network and start marketing their products on the other hand it redirects all the market collection towards himself and forfeits the security deposit of X. Now X on the other hand is not issuing the form ‘F’ meant for tax rebate (0 %). Therefore I hereby want to know that how we can force ‘X’ legally to raise the form F against ‘Y’ as to claim tax relaxation. and how Party ‘X’ can claim his security deposit since both of the parties arbitrator has come to no conclusion. I repeat the legal actions that y can opt to claim his form F. Thanking You! Amit
We responded as follows:
Dear Madame / sir,
Purchase cannot be made against Form F. Secondly, stock transfer happens in between Head Office and Branch of same company or in between two branches or depots of same company. You are talking of dispute in between X and Y, it means that X and Y are different dealers. In view of this it seems that Y has sold its goods to X. Being so, provision of Form F is not applicable.

Query No. 142	Querist name Mr. Satyajit Naik	Querist city: Ahmedabad
Mr. Satyajit , asked us:
Dear sir, We are executing engineering contract with the company located in Uttar Pradessh, e.g the contract price of Rs. 100000/-, out of this we have idendtified 80% as supply of material and 20% Services, but in this 20% portion some portion is supply of material which is not identified, what we should do in this case...? Query : Is WCT is attracting on 100% value or 20% portion... Pls guide
We responded as follows:
Dear Satyajit ,
Works contract is single indivisible contract of material and services. Sale price of material is determined by deducting amount receivable towards labour and other services and profit on such labour and other services. In your case it is not clear that how you have identified 80% value of contract towards material. If you have identified on the basis of percentage prescribed in VAT Act or rules, then remaining 20% shall be taken purely towards labour and other services and profit on them.

Query No. 141		Querist city: Mumbai
Querist asked us:
I am working for a construction firm, I would like to know whether WCT is chargeble on the price escalation amount? If yes, then what is the% of WCT?
We responded as follows:
Dear Madame / sir,
Yes, amount received on account of price escalation is part of sale price. Tax shall be chargeable at same percent which had been applicable in respect of original price.

Query No. 140	Querist name Mr. ankit gupta	Querist city: UP
Mr. ankit, asked us:
Sir , I am in construction business & registered under WCT (in Meerut UP VAT). I have purchased TMT steel (puchase value suppose of Rs. 100000):- a)from Delhi on C Form, what amount on purchase value of Rs. 100000/- i have to deposit entry tax? b) from ghaziabad against UP vat but excluding entry tax, what amount on purchase value of Rs. 100000/-i have to deposit entry tax? c) I have applied for compounding scheme @ 2% but now sales tax department has asked me to deposit @ 4%. is it right? d) Is it beneficiary for me to shift from compounding scheme i.e. 4 % to 12.5% if the major value of my contract consists of steel on which VAT is only 4%?
We responded as follows:
Dear ankit,
Answers to some queries are debatable. My advice is that you should consult some VAT practitioner.

Query No. 139		Querist city: lucknow
Querist asked us:
dear sir i have receipts notice in u/s 28(1)b(iv).i want to know that how i prepare case for this.What it is neccessary of opening , closing ,purchase and sales quantity details given in this case.when my buissness is medicine. plz give me reply.........
We responded as follows:
Dear Madame / sir,
Quantity details are necessary for examining correctness of sales shown by you. For preparation of your case consult some tax practitioner.

Query No. 138	Querist name Mr. MANAN GUPTA	Querist city: NOIDA
Mr. MANAN, asked us:
Dear Sir, I have business in noida. I have sold some items against form-c to a party situated at Haryana. Now party is asking Form E-I/II for this transactions. Since it is new for me, I request you to guide me on the matter of issue of Form E-I/II. What documents should be obtained from the purchaser situated in Haryana before issue to Form E-I/II.
We responded as follows:
Dear MANAN,
Form E-1 may be issued by you to Haryana purchases, if the Harayana party has issued C Form to you. No other document is required.

Query No. 137	Querist name Miss MADHAVI	Querist city: BHOPAL
Miss MADHAVI, asked us:
what is rate of VAT & SERVICE TAX ON under construction flat in BHOPAL
We responded as follows:
Dear MADHAVI,
Sorry! we do not have updated version of VAT Law applicable in Madhya Pradesh.

Query No. 136	Querist name Mr. Prateek Gupta	Querist city: GHAZIABAD
Mr. Prateek, asked us:
whether u/s 34 of up vat act houskeeping services provided to shopping malls are treated as work contracts. The charges by service provider include services of manual labour, consumables, toiletries, minor tools, etc. Whether it is purely a service contract or a works contract. If it is works contract whether tds deductable and if so whether on gross amount or on goods supplied by service provider.
We responded as follows:
Dear Prateek,
If contract involves transfer of property in any goods and it is single indivisible contract, then it is a works contract. If contract falls in the category of a works contract then it is mandatory to make TDS towards VAT liability of contractor. Property does not pass in those goods which are consumed in rendering service part.

Query No. 135		Querist city: NEW DELHI
Querist asked us:
WE HAVE DONE A CENTRAL SALE FROM MUMBAI TO KOLKATA. THE CUSTOMER OF KOLKATA HAS DEDUCTED WCT TDS UNDER WEST BENGAL VAT A/C. WHETHER THIS WCT TDS IS ADJUSTABLE AGAINST CST PAYABLE. SOMEONE HAS INFORMED THAT IT CANNOT BE ADJUSTED SINCE THEY ARE TWO SEPARATE STATES. HOW WE CAN GET BENEFIT OF THE WCT TDS
We responded as follows:
Dear Madame / sir,
WCT TDS cannot be made in respect of sale made in the course of inter-state trade or commerce. Judgment given by the Honourable Supreme Court in the case of STEEL AUTHORITY OF INDIA LTD. Vs. STATE OF ORISSA & ORS. ETC. ETC. DATE OF JUDGMENT: 25/02/2000 is an authority on the issue. Adjustment of tax deducted by West Bengal Government cannot be adjusted towords tax payable under CST to Maharashtra Government. You may claim refund of amount of tax deducted by West Bengal Government.

Query No. 134	Querist name Mr. arpit	Querist city: surat
Mr. arpit, asked us:
dear sir when i was do revised return on side then this query show ''Revised Returns cannot be filed after 08/01/2012 for the period 01/09/2011 - 30/09/2011.'' pl solved this queary and ans on my mail id as soon as posibal
We responded as follows:
Dear arpit,
In U.P. Revised return for a tax period can be submitted on or before the last date prescribed for submitting return of next tax period. In view of this revised return for the period 01/09/2011 to 30/09/2011 could have been filed by 20/11/2011. About Gujarat VAT provisions, we do not have updated provisions. We would also like to point out that this Web Site does not belong to Government Department.

Query No. 133	Querist name Mr. SANJEEVE KAPOOR	Querist city: GURGAON
Mr. SANJEEVE, asked us:
WE ARE A FIRM OF ARCHITECTS AND BUILDERS. PLEASE ADVISE WHETHER WE HAVE TO DEPOSIT WCT ON THE ADVANCE PAYMENTS RECEIVED FROM OUR PRINCIPALS (CLIENTS)AS PER THE HATYANA WCT RULES THANKS
We responded as follows:
Dear SANJEEVE,
Sorry! we do not have updated WCT provisions applicable in Haryana.

Query No. 132		Querist city: NOIDA
Querist asked us:
we have made purchases under Bill of export from a party in Delhi.We have taken goods on Bill of Entry in SEZ and payment is also made in foreign Currency. Now party is demanding form I under SEZ. Can we issue it
We responded as follows:
Dear Madame / sir,
Form I can be issued in respect of inter-state purchase made by a dealer of SEZ if goods are meant for use in authorized operations referred to in sub-section (6) of section 8 of the Central Sales Tax Act, 1956. Provisions of the section can be visited on www.taxtalkindia.com or on this site under U.P. VAT Diary link available on Home Page.

Query No. 131	Querist name Mr. Pradeep Kumar Srivastava	Querist city: Kolkata
Mr. Pradeep, asked us:
Is Sales tax waybill is required to be processed for imported goods sold to SEZ buyer ? Kindly help by providing exact notifications.
We responded as follows:
Dear Pradeep,
Under sales tax or VAT, normally way will has been prescribed to prove that goods are being imported by a bonafide dealer. It is not related with tax liability. Please visit West Bengal VAT Rules on Department Web Site.

Query No. 130	Querist name Miss prajakta deshmukh	Querist city: pune
Miss prajakta, asked us:
whether to charge mvat or cst if the purchaser is within maharashtra (invoice is to be given within maharshtra)but the goods to be delivered is outside maharashtra?
We responded as follows:
Dear prajakta,
Since goods will moove outside the State as a result of sale, it will be an inter-state (Central Sale). You will have to charge CST (central sales tax).

Query No. 129	Querist name Mr. TUSHAR DOSHI	Querist city: MUMBAI
Mr. MANUBHAI DOSHI, asked us:
Whether Form H is defective if purchase order and date are missing ? Remaining all the requirements have been fullfiled even Bill of Lading has been given
We responded as follows:
Dear MANUBHAI DOSHI,
Details of purchase order placed by exporter with selling dealer and details of purchase order/agreement made by foreign buyer with Indian exporter both are essential for examination of conditions given in sub-section (3) of section 5 of the Central Sales Tax Act, 1948. In absence of these certificates given on Form H are incomplete.

Query No. 128		Querist city: VALSAD
Querist asked us:
If manufactured goods(made using raw material ect. specified by purchaser) eligible for covering under form "H"
We responded as follows:
Dear Madame / sir,
From H can be used for making purchase of goods which are purchased by exporter for fulfilling existing export order.

Query No. 127		Querist city: Lucknow
Querist asked us:
whether deduction of wct at source is applicable on advance payment
We responded as follows:
Dear Madame / sir,
Suppose you make all payments in advance, then you will not be able to deduct any amount while adjusting amount payable towards valueable consideration out of advance because there will remain no amount from which you would be able to make deduction.

Query No. 126		Querist city: Lucknow
Querist asked us:
Whether deduction of WCT at source is applicable on advance payment (Say mobilization Advance)under UPVAT ACt
We responded as follows:
Dear Madame / sir,
Suppose you make all payments in advance, then you will not be able to deduct any amount while adjusting amount payable towards valueable consideration out of advance because there will remain no amount from which you would be able to make deduction.

Query No. 125	Querist name Mr. Manish Raj	Querist city: jamshedpur
Mr. manish, asked us:
Flex Printing
We responded as follows:
Dear manish,
So what?

Query No. 124		Querist city: New Delhi
Querist asked us:
We are registered under Uttrakhand Vat and had a work contract with party in Delhi, in which we have deducted tds under work contract. My query is whether we need to be registered in Delhi or can submit return of tds in Uttrakhand Vat.
We responded as follows:
Dear Madame / sir,
If contract has been executed by Delhi Party for you in Uttrakhand, then you are not required to submit return in Delhi. You are also not required to obtain Registration in Delhi. You would have deposited TDS amount in Uttrakhand.You will be required to submit TDS Statement in Uttrakhand.

Query No. 123	Querist name Shri SANJAY SURANA	Querist city: ghajiabad
Shri sanjay , asked us:
Dear Sir We want to execute Two Consignment Agreement on different stamp paper and agreement will be exactly same. Our Consignee want to retain original copy agreement and we also want to retain the orginal agreement thats why there is a need of two copy of agreeement in orginal, can we do as per law? is there any requirement of quoting or giving information on either of agreement regarding copy of this agreement is also executed on different stamp paper? Please solve my Query and respond me as early as possible thanks Sanjay Surana
We responded as follows:
Dear sanjay ,
Copy will also become original if it is prepared on stamp paper and parties put their signature on it. Otherwise, single document may have only one original copy.

Query No. 122		Querist city: Allahabad
Querist asked us:
Dear Sir, My query is "can an assessment under UP VAT Act be made placing a relationship in between the electricity consumption and the production shown by the assessee in his books of records." Also kindly guide where to down load the texts of case Shyam Rice Mills v. CST [1988] UPTC 375(All.) Thanks in Advance
We responded as follows:
Dear Madame / sir,
Account books cannot be disbelieved on the sole ground of electricity consumption. But if account books are not found reliable on other grounds, production can be determined on the basis of electricity consumption.

Query No. 121	Querist name Shri purumishra	Querist city: kanpur
Shri puru, asked us:
the penalties of starting year im wich serial no.
We responded as follows:
Dear puru,
I could not follow your query. Please explain what you want to know.

Query No. 120	Querist name Mr. VIVEK BARANWAL	Querist city: SULTANPUR
Mr. VIVEK, asked us:
We are contractee of civil and Electrical contracts. We have received bill of contractor including service tax (separately charged). Contractor has requested not deduct WCT on service tax portion. Please clarify with section and Notification Regards Vivek
We responded as follows:
Dear VIVEK,
Deduction is to be made on gross amount of Bill including all amounts. For notification and other provisions, please visit link U.P.VAT Diary 2011 on Home page of this site i.e www.vatconcept.com. Under link related to works contract tax you will find all related provisions.

Query No. 119		Querist city: SANGLI
Querist asked us:
IS there any taxes levied on Vegetable Oil such as neem oil etc.
We responded as follows:
Dear Madame / sir,
In U.P., Vegetable Oil is taxable @4% and Additional Tax is payable @1%. It is included in Entry No. 131 of Part-A of Schedule-II.

Query No. 118		Querist city: Lucknow
Querist asked us:
Treatment of RITC under VAT Audit in exempted organisation.
We responded as follows:
Dear Madame / sir,
Please explain your query.

Query No. 117	Querist name Mr. vivek aggarwal	Querist city: noida
Mr. vivek, asked us:
we have regigtered with UP vat government site for online downloading of forms and we download and submit utilised forms online now we want to know if we need to submit the filled forms with bill photocopy in department also physically even if we have duly filled and submitted it online
We responded as follows:
Dear vivek,
Please contact your assessing authority.

Query No. 116	Querist name Mr. arvind singh	Querist city: noida
Mr. arvind, asked us:
What is the rate applicable on sale of window & doors.
We responded as follows:
Dear arvind,
Under U.P. VAT, rates of tax on sale of windows and doors have not been classified. Therefore, their sale should attract tax liability of 12.5 % and liability of additional tax @1%.

Query No. 115	Querist name Mr. yogesh Kumar Gupta	Querist city: New Delhi
Mr. Yogesh, asked us:
Dear Sir I want to know the rate of tax under composition at the time of UPTT period i.e. under the imoprt of 5% and over the import of 5% , and any notification or circular for that so plesae provide me. and also for the same in VAT periiod. Waiting for response as soon as possiable. Let me know if any doubt on above. Regards Yogesh kumar gupta 999981842
We responded as follows:
Dear Yogesh,
Under the U.P. Trade Tax Act, 1948, initially rate of composition money, in cases of civil works contracts, was 2% with limitation of 5% imported material and composition scheme was not available where import had exceeded 5%.

Query No. 114	Querist name Mr. Rajeev Kumar Chaturvedi	Querist city: Delhi
Mr. Rajeev, asked us:
In case of civil work contract,if interstate purchase is 20% of contact value, 1. Can Composition Scheme be availed. 2. at what % will be the Tax Liability. 3. whether Vat Tax will be paid by us or party will deduct WCT.
We responded as follows:
Dear Rajeev,
Yes, you can opt composition scheme but you will to pay composition money @6%. Contractee will deduct TDS (WCT) @4%. While submitting return you will adjust this amount in amount of composition money and pay the balance.

Query No. 113	Querist name Mr. Sunil L Korde	Querist city: Nashik
Mr. Sunil, asked us:
I have purchased a home amount Rs.13.51 for which the builder asking for Sales, Cess taxes extra. Is it as per legal procedure & who should pay the taxes by builder or buyer(me). For paying above taxes should builder have tax no's as I have suppose to pay him. Please clarrify
We responded as follows:
Dear Sunil,
House falls under immovable property and VAT is not leviable on sale or purchase of immovable property. VAT is leviable on sale or purchase of goods.

Query No. 112	Querist name Mr. Prince	Querist city: Lucknow
Mr. Prince, asked us:
Dear Sir, Can we claim Input VAT on Repair of P&M, Stabilizer & Spare parts
We responded as follows:
Dear Prince,
In U.P., capital goods are defined in section 2 of the U.P. VAT Act, 2008. Please visit U.P. VAT Diary 2011 on this Web Site. See section 2 of the U.P. VAT ACT 2008 under principal Acts link and then definition of "Capital Goods". If items used in repair are included in capital goods then you can avail Input Tax Credit in respect of such goods.

Query No. 111		Querist city: mysore
Querist asked us:
Sir,Assessing authority is of the opinion that VAT input tax credit on capital goods can be allowed only partially when the capital goods are used in for job work along with used for own sales.Job amounts to manufacture as a new commodity comes into existence. As per the partial rebating Sec 'manufacture'activity is eligible for entire input credit.Pl provide me any case laws from which we can prove that entire input is to be given to job works if it amounts to manufacture.
We responded as follows:
Dear Madame / sir,
Sorry! We are not aware of any case law on the subject.

Query No. 110	Querist name Mr. Awadhesh	Querist city: Ghaziabad
Mr. Awadhesh, asked us:
what % of CST is applicable on the billing of writing instrument (Pen)From Noida to Delhi
We responded as follows:
Dear Awadhesh,
If writing instrument is being sold against Form C, then CST will be charged @2 percent otherwise it will be charged @5 percent.

Query No. 109	Querist name Mrs. Sandeep	Querist city: Ghziabad
Mrs. Sandeep Singh, asked us:
sir if we purchase some electrical goods against form C and we used this electrical goods on building electric installation can we raised form c about this goods
We responded as follows:
Dear Sandeep Singh,
Purchases against Form C can be made if goods are purchased for purposes specified in the Certificate of Registration issued under Section 7(2) of the Central Sales Tax Act, 1956. In my opinion, Form C cannot be used for purchasing goods for use in installing them in a building unless the person purchasing goods is a contractor and he is incorporating such goods in execution of a works contract.

Query No. 108		Querist city: Agra
Querist asked us:
Sir pls tel me wt is the code of Building Material
We responded as follows:
Dear Madame / sir,
There is no commodity code for building material. Building material consists of various commodities. Codes of these commodities are to be used.

Query No. 107		Querist city: lucknow
Querist asked us:
passwod conirmatiom
We responded as follows:
Dear Madame / sir,
Could not follow. Relating to which password you are talking about.

Query No. 106	Querist name Mr. ADESH KUMAR GUPTA	Querist city: GURGAON
Mr. ADESH, asked us:
I want to purchase of M.S.Wire for using in Costruction Building. I want to know What will be tax charged in haryana
We responded as follows:
Dear ADESH,
Sorry ! we do not have list of tax rates applicable in Haryana.

Query No. 105	Querist name Mr. yogendra kumar	Querist city: Noida
Mr. yogendra, asked us:
What is the tax rate on Holograms now a days
We responded as follows:
Dear yogendra,
Rate of tax for holograms has not been specified by its name in any of the VAT rate Schedules. Hologram, if it is printed on paper, can be considered to be a paper printed label, then it will attract vat rate of 4% and additional tax @1%.

Query No. 104		Querist city: mysore Karnataka
Querist asked us:
Sir, Reputed garment co give job work to small co.They supply fabric,idetify the suppliers for accessories (like buttons ,zip.packing material etc ).Manufacturing co has to procure accessories which will have name,logo trade mark of the reputed garment co and use it for manufacture of garments.Manufacturing co raises two invoices one for job wotk ie labour bill & a tax invoice for accessories used in garments.Is this activirty a job work or works contract?On purchase of accessories by manufacturing co,transfer of property in the goods (accessories) is absolute or what? Because logo trade name of reputed co is printed on every item.So can the regular rate of tax be applied to accessories used in manufacture termed as WCT.Ready made garment is not in specified list of WCT.Pl clarify.
We responded as follows:
Dear Madame / sir,
If contractee does not realize price of goods provided by him to contractor for incorporating in garments to be manufactured for him, property does not pass from company to contractor. There is no sale of such goods. Contractor never becomes owner of such goods. Property always remain with the company in such goods. Where agreement provides for payment of separate amounts for supply of goods and labour charges, the contract is not a works contract involving transfer of property in goods. Works contract involving transfer of property in goods as a single indivisible contract. In my opinion, in the quoted example, sale of items for which tax invoice is raised is a simple sale of goods and will attract vat rates provided in the relevant schedule.

Query No. 103	Querist name Mrs. jinendra surana	Querist city: bhadohi
Mrs. jinendra, asked us:
i have sale my good under 4%vat and 1%sat to a trader at 02-02-11 than i have buy goods 10-02-11 at up in 4%vat and 1%sat and that good i will sold to exports aganist from e in monthly return i claimed my itc in purchese and sale than i sold it aginst form e. in this this is right
We responded as follows:
Dear jinendra,
Your query is not clear. Please send fresh query using roman like "maine 10-02-2011 ko ek vyapari se mall kharida, ....."

Query No. 102	Querist name Mr. Shiv Kumar	Querist city: Agra
Mr. Shiv, asked us:
Dear sir, Meri Agra me footwear manufacturing unit hai jisme Rs. 150 to 200 tak factory cost ka footwear banta hai. footwear manufacturing me hum jo row materials eg. Sole,leather, lining, adhesive,insole, latex, thereds etc. purchase karte hai jis per hume 4% to 13.5% vat dena padta hai lekin jab footwear manufacturing ke baad hum product sale karte hai us per hum koi vat nahi laga paate according to upvat because of this reason purchase ka saara vat hume paid karna padta hai es vat ko hum refund kaise karwa sakte hai. please help me .......... Shiv Kr Chandra
We responded as follows:
Dear Shiv,
As per provisions of VAT Act, Input Tax Credit is not admissible where sale of purchased goods or sale of goods manufactured by using purchased goods is exempt from levy of VAT. Facility of Input Tax Credit is available only if manufactured goods are sold in the course of export out of India. This has been policy of the Government. Therefore, you are not entitled for claiming refund.

Query No. 101	Querist name Mr. vivek aggarwal	Querist city: noida
Mr. vivek, asked us:
i want to revice my 4th qtr return ie jan,feb,and march 2011 what is the last date for revising the return is there any penaly if i revise it now
We responded as follows:
Dear vivek,
Time for submitting revised return for tax period ending on March 31st, 2011 has expired. Revised return for any tax period cab be filed before expiry of the last date prescribed for submitting return of next tax period. Time for submitting annual return for 2010-2011 has also expired. Now there is no use of submitting quarterly return. You should file your annual return if not filed so far.

Query No. 100		Querist city: mysore
Querist asked us:
Sir, Under Karnataka vat Act rate of tax for work contracts is as specified in Schedule VI @5%.All other work contract not specified in the schedule are taxable at 14%.A manufacturer has undertaken works contract which is not in the specified list. My query is if all the inputs used are taxable @5%.WCt also should be at 5% only, not at 14% ie residual clause.Can any knowledgeable members give judicial decision/supporting arguments supporting my views.Thanks in advance.Venakt
We responded as follows:
Dear Madame / sir,
If contract is not covered under specified contracts then tax is to be paid @14% irrespective of nature or category of goods incorporated in execution of the contract. No lower rate can be claimed on any ground.

Query No. 99	Querist name Mrs. vimal singh	Querist city: Kanpur
Mrs. vimal, asked us:
Respected Sir, In case Of If sale is made without obtaining Form C or if Form C is obtained but is not furnished to the assessing authority.Then Same rate which is applicable to sale of such goods inside the State But In U.P. Vat tax 4% & sat 1%. In that case we charged tax 5% or 4% in Inter state sale without obtaining Form 'C'. Thanking you Vimal Singh
We responded as follows:
Dear vimal,
You have to charge tax @5 percent.

Query No. 98		Querist city: Gurgaon
Querist asked us:
We are planning to do photocopying job for some companies in UP. We also have local office in lucknow. Job involves we will use our own machines, toner, papers & labour to do photocopying job. I assume it comes under Work contract. What will be the VAT/WCT rate on this?
We responded as follows:
Dear Madame / sir,
Various goods, in which property will be transferred in execution of the works contract, will attract vat rates as they are applicable to ordinary sale of such goods. For Vat rates, please visit www.taxtalkindia.com. Use Code & Rate Finder link.

Query No. 97		Querist city: Modinagar
Querist asked us:
Sir, My supplier charged VAT @13.5%(Including SAT)while the rate of tax on the item is 5%(Incl.SAT).I claimed I.T.C. @13.5%.A.O. is not agree with me. he gives notice for RITC. What is the actula position?
We responded as follows:
Dear Madame / sir,
Credit is allowed that of input tax and input tax is the amount of tax paid to registered selling dealer or to the Government on purchase of goods. View of assessing authority is not correct.

Query No. 96	Querist name Mr. manish gupta	Querist city: raebareli
Mr. manish, asked us:
let us know about commodity code of laminated sheet and rate of vat tax
We responded as follows:
Dear manish,
Please visit www.taxtalkindia.com. Use Code and rate finder link available on Home page of this site.

Query No. 95	Querist name Mr. manish gupta	Querist city: raebareli
Mr. manish, asked us:
let us know about commodity code of laminated sheet and rate of vat tax
We responded as follows:
Dear manish,
Please visit www.taxtalkindia.com. Use Code and rate finder link available on Home page of this site.

Query No. 94		Querist city: ooty
Querist asked us:
Dear sir, if we are importing goods from other countries.we are paying custom duty etc. whether we can input credit on vat returns. if so what is the percentage we can take the credit. waiting for your valuable reply. Thanks Rathish
We responded as follows:
Dear Madame / sir,
Vat input tax credit cannot be claimed in respect of Customs Duty.

Query No. 93		Querist city: Ghaziabad
Querist asked us:
Dear Sir, Sir that's very kind of U for giving your views about our confusions. Our firm is registered in Ghaziabad. We have deposited two payments in 2007-08 ie for the month of Sep 2007 & Dec 2007 in the next Month Oct 2007 & Jan 2008 respectively. But both the challans have been misplaced from the department files. Our challans copies are missing due to entrepreneurship changed. Now Our bank has given a confirmation certificate of Debit amount as well as we also get the confirmation certificate from Credit amount certificate from the Punjab National Bank Sec 27 Noida UP. Now our assessing authority is not accepting this & advising us bring the Treasury Certificate OR DCR Certificate. Pl suggests us:- that when both the banks has given certificates of Debit & Credit amounts it is sufficient or not From where we get the Treasury Certificate Or From where we get the DCR Certificate ( pl give the Address)
We responded as follows:
Dear Madame / sir,
In a District, Treasury is headed by Treasury Officer and normally, Treasury is located in the same compound in which office of District Magistrate is located. When amount paid by a dealer is transferred in Government's account, Bank (State Bank of India) sends a copy of challan to Treasury. Treasury keeps record of all deposits. It can issue certificate on the basis of this record. DCR is Daily Collection Register and is maintained by Commercial Tax Department. It is kept under supervision of Deputy Commissioner (Administration) of Commercial Tax Circle.

Query No. 92	Querist name Mrs. ramesh kumar mishra	Querist city: raebareli
Mrs. ramesh, asked us:
last month itc was rs.10000 current month unregistered pur tax was rs. 15650 the last month itc adjusted rs 10000 & rest tax rs 5650 deposited now the current month eared itc will be rs 15650 or other please confirm above
We responded as follows:
Dear ramesh,
Sorry! I could not get you. In U.P., Rule relating to claim of ITC by the dealer in ordinary circumstances provides that ITC will be claimed in the tax period in which purchase is made. Therefore, in respect of purchase from persons other than registered dealers also ITC can be claimed in the month of purchase. As per sub-section (1) of section 15 of the U.P. VAT Act, 2008, net tax payable is to be computed as per equation given there. Tax amount due on purchase is to be included in tax payable and then ITC can be claimed in respect of such purchase.

Query No. 91		Querist city: Ghaziabad
Querist asked us:
what is the vat rate applicable on old machinery, which is to be used for pasting proces in corrugation industry?
We responded as follows:
Dear Madame / sir,
In U.P., old machinery in working condition will attract the same rate of VAT which is applicable to new machinery and such rate is 12.5% in addition to additional tax @1%.

Query No. 90	Querist name Mr. AmitabhPatel	Querist city: Allahabad
Mr. Amitabh, asked us:
Respected Sir, What is the procedure which should be followed by the Assistant Commissioner in Recovery of Tax in Commercial Tax Department in Uttar Pradesh.Plz explain all the steps also.
We responded as follows:
Dear Amitabh,
Please visit www.taxtalkindia.com. On home page visit link VAT & OTHER LAWS. Thereafter, visit U.P. VAT Act, 2008 section 33. The section prescribes procedure for recovery of tax. Departmental directions are compiled in Department's mannual. Sorry we do not have Mannual.

Query No. 89	Querist name Mr. Amitabh Patel	Querist city: Allahabad
Mr. Amitabh, asked us:
Under Self Assessment Scheme for businessman having taxable turnover upto Rs 50 lacs, U/S 7(2)of Trade Tax Act,(Period 1/4/2007 to 31/12/2007)- Dealer could not submit original form III-A before Assessing Authority. So AA did not give benefit of form III-A and considered the amount as taxable sale. In first appeal original form III-A submitted. Benefit of form III-A not given by first appellate authority. Taxable sale & Tax enhanced by first appellate authority on presumptions. How to take benefit of form III-A. IInd appeal filed within limitation.Money debited as Kurki Aadesh from dealer's bank account without any notice to the dealer just after filing IInd Appeal.What to do.
We responded as follows:
Dear Amitabh,
It seems that at the stage of first appeal, application for accepting additional evidence had not been moved. Or the applellate authority would have found them defective. Now you can try to obtain stay order against recovery of demand.

Query No. 88		Querist city: noida
Querist asked us:
Sir I want to know the Rate of vat tax on microwave products at uttar pradesh
We responded as follows:
Dear Madame / sir,
In U.P. Microwave products are taxed @13.5 percent as unclassified goods.

Query No. 87	Querist name Shri Amitabh Patel	Querist city: Allahabad
Shri Amitabh , asked us:
Can a dealer file a second appeal against the judgement of first appellate authority before Commercial tax tribunal alongwith application for Rectification of mistakes u/s 22 of U.P. Trade Tax Act,1948 before first appellate authority
We responded as follows:
Dear Amitabh ,
Filing of appeal against an order and presentation of application for rectification of apparent mistake in order before the authority who has passed such order are two different proceedings and may run simultaneously. But after decision of appeal, if application for rectification remains pending then it becomes infrutuous. Where order is rectified before disposal of appeal, then appellant has to bring to the notice of appellate authority (Tribunal or First appellate Authority, whosoever it may be) in writing, .

Query No. 86	Querist name Mr. RAJEEV SAXENA	Querist city: NOIDA
Mr. RAJEEV, asked us:
As per response recd from my querries from Sh Keshav Dayal Ex member tribunal, if Form D is not abolished then Can we Issue Form E instead of Form D in SEZ.
We responded as follows:
Dear RAJEEV,
Please visit www.taxtalkindia.com. On home page, visit Exemption Forms. Purpose of issuing various Forms has been provided there.

Query No. 85	Querist name Mrs. MANOJ	Querist city: GURGAON
Mrs. MANOJ, asked us:
WCT rate charge on work contract in haryana.with example
We responded as follows:
Dear MANOJ,
Sorry ! we do not have details about works contract provisions applicable in Haryana.

Query No. 84	Querist name Mr. sandeep khare	Querist city: Lucknow
Mr. sandeep, asked us:
Against an exparte order u/s 25(1)(1), an application u/s 32 was filed as well as an appeal u/s 55 was filed, in appeal only 50% tax amount was stayed which is unacceptable to me. But in the mean time while my application u/s 32 was pending my CTO ordered a recovery for the full amount of tax. My question is (1) that whether it is leagal to order a RC while an application u/s 32 is pending before CTO. (2) can i challenge this recovery on this ground????
We responded as follows:
Dear sandeep,
Uder the U.P. Trade Tax regime, Commissioner has issued administrative directions about not issuing recovery certificate unless the application for reopening exparte assessment order was pending for disposal. These directions have not been withdrawn. Otherwise also there is reasonable cause for not depositing the ammount demanded by an exparte assessment order. you have already challenged the order by which demand was created. But you have not made compliance of the order passed in appeal. If you were not satisfied with the order passed in appeal on stay application you would have filed appeal before the Tribunal.

Query No. 83	Querist name Mr. sandeep khare	Querist city: Lucknow
Mr. sandeep, asked us:
An exparte order u/s 25(1)(1) of imposing tax rs.1 lac was placed. I applied an application u/s 32 and appeal against the same within a gap of 1 week. now appeal only stayed 50% of the tax amount which does not serve my purpose. In the mean time my CTO shows his inability to entertain the matter due to my going to appeal unless same is remanded from appeal section. Although my application u/s 32 is still pending and i am facing the ire of Rc which is initiated. So, please suggest me what to do and where to go for relief. (1) revision (2) remand (3) appraching the high court outside comtax deptt.
We responded as follows:
Dear sandeep,
Proceedings relating to application for setting aside exparte order are independent of filing of appeal. Assessing authority can still decide the application and if the assessing authority sets aside the exparte order, then appeal will be rendered infructuous. You can also present appeal before the Tribunal against stay order passed by the appellate authority. Assessing authority has to decide the application by passing order on it. Ask the assessing authority to pass an order in writing. If he refuses then you can approach the higher authorities of the Commercial Tax Department alongwith an application for issuing directions to assessing authority for deciding your application.

Query No. 82	Querist name Mr. RAJEEV SAXENA	Querist city: NOIDA
Mr. RAJEEV, asked us:
Please let me know that D form in SEZ under UPVAT ACT used for exemption of tax for purchase of raw material is abolised. if yes then please let me tell the notification no and date.
We responded as follows:
Dear RAJEEV,
So far as I know, Form D for claiming exemption on sale to SEZ developer or unit has not been abolished.

Query No. 81	Querist name Mr. sushil kumar	Querist city: noida
Mr. sushil, asked us:
what is e1 purchase ?
We responded as follows:
Dear sushil,
Certain dealer “A” makes inter-state sale of certain goods from Delhi for dispatch to Allahabad as desired by the purchasing dealer “B”. Dealer “A” hands over goods to a transporter and receives Goods Receipt (GR) from the transporter. Dealer “A” sends this Goods Receipt to dealer “B”. Now, dealer “B” does not take delivery of goods from the transporter at Allahabad. He finds another dealer “C” who wants to purchase goods covered by Goods Receipt. Dealer “C” agrees to pay sale price demanded by “B”. Dealer “B” gives Goods Receipt to “C” and makes an endorsement on Goods Receipt for making delivery to “C”. “C” takes delivery of goods from the transporter. In this case, there are tow inter-state sales, first by “A” to “B” and second by “B” to “C”. In this situation sale by “B” will enjoy exemption on inter-state sale by it from Central Sales Tax if it receives a declaration in Form -C from its purchasing dealer “C” and at the same time a Certificate in Form E1 from its selling dealer “A”. Purchase by “B” from “A” may be called E1 purchase. Here it is to be noted that sometimes, it is not required to make any endorsement on Goods Receipt. But handing over of Goods Receipt by “B’ to “C” is necessary so that he may take delivery of goods or he may sell Goods Receipt to any other person. Goods may also be dispatched by other public carrier. Railway issues Railway Receipt (RR). In that case RR is sent by “A” to “B” and “B” hands over RR to “C”.

Query No. 80	Querist name Mr. sushil kumar	Querist city: noida
Mr. sushil, asked us:
what is works contract tax?
We responded as follows:
Dear sushil,
Work Contract Tax is the amount of tax payable on sale of goods, which get involved in execution of a works contract and in which transfer of property in goods takes place. You are advised to go through the works contract related articles available on this (www.vatconcept.com) Site.

Query No. 79		Querist city: Bhayander(Mumbai)
Querist asked us:
i want to give the details for interest rate for late payment of work contract tax for period of april 2011 to sept.2011
We responded as follows:
Dear Madame / sir,
Under u.P. VAT, rate of interest, for the delay caused in payment of tax shown payable in return, is 1.25 % per month. Month is to be taken as calendar month. You are advised to visit www.taxtalkindia.com. On home page there is a link Compute Simple Interest. You can use this facility for computing interest. Moreover, the site also provides details of interest payable.

Query No. 78	Querist name Mr. SOMBIR SINGH MAAN	Querist city: GANDHIDHAM
Mr. SOMBIR, asked us:
How I get the reprint form 38 coomercial tax
We responded as follows:
Dear SOMBIR,
Please read carefully the security instructions provided on the Web Site of U.P. Cpmmercial Tax Department and make necessay changes in security settings on your computer. Thereafter you will be able to print Form 38.

Query No. 77	Querist name Mr. KRISHNA REDDY	Querist city: HYDERABAD
Mr. KRISHNANA, asked us:
Dear sir, Requirement of vat rates product name organic manre,plant growth pramoter, bio fertilizers please required vat rate krishna reddy.y
We responded as follows:
Dear KRISHNANA,
You are advised to visit www.taxtalkindia.com. On home page you will find a link similar to VAT CODE & RATE FINDER. Please use this link to get answers.

Query No. 76		Querist city: lucknow
Querist asked us:
Sir; Thanks for your reply .My query Code was FQ67 ravi9/14/2011. My question remains the same ,though i could not find any other category to put question relating to FY05-06 and onwards. Pl do reply on the question your opinion please. I strongly feel that purchase is made thru cheques and pymrt recd thru govt cheques hence no question of any underbilling or manupulation. Pl do reply
We responded as follows:
Dear Madame / sir,
Please write details of one actual transaction (example with figures) and send it to me using my email: dayal@vatconcept.com.

Query No. 75	Querist name Mr. Amitabh Patel	Querist city: Allahabad
Mr. Amitabh , asked us:
How the assessing authority will compute closing stock of a dealer's commodities on 31-12-2007 if it is not disclosed in annual return (before the commencement of UP VAT on 1-1-2008)
We responded as follows:
Dear Amitabh ,
Assessing aurhiority may direct the dealer for producing account books relating to period prior to 31-12-2007.

Query No. 74	Querist name Mr. Mukesh Anand	Querist city: Noida
Mr. Mukesh, asked us:
What is the turnover limit for filling Annual Return alongwith Certified copy by a Chartered Accountant
We responded as follows:
Dear Mukesh,
Under U. P. VAT a dealer is required for submitting certified copy of audit report if his annual turnover exceeds one croe rupees.

Query No. 73	Querist name Mr. VELU	Querist city: CHENNAI
Mr. D, asked us:
We want to send sample boxes for testing purpose to Bureau Veritas Consumer Products Services Limited. Please let us know the forms to be enclosed with the sample consignmet
We responded as follows:
Dear D,
Sorry! You have not mentioned name of place from where goods will be sent and the name of the place where goods will be sent.

Query No. 72	Querist name Mr. Gaurav Kumar sharma	Querist city: Ghaziabad
Mr. Gaurav, asked us:
Dear sir, If we have Rs. 10lac Stock Transferred outside state then what is the liability of tax. Please tell me
We responded as follows:
Dear Gaurav,
If you have availed facility of input tax credit in respect of purchase of such goods (if you have purchased such goods) then you have to reverse the input tax credit to the extent it has not been admissible. In U.P., clause (iii) of table of sub-section (1) of section 13 of the U.P. VAT Act, 2008 provides the amount of admissible input tax credit in cases of stock transfer. If manufactured goods have been stock transferred then amount of reverse input tax credit is to be computed for the goods used, consumed or utilized in manufacture of such goods. You may have version of the said provision on www.taxtalkindia.com or any other web site related to U.P. VAT.

Query No. 71		Querist city: GURGAON
Querist asked us:
WHAT IS WCT AND ITS APPLICABILITY
We responded as follows:
Dear Madame / sir,
WCT is the tax levied on sale of goods involved in execution of a works contract. Sale, in reference to sale of goods, is defined as the transfer of property in goods. Clause 29A of Article 366 inter alia defines transer of property in goods (whether as goods or in some other form)involved in the execution of works contract as sale of such goods. WCT is the tax on such sale. For details please go through the relevant article available on this (www.vatconcept.com) Web Site.

Query No. 70	Querist name Mr. HEMANT KUMAR	Querist city: GHAZIABAD
Mr. HEMANT, asked us:
Mr. Hemant Kumar wrote to us on 9/18/2011 12:00:00 AM as follows: Query Text: Mr. Hemant Kumar Anand wrote to us on 9/12/2011 12:00:00 AM as follows: Do we need to issue the road permit form 38 to suppliers other than UTTAR PRADESH STATE for the purchase value of consignment of Rs. 5000/- Reply Text: We responded as follows: Dear Hemant, No, Form 38 is applicable for importing goods where purchase price of goods exceeds Rs. 5,000.00. With regards from: Keshav Dayal Ex Member Tribunal, U. P. Trade Tax Dear sir , Further to above query may i request for the Government Notification no . , clause & a copy of this in regard to Form 38 exemtion for the purchase amount less than Rs. 5000/- from other state than uttar pradesh .Please advise Reply Text: We responded as follows: Dear Hemant, Notification issued under Trade Tax regime is applicable. We do not have notification with us. Dear Sir , may we request for the No. of Notification issued under Trade Tax regime in this regard
We responded as follows:
Dear HEMANT,
Sorry! You may request some law magazine office, like UPTC, NTN, etc.

Query No. 69	Querist name Mr. Hemant Kumar	Querist city: Ghaziabad
Mr. Hemant, asked us:
Query Text: Mr. Hemant Kumar Anand wrote to us on 9/12/2011 12:00:00 AM as follows: Do we need to issue the road permit form 38 to suppliers other than UTTAR PRADESH STATE for the purchase value of consignment of Rs. 5000/- Reply Text: We responded as follows: Dear Hemant, No, Form 38 is applicable for importing goods where purchase price of goods exceeds Rs. 5,000.00. With regards from: Keshav Dayal Ex Member Tribunal, U. P. Trade Tax Dear sir , Further to above query may i request for the Government Notification no . , clause & a copy of this in regard to Form 38 exemtion for the purchase amount less than Rs. 5000/- from other state than uttar pradesh .Please advise
We responded as follows:
Dear Hemant,
Notification issued under Trade Tax regime is applicable. We do not have notification with us.

Query No. 68	Querist name Mrs. ABHISHEK KUMAR	Querist city: HARDOI
Mrs. ABHISHEK, asked us:
hardoi
We responded as follows:
Dear ABHISHEK,
So what?

Query No. 67		Querist city: lucknow
Querist asked us:
For AY 05-06 , the credit notes issued by Supplier, from outside of state against CST ( as instituitonal discount/price difference} , on initial current price invoice rate for sale at lower special rate to Govt Supplies against long tern rate contract entered between supplier and Govt purchaser , are being disallowed by assessing officer ,and the credit note value is being clubbed as turnover of sale.Can We have legal view on this and any citation regards!
We responded as follows:
Dear Madame / sir,
You have stated that your query relates to U.P. VAT Law and you have mentioned that matter relates to assessment year 2005-2006. In U.P. VAT Law was introduced with effect from January 01, 2008. I could not follow your query. Would you please give complete details?

Query No. 66	Querist name Mr. Hemant Kumar Anand	Querist city: Ghaziabad
Mr. Hemant, asked us:
Do we need to issue the road permit form 38 to suppliers other than UTTAR PRADESH STATE for the purchase value of consignment of Rs. 5000/-
We responded as follows:
Dear Hemant,
No, Form 38 is applicable for importing goods where purchase price of goods exceeds Rs. 5,000.00.

Query No. 65		Querist city: noida
Querist asked us:
what is the last date of pay entry tex.and tha rate of tax on diesel purchase from delhi,
We responded as follows:
Dear Madame / sir,
The date by which a dealer is required to make payment of VAT under the U. P. VAT Act is also the last date for making payment of U. P. Entry Tax. Normally, 20th day of the month which follows the month to which entry tax relates is the last day for making payment of Entry Tax. Rate of entry tax for diesel is 5 percent of the value of diesel.

Query No. 64		Querist city: Agra
Querist asked us:
Sir, Wt is the rate of Nag\stone excluding costly nag
We responded as follows:
Dear Madame / sir,
Under U.P. VAT, precious and semi precious, both types of stones attarct tax liability of 1 percent. Please visit www.taxtalkindia.com home page link Commodity Code & Rate Finder and find tax rate for any commodity. These rates are exclusive of additional tax.

Query No. 63		Querist city: Agra
Querist asked us:
Please define local area
We responded as follows:
Dear Madame / sir,
In reference to tax on entry of goods into local area, local area is area under a local authority or local administration (LSGD), say Zila Panchayat, Town Area, Municipal area, Cantonment Board, etc. Area under Development Authority also falls under local Area. Please visit www.taxtalkindia.com home page link VAT & Other Tax Laws and then Section 2 of the U.P. Entry Tax Act. There you will find complete definition of Local Area.

Query No. 62	Querist name Mr. Subodh Kumar Thakur	Querist city: G.Noida
Mr. Subodh, asked us:
I am paying entery tax on purchase.can i take credit of entry tax paid as input tax credit.
We responded as follows:
Dear Subodh,
No, facility of claiming input tax credit is not applicable under the Entry Tax Law of U.P.

Query No. 61	Querist name Mr. CHANCHAL CHAKRABORTY	Querist city: KOLKATA
Mr. CHANCHAL, asked us:
WHAT IS THE WORK CONTRACT TAX ON COMPOSIT AMOUNT OR %, IN U.P. STATE.
We responded as follows:
Dear CHANCHAL,
In cases of civil works contracts, rate of composition is 4% of the total amount of the contract with a rider that goods in which property gets transferred cannot be brought more than 5 % from outside the Uttar Pradesh and in remaining cases it is 6% of the total amount of the contract.

Query No. 60		Querist city: bangalore
Querist asked us:
Hi, Can you confirm that the rate of interest is 1.25% p.m and has not been increased so far. Regards Bhavana Ananth
We responded as follows:
Dear Madame / sir,
For payment of interest by dealers, two types of rates of interest have been provided in the U.P. VAT Act. One is per mensum rate of 1.25 percent and other is per annum rate of 15 percent. Both rates are not equal. ??? In some of the provisions, per mensum interest is to be computed and in some of the provisions it is to be computed applying per annum rate. Both interest caannot be computed applying same rate. To our knowledge, rate of interest is unchanged. You are advised to visit www.taxtalkindia.com. On home page please visit link Computation of simple Interest.

Query No. 59	Querist name Mr. manish gupta	Querist city: raebareli
Mr. manish, asked us:
if the accounts books has been rejected by a.o.the a.o has estimated the purchase & sale.let us know weather the purchase & sale both are taxed under vat act . the nature of my business is trading of food grains business.our purchase & sale both are taxable @4%
We responded as follows:
Dear manish,
Purchase from persons other than registered dealers is also liable to tax. But if the dealer makes payment of amount of tax on purchase from unregistered dealers, he should be allowed input tax credit of such amount. Net amount of tax payable should be computed in accordance with provisions of section 15 of the U.P. VAT Act.

Query No. 58	Querist name Mrs. ramesh singh negi	Querist city: noida
Mrs. ramesh, asked us:
Dear Sir, with due respect we are a regd dealer in U.P.But we have done job work some branded customers from outside the U.P. Sir, can we are liable for TAX liability or not. we are waiting for your response asap. negi
We responded as follows:
Dear ramesh,
In cases of Job work (not involving transer of property of goods) does not attract liability of tax under U.P. VAT. But if you have done job work for customers outside U.P. and have sent goods to them after job work, you are required to submit Form F, prescribed under the Central Sales Tax Act. If your customers cannot issue Form F to you because they cannot get Form F from VAT Department of their State then ask them to write you why VAT Department in their State cannot issue Form F to them. Otherwise, in view of the judgment of the Hon'ble Supreme Court the assessing authority may treat inter-state sale of goods sent by you to your customers.

Query No. 57	Querist name Mr. kishore	Querist city: hyderabad
Mr. goteti, asked us:
Dear Sir We are under WCT contractors, please be inform us on whose favour the Works contract tax payment proofs should be issued.Either in the Taxation Officer\authority. Please do the needful. Regards Kishore
We responded as follows:
Dear goteti,
Normally, a contractor is required to make payment of VAT amount by depositing amount of VAT in nationalised Bank, authorized for accepting VAT payment. Copies of Treasury Challans are to be submitted to the Bank alongwith the amount. For this purpose, format of challan will be available on the Web Site of the concerned Commercial Tax Department. Better, you consult local office of the Commercial Tax Department.

Query No. 56		Querist city: kanpur
Querist asked us:
Can a counsel seek information under RTI Act from the assessing authority of a dealer, whose assessment records have been direced to be summoned by the Tribunal and despite several reminders and DOs by the appellate authority, the assessing authority of such a dealer is not responding?
We responded as follows:
Dear Madame / sir,
Sorry ! we do not deal with problems under RTI Act.

Query No. 55		Querist city: kanpur
Querist asked us:
I filed annual returns for 08-09 and 09-10 within stipulaed period. When I will receive the deemd assessment order? Is the Ao authorised to issue notice U/s 28 today,when thereis no discrepancy in either sale or purchase and no other adverse material available on record?
We responded as follows:
Dear Madame / sir,
Deemed assessment order is not sent to a dealer. Annual return filed by the dealer is deemed assessment order. If the department does not serve any notice within the stipulated period, the dealer is deemed assessed.

Query No. 54		Querist city: kanpur
Querist asked us:
My export sales more than 60% of toal sales.Filed annual returns for 2008-09 and 2009-10.Last return for tax period July show excess ITC of 10 lac. Am I entitled for refund immediately?
We responded as follows:
Dear Madame / sir,
You should have claimed refund in the retrun of March 2010 and then in the return for the month of March 2011. Moreover that dealers whose main business is export are entitled for claiming refund in every periodical return separately.

Query No. 53	Querist name Mr. Sudeep	Querist city: .
Mr. Sudeep, asked us:
i have a query on UPVAT. what should one do about damaged products? example: u purchase 1000 CFL lamps. while purchasing u've paid all the taxes. now after a few days u discover the 20 CFLs are broken (considering CFLs don't have any replacement for breakage nor any Credit Note is provided for the same) what will u do? is there any column or head in UPVAT where one can declare such losses and damages??
We responded as follows:
Dear Sudeep,
There is no provision for declaring damage or loss. Contrary a dealer is required to compute amount of Reverse Input Tax Credit in respect lost or damaged goods.

Query No. 52	Querist name Mr. ANIL SINGLA	Querist city: bazpur
Mr. ANIL, asked us:
I want to sell cattle feed fro bazpur (Uttarakhand) to Thakurdwara(UP)by my proprietorship firm bill, i want to know whether any sales tax and any road permit is applicable for interstate sale of cattle feed.
We responded as follows:
Dear ANIL,
Sale of cattle feed is exempt from levy of VAT. Therefore, inter-state sale of cattle feed will also be exempt from levy of tax. Form 38 (road permit) is not required for goods sale of which is exempt under the State VAT.

Query No. 51	Querist name Mrs. aditya nath mishra	Querist city: lko
Mrs. aditya, asked us:
either the vat on supply of mitti is applicable for up vat?
We responded as follows:
Dear aditya,
Yes, Sale of all goods except goods mentioned in Schedule -I is liable to tax under U.P. VAT.

Query No. 50	Querist name Mr. ANKUSH VISHNU GAWADE	Querist city: MUMBAI
Mr. ANKUSH, asked us:
Dear Sir, I am a Propritor & my nature of business is Job Work ( Distilation Charges ) of Chemicals. All materials is suppling by the party. We use LDO for our boiler machine for job work only. Please Let me know whether we have collect wct from party. Pl. let me know the above Job Work follows uner Work Contract? Kindly give me the sollution on the above subject.
We responded as follows:
Dear ANKUSH,
Provisions of Tax Deduction at Source (TDS) towards WCT do not apply in your case. You are not required to collect any tax from your customers.

Query No. 49	Querist name Mr. SANDEEP SINGH	Querist city: NEW DELHI
Mr. SANDEEP, asked us:
Sir,my query is: An individual has engaged a civil contractor(regd.) in Greater Noida for renovatoion/construction work of his flat and the total contract price is about 18 lacs only. What will be the Vat liability in this case.
We responded as follows:
Dear SANDEEP,
In works contract cases, the person who executes the contract is liable for payment of tax. Here, civil contractor will be liable for payment of VAT. Individual cannot make tax deduction. Contractor will compute tax on sale of various goods involved in the execution of the contract. For computation of VAT, please visit this Site (www.vatconcept.com) web page Tutorials on Indirect Taxes.

Query No. 48	Querist name Mr. Sanjay Srivastava	Querist city: Lucknow
Mr. Sanjay, asked us:
Dear sir Thanks for give our query response. Now , can in less the discount received on ex up purchase on target achivement in our ex up purchases. supose our ex up purchase is 100000.00 and discount on target achivement is 20000.00 so the purchase value is 80000.00. please sugges to me. sanjay srivastava
We responded as follows:
Dear Sanjay,
Query is debatable. In my personal opinion, in the Central Sales Tax Act, purchase price has not been defined. Therefore, purchase price will be the amount which represents sale price.

Query No. 47	Querist name Mr. ANKUSH VISHNU GAWADE	Querist city: MUMBAI
Mr. ANKUSH, asked us:
Thanks for reply. Dear Sir, Pl. refer my earlier mail. The Gujrat co's is not our branch,Depot or Head office . This co is having separate identity. In this case F- form is applicable ? Normally f- form gives to branch or depot. Pl revert back.
We responded as follows:
Dear ANKUSH,
Section 6-A of the Central Sales Tax Act, 1956 speaks about transfer of goods by a dealer to his own business place, to his agent or to his principal but in case of Ambica Steels before the Hon'ble supreme Court, job work was done by Ambica Steels for other persons. Therefore, in your case also, Form F will be required. However, if the transferee proves that Form F could not be issued to him by the Department, then in transferor case other evidences may be considered.

Query No. 46	Querist name Mr. SURAJ KUMAR SINHA	Querist city: NOIDA
Mr. SURAJ, asked us:
We are in process to setup a SEZ unit @ NSEZ, please tell me the WCT applicability on the contractor working for us at SEZ site. If WCT is applicable to them @ which rate we have deduct @ 4% (any surcharge or cess) or any other rate Please confirm. Can our contractor obtain any WCT exception certificate from SEZ.
We responded as follows:
Dear SURAJ,
Unless the contractor produces no deduction certificate from his assessing authority, it is mandatory for you to make deduction @4% from payments made to contractor as WCT TDS and to deposit it into Govenment Treasury. For this either you should be a registered dealer or you should obtain Tax Deduction Number from your assessing authority.

Query No. 45	Querist name Mr. ANKUSH VISHNU GAWADE	Querist city: MUMBAI
Mr. ANKUSH, asked us:
Dear Sir. My co. is Thane. I have to do Job work of Gujrat Party. Whether any declaration is required? Pl. let me know.
We responded as follows:
Dear ANKUSH,
Related to inter-state movement of goods, there may be two kinds of declarations. First kind of declarations are the declarations which provide relief or concession in tax and second kind of declarations are those which are required under check-post provisions of involved States. As it relates to tax levy, job work does not attract levy of tax on sale because there is no sale but in absence of Form F, movement of goods may be treated an inter-state sale as provided in section 6-A of the Central Sales Tax Act, 1956. The Hon'ble Supreme Court in case of Ambika Steels has held that Form F is required in respect of goods received and returned. Therefore, you may be required to issue Form F in respect of goods received for job work and to receive Form F in respect of fabricated goods sent to Gujarat company. I do not know about the check-post provisions applicable in Maharastra and Gujarat. You can enquire from local dealers or authorities.

Query No. 44	Querist name Mr. Sanjay Srivastava	Querist city: Lucknow
Mr. Sanjay, asked us:
Dear sir, Please Suggest that which notification or circular has come to additonal tax charge in Central sale made Without Form C in UP Vat Act. I have no any circular or notification. please sugges to me thanking you sanjay srivastava
We responded as follows:
Dear Sanjay,
There is neither a notification nor a circular. They are not needed in view of the provisions of section 8 of the Central Sales Tax Act, 1956. Sub-section (2) of section 8 runs as follows: "The tax payable by any dealer on his turnover insofar as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1), shall be at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State." The Hon'ble Supreme Court in its one of the important judgments has held that additional tax is nothing but enhancement in rate of tax.

Query No. 43		Querist city: vizag
Querist asked us:
are we suppose to get registered for WORK CONTRACT TAX? what is the amount of tax to be charges? is it the same throughout INDIA? IF the work contract is done in another state then what will be the tax amount to be charged? And what are the legal formalities for it?
We responded as follows:
Dear Madame / sir,
In cases of works contract, property in goods, which are incorporated in the works contract, gets transferred from contractor to contractee. For the purpose of tax on sale or purchase of goods, there is a deemed sale of such goods by the contractor to the contractee. In most of the States, tax is computed by applying normal rate of tax prescribed for sale of such goods in case of ordinary sale of such goods. Where contract is executed in other State, it may involve sale of such goods in other State as well as sale in the course of inter-state trade or commerce. If there is inter-state sale, then tax will be computed applying rates of tax applicable in the State of dispatch of goods. In cases of works contract, sale price of goods is not separately available. Therefore, tax cannot be charged on sale of goods.

Query No. 42	Querist name Mr. Sanjay Srivastava	Querist city: Lucknow
Mr. Sanjay, asked us:
To, Commissioner Commercial Tax Deparetment Lucknow Sub:- Additional Tax Charge or Not on CST Sale without Form 'C' Dear sir, with reference to above i am interest to know that the Additional Tax on Normal Central Sale to be charged or not. Please Suggest. Sanjay Srivastava
We responded as follows:
Dear Sanjay,
Additional Tax is also payable on inter-state (central) sale of goods where sale is made without Form C. This Web Site is not official web site of Commercial Tax Department.

Query No. 41		Querist city: mumbai
Querist asked us:
sir we have sent golf cart to noida with road permit but by mistake our warehouse incharge forget to fill bill amount, no. of pkg and bill no. in road form now our transport caught by sales tax department so please suggest how we can release our transport as soon a possible from there please reply
We responded as follows:
Dear Madame / sir,
A show cause notice would have been issued to the driver. You should submit reply to it to the officer who has issued notice. Non filling of bill no and date on Form 38 has been interpreted as an attempt to evade payment of tax. In such cases normally, officers seize goods and demand security for release of goods. After you deposit security goods will be released.

Query No. 40		Querist city: chennai
Querist asked us:
Respected Shri Keshav Dayalji, Ex Member Tribunal, U. P. Trade Tax. Sir, Thank you very much for your immediate response for my query no.'FQ24pradeep raj7/31/2011' Your clarification had helped me to decide suitably. Thanking you once again, Alausius.
We responded as follows:
Dear Madame / sir,
Thank you sir for using our services.

Query No. 39	Querist name Mr. Sushil Kumar	Querist city: lucknow
Mr. Sushil, asked us:
The name I want to opt for UPVAT registration is already registered. Can I still register the same name
We responded as follows:
Dear Sushil,
There is no bar in U.P. VAT.

Query No. 38	Querist name Mr. Ashish Mittal	Querist city: Delhi
Mr. Ashish, asked us:
Dear Sir, ihad following questions with regard to UP Entry tax: 1) What is the relevance of FORM-D and who can issue it? 2) If a dealer make purchase of steel from a manufacturer, whether entry tax has to be paid even though both manufacturer and purchaser is located in same locality/vicinity?
We responded as follows:
Dear Ashish,
Form D is meant for claiming exemption from entry tax on goods which have already suffered levy of entry tax. Entry tax is payable where goods are brought or received from any place outside the local area.

Query No. 37	Querist name Mr. Ashish Mittal	Querist city: Delhi
Mr. Ashish, asked us:
Dear Sir, i had a query with regard to UP VAT laws. One of my client company is a works contractor registered under UP VAT Act in composition scheme. I had following query with regard to UP VAT laws: 1) Whether a works contractor opting for composition scheme has to to pay purchase tax on purchase from unregistered dealer? 2) Whether details of local purchase is to be shown in quarterly return of a works contractor who had opted for composition scheme?
We responded as follows:
Dear Ashish,
In my opinion, purchase by a contractor opting composition scheme from persons other than registered dealers is liable for payment of tax on such purchases. Purchases are to be disclosed in returns.

Query No. 36	Querist name Mr. Sanjay Yadav	Querist city: Gorakhpur
Mr. Sanjay, asked us:
Whether purcsases of Rail Steel Joist Pole,MSH Beam and Cross Arms,Top Channel,Claims used in MSH Beam for double Circuit 33 KV transmittion line in construction power,are liable to entry tax. Whetehr these fall under the category of Iron and steel or not. Advise sir
We responded as follows:
Dear Sanjay,
Please visit www.taxtalkindia.com. A link on home page gives list of all goods which attract levy of entry tax in U.P. Only the species, of iron-steel, which are covered by section 14 of the Central sales Tax Act, 1956 fall under declared goods.

Query No. 35	Querist name Mr. ashish kumar khare	Querist city: Ghaziabad
Mr. ashish, asked us:
form 38 eligible for purchase of VAT Exempt goods in Uttar Pradesh
We responded as follows:
Dear ashish,
Form 38 is used for for transporting goods from any place outside U.P. to any place in U.P. for the goods which are taxable in U.P. Form is used like a road permit.

Query No. 34		Querist city: mumbai
Querist asked us:
fixed assets, please let me know the vat credit applicable for each. I have recorded vat separately in some ledgers and in some I have capitalized the entire amount.
We responded as follows:
Dear Madame / sir,
Facility of Input Tax Credit, in respect of capital goods, is available if the same have been purchased after the date of implimentation of the VAT. Facility of availablity of Input tax credit is subject to certain conditions and restrictions. It is allowed on the basis of Tax Invoice and not on the basis of entries in records.

Query No. 33		Querist city: Gorakhpur
Querist asked us:
we have ordered to purchases iron and steel to a dealer in U.P. but the delear has purcased from out of state and consigned the goods to us and use of our form-38 also and sale was covered under E-1 transaction. who will pay entry tax delear or our company? or dealer first paid entry tax and collect from us and provide from D. Please advise accordingly sir
We responded as follows:
Dear Madame / sir,
Tax, on entry of goods into any local area, is payable by a person who brings or receives goods within that local area. Since you have issued your Form 38, you are the person who is importing goods. You will be liable to pay entry tax.

Query No. 32		Querist city: Mumbai
Querist asked us:
set off against vat
We responded as follows:
Dear Madame / sir,
Please clarify your query.

Query No. 31	Querist name Mr. Mohanraj	Querist city: CHENNAI
Mr. Mohanraj, asked us:
Party Providing Material WCT avoid possible
We responded as follows:
Dear Mohanraj,
If contractee provides material and value of material is not part of total amount of contract, then the contract does not fall in the category of a works contracts involving transfer of property in goods involved in the execution of the works contract. In these circumstances there is no liability of tax on sale of goods under VAT.

Query No. 30	Querist name Mr. mukesh kumar goel	Querist city: mukesh kumar goel
Mr. delhi, asked us:
Sir, I m manufacturer in uttranchal ; is there any law in uttranchal vat that a manufacture of electronic good can sale his product outside uttranchal for trading after charging 2 percent tax,without C form.
We responded as follows:
Dear delhi,
On inter-state sales, tax is levied under the Central Sales Tax Act, 1956. State Government cannot make a provision under State VAT Act in respect of rate of tax on inter-state sales. However, State Government can reduce tax on inter-sttae sales by issuing a notification under section 8(5) of the Central Sales Tax Act, 1956. But the State Government while doing so cannot waive the condition of requirement of Form C. If there is any notification issued by the State Government of Uttarakhand then it is not in my knowledge. Kindly visit official web site of Commercial Tax Department of Uttrakhand.

Query No. 29	Querist name Mr. pawan kumar verma	Querist city: chandpur
Mr. pawan, asked us:
i want know how many coal consumption in a high draft bricks field as per U.P. Vat act consumption ratio in 1000 bricks
We responded as follows:
Dear pawan,
U.P. VAT Act does not prescribe coal consumption. Again coal consumption depends upon so many factors.

Query No. 28	Querist name Mr. Pawan Kumar Mishra	Querist city: Bulandshahr
Mr. Pawan, asked us:
Whether deduction of WCT is to be made by a company on the works contract (i.e. construction of Immovable property in nearby village) awarded on welfare activity. In the given case, the property in goods during the execution does not pass on to the company.
We responded as follows:
Dear Pawan,
In case of a works contract, property in goods passes from contractor to the contractee at the time of incorporation of goods in the works. So it is wrong to say that property does not pass during execution of the contract. It is mandatory to make tax deduction towards liabilty of works contract tax payable by the contractor. But provisions of tax deduction do not apply if contract is purely a contract of labour and other services. Such contract does not involve transfer of property in goods involved in the execution of the contract.

Query No. 27	Querist name Mr. ROHIT KUMAR SINGH	Querist city: DELHI
Mr. ROHIT, asked us:
SIR PLEASE TALK TO ME THAT IS TURNOVER OF QUARTELY, MONTHLY & YEARLY UP VAT RETURN, THANKING YOU,
We responded as follows:
Dear ROHIT,
In reference to sales tax or VAT, turnover means affregate of sale prices of all goods sold during a period. Such period may be a month, a quarter of financial year or a financial year. If turnover is computed for a calendar month, then it is monthly turnover, if computed for a quarter of any financial year (period of three consecutive calendar months ending on June 30, September 30, December 31 or March 31), then it is quarterly turnover and likewise when it is computed for whole of the financial year, then it is yearly turnover.

Query No. 26		Querist city: lucknow
Querist asked us:
Sir i want to know that what is the penalty for losting form 38(Road permit)
We responded as follows:
Dear Madame / sir,
There is no penalty but you have to furnish indemnity bond for compensating loss of revenue that may be caused if form is misused by any person for importing goods.

Query No. 25	Querist name Mr. vinay mishra	Querist city: allahabad
Mr. vinay, asked us:
Dear sir, i want to purchase networking products from delhi and i have no CST but i have UPTT and TIN No.. please suggest me that can i purchase items without form c. and what about road permit for this item from delhi to allahabad(UP). Thankyou
We responded as follows:
Dear vinay,
You can purchase items. For making inter-state purchase, it is not neccessary that a person or dealer should hold Registration Certificate granted under the Central Sales Tax Act, 1956. Secondly, since you hold TIN, you can use Form XXXVIII (Road Permit).

Query No. 24		Querist city: chennai
Querist asked us:
Respected Shri Keshav Dayalji, Ex Member Tribunal, U. P. Trade Tax. Sir, Thank you very much for your immediate response for my query no.'FQ21pradeep raj7/28/2011. I understand from my Chennai dealer that his Gujarat supplier will wait for his C form which he will be sending to him after his (the Dealer) receiving the CST Registration certificate from the sales tax department. This being the background, I shall be much thankful if you can kindly inform me whether there will be any Checkpost problem during tranportation of machine from Gujarat to Chennai as the Invoice of the Gujarat Supplier being raised on the Chennai dealer will not have any CST registration number of the dealer. If so, how the Invoice is to be raised? Please advice, Thanking you, Alausius
We responded as follows:
Dear Madame / sir,
I would like to suggest that copy of official receipt issued by the Commercial Tax Department / VAT Department in respect of submission of application for obtaining registration certificate should be annexed with the invoice and on invoice words "applied for" should be mentioned.

Query No. 23		Querist city: bareilly
Querist asked us:
sir, i am working in a manufacturing unit my query on ITC , Opening Balance of ITC is Rs. 500000/- Tax on Purchase from Unregd. Dealer is Rs. 450000/- and tax on sale is nil because all sale is against form "H", so please guide to us what is the tax liability to be deposited and what is the amount of itc to cary forward to next period.
We responded as follows:
Dear Madame / sir,
Sales against Form H are considered sales in the course of export of the goods out of the territory of India and therefore, full amount of ITC will be available in respect of purchase of goods. Therefore, in respect of purchase, ITC of an amount equal to amount of tax payable on purchase i.e. Rs450,000/- will be available and be claimed. This ITC will be claimed in the tax period in which purchase has been made.

Query No. 22		Querist city: BUDAUN
Querist asked us:
WHAT IS THE COMMODITY CODE FOR ICE-CREAM,FROZEN DESSERTS AND ICE-CANDY.
We responded as follows:
Dear Madame / sir,
Please visit Commodity Code & Rate Finder link on Home page of www.taxtalkindia.com.

Query No. 21		Querist city: chennai
Querist asked us:
Dear sir, I am running a factory in chennai and got TNGST & CST tax registration Nos. I would like to purchase a machine from a dealer who has recently started his proprietory firm. He has already applied for the Sales tax registration certificates and is yet to receive the TNGST & CST Nos. Since this machine is to be bought from Gujarat manufacturer (who is already got CST registration in Gujart) by the dealer in chennai and as my requirement is urgent, is it possible for me to get the machine from the dealer on E- 1 Sales(Inter state sales. Please reply. Thanking you. Alausius
We responded as follows:
Dear Madame / sir,
In the case, Gujarat manufacturer will make first inter-state sale to a dealer who has applied for CST registration. The dealer will make inter-state sale to you by transfer of documents of title to goods. In the transaction, dealer, for claiming exemption on sale by him, is supposed to obtain Form E-1 from Gujarat Manufacturer and after he furnishes Form C to Gujarat manufacturer. You are supposed to issue Form C to the selling dealer. Since you hold registration certificate, there is no problem with you. You can make purchase. In case of dealer, since he has applied for grant of registration, registration certificate will take effect, if for any reason his application is not rejected, from the date on which application was submitted. In the case, it is to be seen that whether manufacturer of Gujarat is ready to wait for accepting Form C till the registration is granted to the dealer. If he agrees, then there is no problem.

Query No. 20	Querist name Mr. pradeep singh	Querist city: NOIDA
Mr. PRADEEP, asked us:
Dear Sir, My query is that we are a manufacturing concern and we are registered in excise. But our customer is not willing to pay excise duty as he cann't get the credit. He is suggesting us to charge Work contract tax and vat to save the tax liability. So please suggest us that can we charge WCT and VAT in place of Excise. Regards Pradeep Singh 9711113455
We responded as follows:
Dear PRADEEP,
If you are selling manufactured goods, then it is not a works contract and you have to pay excise duty and VAT, both.

Query No. 19	Querist name Mr. nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, We are manufacturers and suppliers of raxin footwear which are vat exempted under u.p. Vat rules We have to sell these to out side U.P. then what will be central tax or any tax on our goods Also if our buyer outside U.P. is not registerd dealer then is it possible to sell him our goods pl advise Regards
We responded as follows:
Dear Nadeem,
Goods sale of which is unconditionally exempt from levy of tax when they are sold within the State, Inter-state sale of such goods is also exempt from levy of tax under the Central Sales Tax Act. In such cases, selling dealer will not charge tax on sale invoice. It is not matter whether sale is being made to registered dealer or unregistered dealer.

Query No. 18	Querist name Mr. pradeep singh	Querist city: NOIDA
Mr. PRADEEP, asked us:
Please suggest me works contract tax can be used in case of manufacturing unit to save excise duty. praddeep singh 9711113455
We responded as follows:
Dear PRADEEP,
Sorry ! I could not follow you. Would you please explain?

Query No. 17	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, we are manufacturers and supplier of raxin footwear which are Vat Exempted under U.P. Vat Rules We have to sale these goods to out side U.P. then is there any tax we will include in Invoice if yes what % is applicable in central sale of pl. advise Awaiting for your early reply Regards
We responded as follows:
Dear Nadeem,
Goods sale of which is unconditionally exempt from levy of tax when they are sold within the State, Inter-state sale of such goods is also exempt from levy of tax under the Central Sales Tax Act. In such cases, selling dealer will not charge tax on sale invoice.

Query No. 16	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, we are manufacturers and supplier of raxin footwear which are Vat Exempted under U.P. Vat Rules We have to sale these goods to out side U.P. then is there any tax we will include in Invoice if yes what % is applicable in central sale of pl. advise Awaiting for your early reply Regards
We responded as follows:
Dear Nadeem,
Goods sale of which is unconditionally exempt from levy of tax when they are sold within the State, Inter-state sale of such goods is also exempt from levy of tax under the Central Sales Tax Act. In such cases, selling dealer will not charge tax on sale invoice.

Query No. 15	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Regarding ur reply of our query no. FQ7Nadeem7/19/2011 I have visited your stated website where require two option first assesment year and other assesment year what we have to choose other question is section 42 regund claim what is this claim pl. advise best Regards
We responded as follows:
Dear Nadeem,
First assessment year is the first financial year for which you are required to submit return. Normally it is the financial year during which assessee starts his business. Second and subsequent assessment years will fall under other assessment year. In U.P. before introduction of VAT, certain manufacturing units were getting benefit of exemption from tax as new units. After implementation of VAT, benefit of exemption for such units have been withdrawn and these units are required to collect and deposit tax. In lieu of exemption, these units have been permitted to claim refund of specified amount if they obtain certificate of entitlement from the Commissioner. Section 42 deals with such refund.

Query No. 14	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Regarding ur reply of our query no. FQ7Nadeem7/19/2011 I have visited your stated website where require two option first assesment year and other assesment year what we have to choose other question is section 42 regund claim what is this claim pl. advise best Regards
We responded as follows:
Dear Nadeem,
Please refer to your earlier query.

Query No. 13	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Nadeem, Please visit www.taxtalkindia.com. On home page use link UPVAT Return Liability. Fill in details and get your liability for submitting reurn. I have visited your stated website where require two option first assesment year and other assesment year what we have to choose other question is section 42 regund claim what is this claim pl. advise best Regards
We responded as follows:
Dear Nadeem,
First assessment year is the first financial year for which you are required to submit return. Normally it is the financial year during which assessee starts his business. Second and subsequent assessment years will fall under other assessment year. In U.P. before introduction of VAT, certain manufacturing units were getting benefit of exemption from tax as new units. After implementation of VAT, benefit of exemption for such units have been withdrawn and these units are required to collect and deposit tax. In lieu of exemption, these units have been permitted to claim refund of specified amount if they obtain certificate of entitlement from the Commissioner. Section 42 deals with such refund.

Query No. 12	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Nadeem, Please visit www.taxtalkindia.com. On home page use link UPVAT Return Liability. Fill in details and get your liability for submitting reurn. I have visited your stated website where require two option first assesment year and other assesment year what we have to choose other question is section 42 regund claim what is this claim pl. advise best Regards
We responded as follows:
Dear Nadeem,
First assessment year is the first financial year for which you are required to submit return. Normally it is the financial year during which assessee starts his business. Second and subsequent assessment years will fall under other assessment year. In U.P. before introduction of VAT, certain manufacturing units were getting benefit of exemption from tax as new units. After implementation of VAT, benefit of exemption for such units have been withdrawn and these units are required to collect and deposit tax. In lieu of exemption, these units have been permitted to claim refund of specified amount if they obtain certificate of entitlement from the Commissioner. Section 42 deals with such refund.

Query No. 11	Querist name Mr. Dinesh Sharma	Querist city: New Delhi
Mr. Dinesh, asked us:
Dear Sir, If Stock Transfer from Delhi to Jaipur without any Way Bill , so in this case is it any sale tax liabilities.???
We responded as follows:
Dear Dinesh,
Form F is mandatory otherwise transfer will be treated a sale in the course of inter-state trade or commerce and tax will be levied on inter-state sale of goods.

Query No. 10		Querist city: ghaziababad
Querist asked us:
IS tds is applicable on supply of newspaper monthly by the newspaper agency?
We responded as follows:
Dear Madame / sir,
It is a simple sale of newspaper. Neither it is a works contract nor a service. In my opinion, provisions of TDS do not apply.

Query No. 9	Querist name Mr. VIVEK BARANWAL	Querist city: SULTANPUR
Mr. VIVEK, asked us:
Sir Please provide information related to vat audit 1. On how much turnover we will have to get audit of our books. shall it include consignment transfer, etc 2. If total sale during the year is less than 1 crore but purchase from Ex Up (capital machinery item) is more than 1 crore. whether book should be audited or not. Please answer point wise Regards Vivek
We responded as follows:
Dear VIVEK,
Please see Explanation of sub-rule (4) of Rule 42 of the U.P. VAT Rules, 2008. Rules are available with www.taxtalkindia.com. In short, for computing turnover, for the purpose of audit, following will be included (i) Turnover of purchases of taxable goods where such purchases have been made from unregistered dealers or persons; and (ii) turnover of all kinds of sales of all other goods including sale of goods sold outside the State.

Query No. 8	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, We are in two kinds of manufacturing and supply process one is VAT Exempted is raxin footwear and other is leather belts which is 5% Vat We supply these products across the country pl. inform if we have to sale these goods to a unregisterd dealer outside U.P. then which invoice we have to use Tax invoice or Sale invoice also in this case there is necessary to get CST or we can send through our Vat Num. Awaiting for your early reply best regards
We responded as follows:
Dear Nadeem,
You are required to issue sale invoice in case sale to a person other than a registered dealer.

Query No. 7	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, Pl. inform at which turnover annual we have to sent saletax return monthly generally we always send saletax return on quarterly mode Awaiting for your early reply best Regards
We responded as follows:
Dear Nadeem,
Please visit www.taxtalkindia.com. On home page use link UPVAT Return Liability. Fill in details and get your liability for submitting reurn.

Query No. 6	Querist name Mr. Kailash K mundra	Querist city: Bhiwandi
Mr. Kailash, asked us:
Can we adjust the CST Reversal which is pertaining to more than Six Month if that reversal is because of Rate Difference.
We responded as follows:
Dear Kailash,
Since it is not a case of goods return, therefore, it can be done but in annual return.

Query No. 5		Querist city: delhi
Querist asked us:
IS wct applicable on the printing of the letter head of the organisation?
We responded as follows:
Dear Madame / sir,
Yes, Provision of tax deduction at source (TDS WCT) is applicable.

Query No. 4	Querist name Mr. Nadeem Khan	Querist city: Kanpur
Mr. Nadeem, asked us:
Dear Sir, How to check the quarterly return value and what tax paid by a firm in this quarter Is there any online link to check these status awaiting for your early reply Thanks
We responded as follows:
Dear Nadeem,
There is no provision for it.

Query No. 3		Querist city: NEW DELHI
Querist asked us:
DEAR SIR, A BUILDER HAS ENGAGED A CONTRACTOR FOR CIVIL CONSTRUCTION WORK (WITH MATERIAL) EXCEPT CEMENT & STEEL WHICH BUILDER SUPPLIES TO THE CONTRACTOR FREE OF COST. THE BUILDER ALSO DEDUCTS 4%wct.IN THIS CASE HOW THE BUILDER WILL BE ASSESSED TO U.P.VAT. WHETHER HE HAS TO FILE RETURNS ALSO ?IF YES FOR WHAT VALUE ? WHETHER THE BUILDER WILL HAVE TO PAY VAT ON HIS PROFIT MARGIN ALSO?
We responded as follows:
Dear Madame / sir,
Under U.P. VAT, in cases of works contracts, turnover of sale of goods is determined in accordance with provisions of Rule 9 of the U.P. VAT Rules, 2008. If cost of cement and Iron-steel is made available by the builder to the contractor free of cost and such price is not part of contract amount, there is no sale on the part of the builder to the contractor but where builder is constructing house or flat of a customer, there will be sale of such goods to the customer. In this case, builder has to pay tax. 4% amount deducted from payments made to contractor is the money of the contractor and benefit of it cannot be given to the builder. Builder, if he is liable for payment of tax, then he will have to pay tax on value of goods and amount of profit on such goods. I would like to suggest that you should consult expert along with copies of contracts.

Query No. 2		Querist city: Ghaziabad
Querist asked us:
Sir, Kindly provide me the commodity code list mentioning the schedule & tax structure also, waiting for your reply. Regards
We responded as follows:
Dear Madame / sir,
Please visit www.taxtalkindia.com. On home page of this Web Site, visit link "Commodity Code & Rate Finder. You will find there all what you require.

Query No. 1	Querist name Mr. Keshav Dayal	Querist city: Noida
Mr. Keshav, asked us:
I have posted my query before July 13, 2011. I am unable to view reply to my query. Kindly suggest.
We responded as follows:
Dear Keshav,
This is a new page for query & reply. Answers to all queries posted upto July 13, 2011 are available on earlier page of the the Web Site www.vatconcept.com. Please visit link "Know What Others Have Asked" link available on Home Page of the Site. You will get answer to your query on Earlier Page No. TWO.