KNOW WHAT OTHERS HAVE ASKED

BACK

SEND YOUR SMALL QUERY





Query No. 1Querist name    Miss sumalathaQuerist city:  BANGALORE
Miss  sumalatha, asked us:
        I need information on central sales tax forms.
We responded as follows:
Dear sumalatha,
        Kindly visit www.taxtalkindia.com. Use Login services. Visit link CST (Central) Rules. See Rule 12. Rule 12 of the Central Sales Tax (Registration & Turnover) Rules, 1957 gives complete account of Forms prescribed under the Central Sales Tax Act, 1956. There are also other Central Sales Tax Rules framed by the respective State Governments. Form of tax treturn has been prescribed by each State under these rules. Hope that we will be able to bring an article on the subject soon.



Query No. 4Querist name    Mr. SUNIL KUMARQuerist city:  noida
Mr.  sunil, asked us:
        Dear Sir/Madam, I know in a Real Estate Company or other organization how to maintain Work Contract (Mean how to calculate it & which is last dated in Deposit to Bank & last date for filing return. And where is applicable monthly/Quarterly/Half Yearly/Yearly return and its deposited time. Thanking you Sunil
We responded as follows:
Dear sunil,
        Please visit www.taxtalkindia.com login services. There you will find desired information.



Query No. 5Querist name    Mr. Ravi Kumar SharmaQuerist city:  Ghaziabad
Mr.  Ravi, asked us:
        Sir, Please Define What is the tax or exempt of below noticed item in U.P. Trade-Tax/Sales-Tax not in VAT ; 1. Neem Pati 2. Neem D.O.C. 3. Neem Oil Please with reference of Cirrcular or guidence so i proof of my assessing authority.
We responded as follows:
Dear Ravi,
        Please visit www.taxtalkindia.com login services. There you will find tax rates. At present we are not dealing in old law of trade tax.



Query No. 6Querist name    Mr. LITU BISWAL Querist city:  GURGAON
Mr.  LITU, asked us:
        I am working in a Car (new) Transport company. problem it now a days my Drivers are facing in Behti issues those are going from Delhi - Uttrakhand via UP. 1 - i would like to Know the Checkpost where behti is being done 2 - Also how will i able to do behti through online via internet. regards
We responded as follows:
Dear LITU,
        In U. P. Check posts have been abolished. Behatis are not issued by the department. For Behati, you have to visit Web site of Commercial Tax Department of U. P. with Domain http://comtax.up.nic.in. On home page, in the center, you will find a link styled as Transit Declaration Form. Use this link and follow the instruction for downloading Behati.



Query No. 7Querist name    Mr. Vikas MendirattaQuerist city:  Faridabad
Mr.  Vikas, asked us:
        What is the rate of entry tax in UP if Diesel Generating Set is Purchased from Outside the state
We responded as follows:
Dear Vikas,
        In U. P. Entry Tax is not payable on entry of Diesel Generationg Set under the U.P. Tax on Entry of Goods into Local Areas Act, 2007.



Query No. 8Querist name    Mr. Vikas MendirattaQuerist city:  Faridabad
Mr.  Vikas, asked us:
        What is Rate of Entry TAx on th diesel Generating Set of Rs 10 Lac or More.
We responded as follows:
Dear Vikas,
        Before June 01, 2009, in U. P. Entry Tax was leviable on Machinery and spare parts of machinery valuing Rupees ten lakhs or more. Now, entry tax is not leviable on machinery. Entry Tax is leviable on only limited items and Diesl Generationg Set does fall among them. Therefore, Entry Tax is not leviable on Diesel Generating St.



Query No. 9Querist name    Mr. ALOK K GARGQuerist city:  KASGANJ
Mr.  ALOK, asked us:
        A RICE MANUFACTURING UNIT WRONGLY CALCULATE THE TAX AND INPUT TAX CREDIT IN ASSESSMENT YEAR 2008-2009. THE ANNUAL RETURN OF THE FIRM FILLED CORRECTLY AND SHOW REFUND OF RS 436153/- BUT THIS REFUND CANNOT BE VERIFIED WITH LAST TAX PERIOD RETURN (MARCH 2009) BECAUSE THIS FORM NO 24 FILLED WRONGLY.ALL THE FORM NO 24 FILLED WRONGLY AND CALCULATION OF TAX IS WRONG BUT THE ANNUAL RETURN SHOWS ACTUAL PICTURE. IN THIS CASE WHAT I DONE. SHOULD I FILE ALL FORM NO 24 REVISED.
We responded as follows:
Dear ALOK,
        There is no question of filing of revised monthly returns. Also time for filing revisted periodical returns has expired long back. Now only after regular assessment you will be able to claim input tax credit as determined by the Assessing Authority.



Query No. 10Querist name    Mr. Nitin AgarwalQuerist city:  Noida
Mr.  Nitin, asked us:
        Please tell me wct rate.
We responded as follows:
Dear Nitin,
        WCT is the amount of tax which a contractor is required to pay in respect of goods which have been incorporated in any form in the works executed. Where in a State, separate rate for computing such tax has not been prescribed, such amount of tax is computed at the rates applicable to such goods under the VAT law of the concerned State. Often people get confused WCT rate with rate of VAT TDS (tax deduction at source towards VAT liability) in cases of works contracts. VAT TDS rate in U. P. is 4 % of gross amount receivable. Amount deducted by contractee by way of VAT TDS is adjusted towards WCT.



Query No. 11Querist name    Mr. dilip upadhyayQuerist city:  mumbai
Mr.  Dilip, asked us:
        please tell me by giving one simple practical example of computing service tax and vat liability in case of work contractor.
We responded as follows:
Dear Dilip,
        Please go through the article WCT: How to compute works contract tax (wct)? available on www.vatconcept.com web site, under link READ & EXPRESS YOUR VIEWS. This link is available on Home Page of the site. Please go through the article and if you feel any difficulty leave details of your problem on that page itself.



Query No. 12Querist name    Miss Vineeta RawatQuerist city:  U.P.
Miss  Vineeta, asked us:
        what is the rate of u.p. vat?
We responded as follows:
Dear Vineeta,
        Rates of tax for VAT goods are 1 percent, 4 percent, 12.5 percent. Schedule I deals in goods exempt from levy of tax. Additional tax is leviable at the rate of one percent. There are few goods which ahve been kept outside VAT. Rates of tax for these goods are different like in other States. For tax rates, please visit www.taxtalkindia.com.



Query No. 13Querist name    Mr. SANJAY AGARWALQuerist city:  bareilly
Mr.  sanjay, asked us:
        can i get c-form to bring machine from other state for my manufacturing unit which will be used for manufacturing purpose only not for sale. i have an tin no. as well as cst number and at the same time i have opted for the composition scheme.
We responded as follows:
Dear sanjay,
        Ensure that Machinery or machine word is mentioned in your Central Registration Certificate under the head goods required for use in manufacture or processing of goods for sale. If it is mentioned then you are entitled to purchase machine against use of Form C otherwise not.



Query No. 14Querist name    Mr. DEVENDRA DANGQuerist city:  KANPUR
Mr.  DEVENDRA, asked us:
        WE HAVE PURCHASED GITTI,MAURANG ETC FROM UNREGISTERED DEALERS FOR CONSTRUCTION OF FACTORY BUILDING. DO WE HAVE TO PAY PURCHASE TAX ON THESE PURCHASES.
We responded as follows:
Dear DEVENDRA,
        In Uttar Pradesh, any transaction, of purchase or sale, which is ancillary to or is connected with or is incidental to, or results from such trade, commerce, manufacture, adventure or concern, also comes within the definition of business. So if you are a dealer then you will be liable for payment of tax.



Query No. 15Querist name    Mr. anuj sharmaQuerist city:  modinagar
Mr.  anuj, asked us:
        sir what is current rate list of up vat
We responded as follows:
Dear anuj,
        Please visit our other web site www.taxtalkindia.com. There you will find facility for searching VAT rates in U.P. Also if you create your username & password, then you will be able to get the lists of items which or exempt or are taxable @1%, 4%, etc. In addition to these rates, Additional Tax is also payable. Rates of additional tax are provided separately on the same Web Site.



Query No. 16Querist name    Mr. prabhu das Querist city:  lucknow
Mr.  prabhu das , asked us:
        please get the rate UP vat tax on old item sale i.e,T.V Car Air Conditioner etc
We responded as follows:
Dear prabhu das ,
        In U. P., sale of used motor vehicles attarcts VAT liability of 4% in addition to additional tax. All other items fall under the category of unclassified items and sale of such items attracts VAT liability of 12.5 % in addition to Additional Tax.



Query No. 17Querist name    Mr. anuj jainQuerist city:  Delhi
Mr.  Anuj, asked us:
        Dear sir, I want to know if any part of contract is done though sub contracting wether the vat libility comes to the sub contractor. The both the parties have gone for composition scheme. Regard
We responded as follows:
Dear Anuj,
        Where main works contractor awards sub-contracts, property in goods is transferred by sub-contracts directly to the contractee. Sale takes place in between sub-contractor and contractee. Therefore, sub-contractor becomes liable for payment of VAT. From your query, name of the State, where contracts are being executed, is not clear. If it is U. P., then we would like to say that current composition schemes, which are applicable in U. P., have no provision for giving benefit of composition opted by the main contractor to sub-contractors. Schemes, which had been applicable in Trade Tax period i.e. before 01-01-2008, had provided benefit to sub-contractors if main contractor had opted civil works composition scheme.



Query No. 18Querist name    Mrs. Vipin SainiQuerist city:  Ghaziabad
Mrs.  Vip[in, asked us:
        I want to start my proprietership firm in which I will do job work for companies with material received from th companies. Whether it is mandatory for me to get TIN No.
We responded as follows:
Dear Vip[in,
        Only dealers, who make sale or purchase of goods or both, are required to obtain TIN. As you have stated that material will be provided by the companies for whom you will do job work, there will be no sale of goods. But you have to ensure than no goods are transferred in any form to those companies.



Query No. 19      Querist city:  NOIDA
   Querist asked us:
        Is Entry Tax applicable on Plant and Equipment to be supplied to a Power Project under construction in the state of Uttar Pradesh? Plant and Equipment likely to be supplied are Hydro Project Gates, Cranes, Hoists etc. What is the Rate of Entry Tax, if applicable?
We responded as follows:
Dear Madame / sir,
        No, Sir, Please visit U.P. Entry Tax Rate page on www.taxtalkindia.com and get complete list of 9 Items on which Entry Tax is applicable in U.P.



Query No. 20Querist name    Mr. Varun PaliwalQuerist city:  Gurgaon
Mr.  Varun, asked us:
        What are the rate of WCT in UP?
We responded as follows:
Dear Varun,
        In U. P. in respect of works contracts, VAT rate of tax deduction at source (VAT TDS)is 4 percent. For computing VAT amount in respect of goods in which property has has been transferred in execution of the contract, same rates, which are applicable in respect of sale of such goods in cases of ordinary sales, are also applicable in cases of works contracts.



Query No. 21Querist name    Mr. Madhukar YadavQuerist city:  Noida
Mr.  Madhukar, asked us:
        Whether entry tax is applicable on Natural Gas in Uttar Pradesh?
We responded as follows:
Dear Madhukar,
        Yes, Entry Tax is applicable on Natural Gas in Uttar Pradesh. But rebate is available if Tax under U. P. VAT Act is payable.



Query No. 22Querist name    Mr. Madhukar YadavQuerist city:  Noida
Mr.  Madhukar, asked us:
        What is the rate of entry tax on Natural Gas in Uttar Pradesh?
We responded as follows:
Dear Madhukar,
        It is 5 percent of value of Natural Gas. Value is taken as defined in section 2 of the U. P. Tax on Entry of Goods Into Local Areas Act, 2007.



Query No. 24Querist name    Mr. Gian SwaroopQuerist city:  Kanpur
Mr.  Gian, asked us:
        Whether coal attracts levy of Entry Tax in U.P.?
We responded as follows:
Dear Gian,
        Yes, coal attracts levy of entry tax in U. P. @ 2 percent of value of coal.



Query No. 25Querist name    Mr. Ramesh ChandraQuerist city:  Meerut
Mr.  Ramesh, asked us:
        I have purchased goods through a purchasing agent. In this situation who will claim input tax credit, me or purchasing agent. We both are registered dealers and purchasing agent has obtained tax invoice in respect of purchase of goods. Thank you.
We responded as follows:
Dear Ramesh,
        In such cases, principal has to claim input tax credit. Here you are principal, therefore, you are entitled to claim input tax credit.



Query No. 26Querist name    Mr. ARVIND PAULQuerist city:  NOIDA
Mr.  ARVIND, asked us:
        we are the real estate co. -my question is that-can we purchase the plant-machinery( batching plant) against form-c , if not , then why.
We responded as follows:
Dear ARVIND,
        If you hold Registration Certificate, issued under the Central Sales Tax Act, for purchase of plant and machinery under the head goods required for use in manufacture or processing of goods for sale, then you can purchase machinery and plant. Normally, builders do not declare sale of manufactured goods because under the works contract what is sold is the goods involved in the execution of the contract. In which form the goods are incorporated in the works is immaterial.



Query No. 27      Querist city:  meerut
   Querist asked us:
        Dear
We responded as follows:
Dear Madame / sir,
        No query has been posted. If you have posted any query, then please re-send your query.



Query No. 28      Querist city:  meerut
   Querist asked us:
        Dear SIr, i need clairification about entry tax on sugar in u.p ascases under : 1.i am a regsiter dealer in u.p, meerut city and want to purchase suagr from any unregister dealer also in u.p and meerut city and sell to a register dealer in u.p, meerut city than what will be entry tax or any other tax or any form to issue for tax exemption to purchaser. Please revert me,
We responded as follows:
Dear Madame / sir,
        Entry Tax is payable when goods are brought or received into a local area from any place outside such area. It is immaterial that from whom such goods are purchased or received. Sugar purchased from unregistered dealer cannot be treated Entry Tax paid. You will have to pay tax if sugar is received from outside Merrut Municipal Board area. After you pay tax, the dealer to whom you will re-sell sugar will not be liable for payment of Entry Tax if you issue to him Form of declaration prescribed by the Government in this behalf.



Query No. 29      Querist city:  Ghaziabad
   Querist asked us:
        Want to know the rate of entry tax on Software!
We responded as follows:
Dear Madame / sir,
        In Uttar Pradesh, Entry Tax is not applicable on softwares. Please visit link UP ENTRY TAX RATES on Home Page of Web Site www.taxtalkindia.com. It displays list of all goods on which entry tax is payable.



Query No. 30      Querist city:  MEERUT
   Querist asked us:
        Dear Sir, Please let me clairfy the under below i am a register dealer in meerut city, u.p and purchase sugar from meerut city with in local area from an unregterdealer and re sell the same to other register dealer also in meerut city with in loacl area . Please tell me about the tax liablity on me and on the purchase whcih i have re sell the sugar and the rate of tax also. if any exemption can be taken by issuing any form . Thanks!
We responded as follows:
Dear Madame / sir,
        Since you do not bring or receive sugar from outside the local area of Merrut City, you are not liable for payment of Entry Tax on sugar. You are also not liable for payment of Entry Tax on sale of sugar. The dealer to whom you sale sugar is also within the same local area, he will also be not liable for payment of Entry Tax. You will claim sugar received from a person within the local area, you should have some evidence in order to establish your version. This proof may be identity of the person and his acceptance about sale of sugar to you. In these transactions, no form is applicable.



Query No. 31      Querist city:  MEERUT
   Querist asked us:
        Mr. SHEKHAR GUPTA wrote to us on 8/25/2010 12:00:00 AM as follows: Query Ref. No. FQ29/SHEKHAR8/25/2010 Dear Sir, Please let me clairfy the under below i am a register dealer in meerut city, u.p and purchase sugar from meerut city with in local area from an unregterdealer and re sell the same to other register dealer also in meerut city with in loacl area . Please tell me about the tax liablity on me and on the purchase whcih i have re sell the sugar and the rate of tax also. if any exemption can be taken by issuing any form . Thanks! Reply Text: We responded as follows: Dear SHEKHAR, Since you do not bring or receive sugar from outside the local area of Merrut City, you are liable for payment of Entry Tax on sugar. You are also not liable for payment of Entry Tax on sale of sugar. The dealer to whom you sale sugar is also within the same local area, he will also be not liable for payment of Entry Tax. You will claim sugar received from a person within the local area, you should have some evidence in order to establish your version. This proof may be identity of the person and his acceptance about sale of sugar to you. In these transactions, no form is applicable. Kindly clairy me the meaning of second line you are liable for payment of Entry Tax on sugar. does it mean i have to pay entry tax. and also tell me which type of evidence would be accepted for such transaction to ensure that purchase have been made with in locan area .
We responded as follows:
Dear Madame / sir,
        Sorry ! It should have been "you are not liable for payment of Entry Tax on sugar". As regards to your second query regarding type of evidence, it may be any thing which can support your version that you have purchased sugar from disclosed person from within the local area of Meerut. You may obtain invoice from the seller and if he does not issue sale invoice, then you can prepare purchase invoice with his complete address and obtain signature of the person selling goods. Since unregistered dealer is also of Meerut City, you can verify his identity.



Query No. 32Querist name    Mr. Mr.Shri Ratan GuptaQuerist city:  Kanpur
Mr.  Shri Ratan Gupta, asked us:
        What is the name of the owner of the VAT number 09637500598?
We responded as follows:
Dear Shri Ratan Gupta,
        Sorry ! We do not have Directory of dealers registered with VAT Department in U. P. You are advised to visit Official Web Site of Commercial Tax Department of Uttar Pradesh.



Query No. 33      Querist city:  meerut
   Querist asked us:
        Dear Sir, Please clairfy me the under below: I purchased sugar from a unregister dealer with in local area meerut city, u.p and re sell the same to a register dealer outside local area of meerut in u.p than what will the entry tax liablities on me or the purchaser whom i re sell the sugar. Should there can be any form i can issue to purchaser for tax exemption to him . Thanks!
We responded as follows:
Dear Madame / sir,
        You will not be liable for payment of Entry Tax. Purchaser will be liable for payment of Tax. No Form can be issued to purchaser.



Query No. 34Querist name    Mrs. amit kumarQuerist city:  U.P
Mrs.  amit, asked us:
        what should be the treatment of tax if goods purchases from unregistered dealer as per U.P Vat
We responded as follows:
Dear amit,
        Purchasing dealer will be liable for payment of tax on purchase price of goods and if purchased goods are VAT goods, purchasing dealer will be entitled for claiming Input Tax Credit in accordance with conditions given in section 13 of the U. P. VAT.



Query No. 35Querist name    Miss Sheeja NairQuerist city:  Delhi
Miss  Sheeja, asked us:
        Need details on WCT deducted on work contract
We responded as follows:
Dear Sheeja,
        As per provisions of the U. P. VAT Act, 2008, in cases of works contracts, contractee, while making payment to the contractor, is required to make deduction towards contractor’s liability of payment of VAT, @4 % from payments made to the contractor. Adjustment of such deducted amount is claimed by the contractor towards his liability of tax in the works contract. For this he has to furnish certificate of deduction obtained from the contractee in the prescribed form. Where contractor is of the view that his VAT liability will be less than the amount of 4 % of the contract value, he may apply to his assessing authority for making deduction at lower rate. The assessing authority issues direction to the contractee for making deduction at the rate mentioned in the order / direction. Section 34, with the title Tax Deduction at Source, of the U.P. VAT, 2008 provides all details relating to such deduction. All most all States in India have enacted such provision in their VAT laws.



Query No. 36Querist name    Mr. sachin kumarQuerist city:  noida
Mr.  sachin, asked us:
        please inform us about the Composit scheme available in u.p. for small business man our business is type of Mattresses, Pillow, Beds,we will be very grateful to you if you co0operate us for funishing the information of Composit scheme relating to VAT
We responded as follows:
Dear sachin,
        Under U.P. VAT, composition scheme is available for small traders who make purchase of all goods from within Uttar Pradesh and make sales of all goods in Uttar Pradesh; and whose annual turnover is not likely to exceed 50 lakh rupees. Such traders are not entitled for claiming input tax credit. They are required to pay a fixed percentage amount of their total turnover of sale. They cannot issue Tax Invoice in respect sale of goods. Presently, such fixed percentage is 0.5 %. Section 6 of the U.P. VAT Act, 2008 is the relevant section for composition schemes.



Query No. 37Querist name    Mr. Bikram Kishore MajumderQuerist city:  Kolkata
Mr.  Bikram, asked us:
        I want to know the rules of tax audit under VAT & CST Act. When a dealar is liable to make tax audit and what is the atc and rules.
We responded as follows:
Dear Bikram,
        In case of a dealer whose annual turnover exceeds One croe rupees, sub-sections (17) & (18) of section 21 of the U. P. VAT Act, 2008 require a dealer to submit audit report alongwith annual return. Rule 42 of U. P. VAT Rules, 2008 relates to submission of audit report and rule 45 relates to submission of returns. Sub-rule (7) relates to submission of annual return. Annual return is to be submitted by October 31 every year. For these provisions, you may visit www.taxtalkindia.com. Under link VAT, CST & OTHER ACTS, you will get U.P. VAT Act & U. P. VAT Rules.



Query No. 38      Querist city:  NOIDA
   Querist asked us:
        What is rate of wct tds in UP? mainly for civil works contract.
We responded as follows:
Dear Madame / sir,
        It is 4 percent of gross amount payableby the contractee.



Query No. 39      Querist city:  NOIDA
   Querist asked us:
        Sir, i purchased some steel from a steel supplier in UP only for local sales(local purchase & local sales transaction). Now sales tax deptt. is asking for entry tax from me on this purchases because the entry tax was not paid (instead they are providing bank guarantee of in lieu of entry tax amount) by the seller while taking the goods in the UP state through stock/transfer by his manufacturing unit situated in diff. states. Pls suggest.
We responded as follows:
Dear Madame / sir,
        If selling dealer has delivered goods within the same local area in which your place of business is situated, you are not liable for payment of Entry Tax because you have not brought or received goods from outside the local area. Where selling dealer has delivered goods in a different local area and you have brought those goods in diffrent local area, then you will be liable for payment of Entry Tax unless you receive Form D from the selling dealer.



Query No. 40Querist name    Mr. MANAN GUPTAQuerist city:  NOIDA
Mr.  MANAN, asked us:
        Sir, i purchased some steel/cement out of UP state for sale it to a customer situated in UP only. I will do the transaction u/s 6 (2) of CST Act to avoid local tax. Sir, road permit (form-38) is also required because goods is entering in UP state. Whether can I ask my customer to issue road permit (at what stage?) or should i use my own road permit (than entry tax liability comes to me. Pls guide. I can explain better over phone, if possible.
We responded as follows:
Dear MANAN,
        If you sell goods after they enter the State of U. P., you will have to use your own Form 38 and if you make sale before goods enter into the territory of U. P., then your customer will have to use its own Form 38. This will also decide the liability of Entry Tax. Under tansaction falling under section 6(2) of the Central Sales Tax Act, 1956 delivery from common carrier will be taken by your customer. For seeking exemption on inter-state sale, you will have to procure Form E-1 from your seller and Form C from your purchaser.



Query No. 41      Querist city:  faridabad
   Querist asked us:
        Dear Sir, I want to know that there is a any liability of ENTRY TAX in UP state on the material (Mild Steel Wire Rod) brought for the purpose of Job Work (Job work is Done by Annealing & Drawing)from outside the UP
We responded as follows:
Dear Madame / sir,
        In my opinion, MS Wire Rods attarct liability of Entry Tax. Under Job work such matrial will be used and consumed in the local area. Therefore, liability of Entry Tax will be attracted.



Query No. 42      Querist city:  MEERUT
   Querist asked us:
        Dear Sir, Kindly sugeess me the treatement for the following case: i am regsitered dealer in u.p vat act and i purchase oil cake 5% vat on it from a unregister dealer supoose rate 1200/- qt. then i re sell the same with a profit margin Rs. 1300/- qt than how much vat i have to pay on purchase and at the time of re sell and total tax liability on me. Thanks!
We responded as follows:
Dear Madame / sir,
        You will have to pay tax on purchase price of Rs. 1200.00 @ 5 percent amounting to Rs. 60.00. Thereafter, you will claim input tax credit of Rs.60.00. When you will sell it then you will pay VAT on Rs.1300.00 @5% of amount Rs.65.00. After adjusting amount of input tax credit (which is the amount of tax paid on purchase price) of Rs.60.00, you will pay to the Government an amount of Rs.5.00. Total tax paid by you will be Rs.65.00.Input tax credit is the amount which you receive back from the Government.



Query No. 43Querist name    Mrs. Vandana GuptaQuerist city:  faridabad
Mrs.  Vandana, asked us:
        Dear Sir Thanks for giving the reply of my Question regarging Entry Tax on Job Work now Pl again consider, that in my opinion This material is not used and consumed in local area because it is returned after drawing & annealing to the same party out of UP
We responded as follows:
Dear Vandana,
        No comments !



Query No. 44      Querist city:  NOIDA
   Querist asked us:
        Sir, what are the rates of entry tax on cement and steel during 01.04.2007 to 30.06.2010 (for last 39 months). It is required from 01.04.2007.
We responded as follows:
Dear Madame / sir,
        Sorry ! we have not complied them at one place. Please visit www.taxtalkindia.com. Create UserId & password. It is free. Under login services, you will find UP VAT & ENTRY TAX NOTIFICATIONS. Go through Entry Tax Notifications. You will find changes made from time to time. For period commencing on 01-04-2007 and ending with 31-12-2007, you will find rates under UP TT & ENTRY TAX Rates.



Query No. 45      Querist city:  NOIDA
   Querist asked us:
        Sir, whether sales u/s 6 (2) of CST act can be done if there is predetermined buyer. if yes/no, any recent case law on this.
We responded as follows:
Dear Madame / sir,
        Yes. Sale is effected by transfer of documents of title to the goods while goods are in movement from one State to another State.



Query No. 46Querist name    Mrs. Vandana GuptaQuerist city:  faridabad
Mrs.  Vandana, asked us:
         Dear Sir, This is again a question about the what is the difference between 1. MS Wire 2.MS Wire Rod 3. Wire Rod 4. WR Coils.Which item is an ENTRY TAXABLE item Again Thanks & Regards
We responded as follows:
Dear Vandana,
        It will depend on thickness (I mean diameter) of Rod or Wire.



Query No. 47Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        what is the rate of tax on Transfarmer's
We responded as follows:
Dear RAGHAVENDRA,
        In Uttar Pradesh, sale of transfarmer is taxable @ 12.5 percent of its sale price. Additional Tax is payable separately.



Query No. 48      Querist city:  Mumbai
   Querist asked us:
        Dear Sir, I want some information about form III B (UP local tax). What are the transections allowed to get benefits of the said form.
We responded as follows:
Dear Madame / sir,
        Form III-B was prescribed under the Uttar Pradesh Trade Tax Act, 1948. Manufacturers of taxable goods holding Recognition Certificate granted to them by their assessing authority were entitled to purchase goods from any registered dealer for use by them in manufacture of goods or in packing of manufactured goods, in some cases without payment of tax and in other cases after payment of tax at concessional rate of tax. A Manufacturer was required to issue Form III-B to the selling dealer. Goods which could be purchased were the the goods mentioned on their Recognition Certificate. Goods those could be mentioned on Recognition Certificate were plant, machinery, spare parts, raw materials, fuels, consumables and packing materials.



Query No. 49Querist name    Mrs. Vandana GuptaQuerist city:  faridabad
Mrs.  Vandana, asked us:
        Dear Sir My self is confused about the which item is Entry Taxable 1. MS Wire 2.MS Wire Rod 3. Wire Rod 4. WR Coils. Very Very Thanks With Regards
We responded as follows:
Dear Vandana,
        Wire Rod whether straight or in form of coil is wire rod. Therefore, items MS Wire Rod, Wire Rod and WR Coil are the same thing if wire rod and wire rod coil are made of steel. All these items are liable for entry tax.



Query No. 50Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir that's very kind of U for ur Response. Sir I know what is the difference of Tax Payable & Net Tax Payable and what is the meaning of Tax due & Net Tax Due plese clearyfy 2 me with example.
We responded as follows:
Dear RAGHAVENDRA,
        In reference to tax on sale or purchase of goods, tax due is the amount of tax computed as per provisions of the Act on turnover of sale & purchase of goods and net tax due is the amount of tax which is to be paid to the Government after claiming admissible adjustment, if any.



Query No. 51Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir that's very kind of U for ur Response. Sir I know what is the difference of Tax Payable & Net Tax Payable and what is the meaning of Tax due & Net Tax Due plese clearyfy 2 me with example.
We responded as follows:
Dear RAGHAVENDRA,
        Repeated query No. 51. No reply is required.



Query No. 52Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir that's very kind of U for ur Response. Sir I know what is the difference of Tax Payable & Net Tax Payable and what is the meaning of Tax due & Net Tax Due plese clearyfy 2 me with example.
We responded as follows:
Dear RAGHAVENDRA,
        We did not consider it proper to reply the query.



Query No. 53Querist name    Mrs. Vandana GuptaQuerist city:  Faridabad
Mrs.  Vandana, asked us:
        Dear Sir The Defination of Job work is as: Under the Job Work Scheme , a manufacturer may remove the inputs as such or in the partially processed form to a place outside his factory for the purpose of test, repair, refining, re-conditioning or carrying out any other operation necessary for the production of the final products or for the manufacture of intermediate products necessary for the manufacture of final products. The manufacturer may remove the inputs under the cover of a proper challan wherein the full description of the inputs as well as its quantity should be mentioned along with the details of the Job Worker. The intermediate goods or the final products so manufactured, should be received back in the parent factory within 180 days of their being sent to a Job Worker. Under specific circumstances, the finished goods may be allowed to be cleared from the premises of the jobworker itself only after the order of the proper officer. A manufacturer may also send jigs,fixtures, moulds and dies to a jobworker for the production of goods on his behalf and according to his specifications. In my opinion therefore there is not a liability of Entry Tax & respected sir what about your views Thanks with Regards
We responded as follows:
Dear Vandana,
        I think you are talking about job work in reference to Central Excise levy. The definition is not applicable to levy of Entry Tax. Entry Tax is levied under the Entry, "Taxes on Entry of Goods into Local Areas for use, consumption or sale therein", provided in the State List of Seventh Scedule of the Constitution of India. States levy Entry Tax using their power under this entry of the Constitution. Entry Tax is not leviable on the event of sale or manufacture or processing of goods. The entry relates to toll tax collection by Local Bodies.



Query No. 54Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
         Sir , My 1st query is still stand as yet that what is the difference of Tax Payable & Net Tax Payable plese clearyfy 2 me with example.
We responded as follows:
Dear RAGHAVENDRA,
        Please visit page KNOW WHAT OTHERS HAVE ASKED link and then visit current page. Answer to your query is available there. In my opinion your problem is not genuine.



Query No. 55Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        sir please find out my net tax payable & ITC c/f 4 next tax period. 1. ITC b/f rs.5000/- 2. Input Tax rs.12000/- against Tax Invoice Purchase 3. Tax payable rs.10000/- against Purchase from unregistered dealer 4. Output Tax on sale is rs. 20000/- how much tax will be paid by me & what's time tax paid 4 ITC claim as per VAT law.
We responded as follows:
Dear RAGHAVENDRA,
        From your query , it is not clear that how much amount is admissible as Input Tax Credit out of amounts of Input Tax of Rs.12,000.00 & Rs.10,000.00. For time period for claing amount of input tax credit, please go through the relevant rule. As per relevant rule, input tax credit is to be claimed in the return of the tax period in which goods have been purchased. Instructions, if any, contrary to rule are not valid. Assuming that total amount of 22,000,00 is admissible as input tax credit, your total liability will be (Rs.20,000 + 10,000.00) - (12,000.00 + 10,000.00 + 5,000.00) which will be Rs.3,000.00.



Query No. 56      Querist city:  Delhi
   Querist asked us:
        Dear All, "Greeting" This is related to Work Contract Tax, I m working in a Company engaged in a Construction of Road in Gujarat and Rajashtan. In both state we are in composition scheme. we are liable to pay tax total contract value @ fixed rate and our WCT TDS is deducted by our awarder and we had sub-contract the few part of the same contract. Our doubt is that, if we (Main contractor) are paying the Tax on total contract Value are also liable to deduct the WCT-TDS on our sub contract or not. if yes, is it not a double taxation on same contract. or if not , why? Looking for expert advice. Regards MK Sharma
We responded as follows:
Dear Madame / sir,
        In case the main contractor awards sub-contract, it is the sub-contractor who is liable for payment of works contract tax (wct) in respect of works contract executed under the sub-contract and for that purpose, main contractor is required to make TDS (wct). If main contractor is paying tax under composition scheme and composition scheme does not provide relief in respect of part of the contract executed through sub-contractor, then sub-contractor will have to pay tax. In this situation, you cannot claim double taxation.



Query No. 57      Querist city:  MEERUT
   Querist asked us:
        Dear Sir, Please clearify me the following case: I have purchase rice againts tax invoice with in u.p as under Rice 500 Kg @15/- Per KG Amount 7500 Vat@4% 300 Sub Total 7800 Less: Discount 300 Net Amount 7500 Now i want to re sell the same as i am consider that the discount adjuste from my purchase amount i consider that purchase amount for me is 7200 and in put vat is 300 and according to that i invoice it as for re sell as under with my profit margin Rice 500 Kg @ 15.10/- Amount 7550 Vat@4% 302 Total 7852 And tax liabilities as Output Vat 302 Less Input 300 Net Tax 2 pls help me about my case
We responded as follows:
Dear Madame / sir,
        Sorry ! We do not solve cases here. You may send email.



Query No. 58Querist name    Mrs. sunil shuklaQuerist city:  agra
Mrs.  sunil, asked us:
        dear sir, it is evident that contractor under compounding scheme is to be assessed @2% and @6% on his gross turnover received.tds is also been deducted on such transactions. in the new form-24C it is not clear how we adjust such TDS with the tax payable and if in case there is some excessive amount is deducted, how can we ask for refund or carry forward such amount to the next tax period. kindly clarify. thanking you.
We responded as follows:
Dear sunil,
        You can request your assessing authority by presenting application under section 34 of the U. P. VAT Act, 2008 for issuing direction to the contractee for making deduction @ 2 percent. Thereafter, the contractee will make TDS (VAT wct) @ 2 percent and you will not be required to claim refund. Till then you can show total amount in payment column and should leave a note on hard copy of return in relation to excess amount paid. You will receive refund only after assessment. Your assessing authority can also direct the contractee not for making deduction of tds amount to the extent of amount paid in excces of composition money which has been due.



Query No. 59Querist name    Mr. gaurav singhalQuerist city:  delhi
Mr.  gaurav, asked us:
        what is the use of Form 21 in sales of goods in Uttar pardesh
We responded as follows:
Dear gaurav,
        Form XXI, known as Transport Memo, was introduced for preventing evasion of tax which was being done, by preparing Second copy (office copy maintained by selling dealer) of bill/cash memo of lesser amount than the amount shown on Original (First) copy of bill / cash memo after goods were reached the destination given by the purchaser.It was introduced in Trade Tax regime before introduction of VAT. Under VAT, design of Form XXI has been changed and on account of this Form has not remained much usefull. It applies to sale of only those goods which are notified by the Government. Under VAT, no such goods have been notified. Form XXI is supposed to accompany sold goods during their journey.



Query No. 60Querist name    Mr. Amit Kumar SishodiaQuerist city:  Ghaziabad
Mr.  Amit, asked us:
        Dear Sir, I know UP Vat Rate Item Wise . Your Best Regard Amit Kumar Sishodia
We responded as follows:
Dear Amit,
        It is not feasible for us to supply list of rates of all goods. You are advised to visit www.taxtalkindia.com. The Web Site provides search facility for U.P. VAT rates of all goods entered in VAT Schedules



Query No. 61Querist name    Mr. Rajkumar SharmaQuerist city:  Ghaziabad
Mr.  Rajkumar, asked us:
        what is the status of u p entry tax
We responded as follows:
Dear Rajkumar,
        To my knowledge, it is very much in its place.. You are advised to visit the link on home page of our other Web Site www.taxtalkindia.com.



Query No. 62Querist name    Mr. Navneet ChandakQuerist city:  Howrah
Mr.  Navneet, asked us:
        Whether Work Contract Tax is applicable in Uttar Pradesh??? If Yes, then what is the rate????
We responded as follows:
Dear Navneet,
        Yes, it is applicable in Uttar Pradesh. There is no single rate of tax. It depends on goods incorporated in the works contract and items incorporated in the works contract attract the same rate of tax which is applicable in case of ordinary sale of such item. Rate of TDS (VAT WCT) is 4 percent.



Query No. 63Querist name    Mrs. sandeep singhQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        sir tell me about items which comes from interstate or out of state but road permit (form - 38) is not mandetory for those items
We responded as follows:
Dear sandeep,
        These are the items the sale and purchase of which is exempt from levy of VAT. Such items have been kept in First Schedule of VAT rates by all States. You can see First Scedule of U. P. VAT by vising www.taxtalkindia.com or the Web Site of Commercial Tax Department of U. P.



Query No. 64Querist name    Mr. Madhusoodan H PQuerist city:  bangalore
Mr.  madhusoodan, asked us:
        Dear Mr Dayal, I read your article on How to Compute WCT. It was interesting. I feel that the situation that you are covering is where the dealer is executing the contract himself. But what about a case where a dealer takes a contract and sub contracts the entire work i.e C is customer, A is main contractor for C and A sub contracts the entire work to sun contractor B. In that case the computation will be as follows under the UP VAT Act and Rules (As Amended from time to time): Turnover (Being the amount as per invoices raised by A on C) Less: Sub contractors turnover Less: Abatement @ 20% (since the contract will not fall within the categories listed in the table) This will give Taxable Turnover on which VAT to be applied From this amount Input Tax Credit if any can be deducted and final liabiltiy needs to be paid. Could you let me know if this method is ok and what are the documents that may be required at the time of assessment. Regards, Madhusoodan
We responded as follows:
Dear madhusoodan,
        Where main contractor awards contract to sub-contractor, it is the sub-contractor who effects sale to contractee. In respect of the contract executed by contractor, it is sub-contractor who is liable to pay tax under the works contract. In respect of the work which is executed by sub-contractor, main contractor is not liable to pay tax. In case of sub-contractor, tax will be computed in the manner tax is computed in case of main contractor.



Query No. 65Querist name    Mrs. sandeep singhQuerist city:  Ghaziabad
Mrs.  sandeep, asked us:
        Sir, what is the procedure for Purcase Return, how to send we purchase return material to party, what document, sales tax charge on document or not. in case we have taken Input Tax Credit on that mateial and party also deposit sales tax tell me about whole procedure for us and for party (This Purchase is Local Purcahse)
We responded as follows:
Dear sandeep,
        If purchased goods are returned within a period of six months from the date of purchase, benefit of tax paid in respect of goods returned can be claimed. For this you are required to obtain credit note from selling dealer and you are required to issue a debit note to the selling dealer. However, period of 30 days for issue of credit note and debit note has been prescribed but this provision is procedural in nature. Procedural procedure cannot take away substantive right. Section 23 of the U.P. VAT Act provides for claiming credit of tax realised in excess of amount of tax payable. If you have claimed Input Tax Credit, you are required to work out amount of reverse input tax credit. Such amount of reverse input tax credit will be deposited by you.



Query No. 66Querist name    Mrs. sandeep Querist city:  ghaziabad
Mrs.  sandeep, asked us:
        sir, if I raised to Form "C" to party, what amount should fill in the form "C" (1) Total Amount of Invoices with Freight (2) Invoice Amount Without Sales Tax (3)Total Invoice Amount Withou Freight What amount should be fill in road permit form - 38
We responded as follows:
Dear sandeep,
        You are required to fill in the price of goods inclding packing & forwarding charges. This should be the price on which selling dealer has charged tax. But there is no harm if you mention total amount of invoice. On safer side where you mention price of goods as suggested above, you can mention words "excluding tax and freight amount". On Form 38, total amount of invoice should be entered.



Query No. 67Querist name    Mrs. sandeepQuerist city:  Ghaziabad
Mrs.  sandeep , asked us:
        Dear sir Is the stock transfer/consignment sale is taxable in case of Local transfer & Ex-State transfer. if yes (tell me about the procedure with tax rate)
We responded as follows:
Dear sandeep ,
        Transfer of goods without a sale does not attract liability of VAT or sales tax. If transfer is within the State, it may be to your own branch, depot or head office or to your agent or principal. Tax liability will be attracted only when goods will be sold after their transfer. Where selling agent makes sale, he is also a dealer and is liable for payment of tax on sale made by him. But for claiming exemption on such sale, you, as principal, will be required to prove that selling agent has paid tax. If stock transfer is outside the State, there is no liability of tax but if you do not obtain and produce Form F, prescribed under the Central Sales Tax act, 1956, it will be deemed that you have made inter-state sale and then you will be liable for payment of tax on such deemed inter-state sale.



Query No. 68Querist name    Mr. Atul MehraQuerist city:  Noida
Mr.  Atul, asked us:
        Can purchaser get the exemption for deduction of Work Contract Tax from contractor in Special Economic Zone (SEZ Zone). If get what formalities has to be fulfill to issue the certificate to the contractor. Is contractor also need to apply the exemption certificate from the particular vendor.
We responded as follows:
Dear Atul,
        Contractor can apply to his assessing authority for issuing directions to contractee for not making any deduction from the contractor. It is only the contractor who is entitled for presenting application before his assessing authority. Contractee cannot present the application. Contractor has to show or prove that his liability in the works contract will be nil.



Query No. 69Querist name    Mr. Manish Kumar SharmaQuerist city:  Delhi
Mr.  Manish, asked us:
        Dear All, We have a confusion about the E1 & E2 Sales in transit. For E1 Sales in Transit 3 Parties required "A" as a customer, "B" is supplier of "A" and "C" is supplier of "B" . We have the following scaniro , please help me in which the E1 Sales are Correct. 1) If A and B are in the same state.? 2) If B and C are in the same state.? 3) If A & C are in the saem state.? Looking for Expert advice which is very help full for me. Thanks in Advance Regards MK Sharma
We responded as follows:
Dear Manish,
        Look here, in case of an inter-state sale, location (situs) of seller or purchaser is immaterial. They may belong to the same State. Inter-state sale requires only that there should be inter-state movement of goods. Either sale should occasion such movement or sale should have been effected by transfer of documants of title to goods during such movement . Therefore, in your case all three may belong to same State. So please, re-draft your query.



Query No. 70Querist name    Mr. Manish Kumar SharmaQuerist city:  Delhi
Mr.  Manish, asked us:
        Dear All, We have a confusion about the E1 & E2 Sales in transit. For E1 Sales in Transit 3 Parties required "A" as a customer, "B" is supplier of "A" and "C" is supplier of "B" . We have the following scaniro , please help me in which the E1 Sales are Correct. 1) If A and B are in the same state.? 2) If B and C are in the same state.? 3 If A & C are in the saem state.? Looking for Expert advice which is very help full for me. Thanks in Advance Regards MK Sharma
We responded as follows:
Dear Manish,
        See reply to earlier query.



Query No. 71Querist name    Mr. RAAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir, I please guide me about what no. of VAT Return Form applicable for Dealer of Tent who is registered under U.P. Trade Tax & what Turnover he will show or not in Return Form.
We responded as follows:
Dear RAGHAVENDRA,
        U. P. Trade Tax is not applicable in U. P. after commencement of U. P. VAT i.e. with effect from January 01, 2008. Registration granted under U. P. Trade Tax has also expired if it has not been presented for validation under U.P. VAT Act, 2008. Under U.P. VAT, a dealer is required to submit periodical return on Form XXIV. You can find this Form on www.taxtalkindia.com under login services under UPVAT Forms.



Query No. 72Querist name    Mrs. ashokQuerist city:  Ghaziabad
Mrs.  ashok, asked us:
        sir if we import/purchase the exempted material from interstate, the road permit (form-38) is mandetory for this purchase.
We responded as follows:
Dear ashok,
        If sale and purchase of any goods is exempt from levy of tax under U. P. VAT, then Form-38 is not required for carrying, receiving or bringing goods at any place in U. P. from any place outside U. P. List of such goods has been provided in Schedule-I of the U. P. VAT Act, 2008.



Query No. 73Querist name    Mrs. ashokQuerist city:  Ghaziabad
Mrs.  ashok, asked us:
        sir if we sale the material in local, but within 6 month we have received our meterial as a sales return. I asking to you that how to treat this sales return, i mean we have deposit the sales tax against this sale, will this sales tax is refundeble or adjustable
We responded as follows:
Dear ashok,
        If you have issued credit note and received debit note, you cannot claim refund or adjustment. Amount which becomes refundable can be adjusted by the dealer.



Query No. 74Querist name    Mr. Rishi Kumar SrivastavaQuerist city:  Allahabad
Mr.  Rishi, asked us:
        Dear sir, Pls tell what is the mean of Ex- up Principal A/c, UP principal A/c
We responded as follows:
Dear Rishi,
        These terms have been used in U. P. VAT Return. These terms are understood in reference to principal and agent relationship. In betwwen a principal and his agent there is no purchase and sale. Agent works for his principal. You would have heard about selling agents and purchasing agents. Selling agents sell his principal's goods and send sale amount to principal after deducting their commission and purchasing agent makes purchases of goods for his principal and receives amount of purchase price and his commission from the principal and sends goods to his principal or a person nominated by the principal. In some cases, principal may also sell such goods though the same commision agent. In such case, agent retains goods with him for sale on behalf of the principal. Such sales and purchases are also known as sales through commission agent and purchases through commission agent. In such cases, agent never becomes owner of goods. Ex-U.P. Principal means that principal is located outside U. P. and U.P. Principal's A/c means is located in U. P. Agent makes purchases & sales in the A/c of his principals.



Query No. 75Querist name    Mr. Manish SharmaQuerist city:  Delhi
Mr.  Manish, asked us:
        Dear All, We have a confusion about the E1 & E2 Sales in transit. For E1 Sales in Transit 3 Parties required "A" as a customer, "B" is supplier of and "C" is a Manufacture . B has to supply the material to "A " but B is purchasing the material from "C" but direct deliver to "A" We have the following scaniro , please help me in which the E1 Sales are Correct. 1) If A and B are in the same state? 2) If B(Supplier) and C(Manufacture)are in the same state.? 3) If A (Customer)& C (Manufacturer) are in the same state.? Is it possible in all three cases that B will Sold the Material to "A" against E1 Sale. Hope this query is more clear than earlier. Looking for Expert advice which is very help full for me. Thanks in Advance Regards MK Sharma
We responded as follows:
Dear Manish,
        I address C as the first selling dealer who makes sale to another dealer B. C consigns goods to another State. B does not take delivery of goods and makes sale to another dealer C by transfer of documents of title to goods . I assume that under the inter-state sale goods move from State X to State Y. Here C makes first inter-state sale to B and B makes subsequent sale to another dealer A. In the chain of inter-state sales for Form E-1 is issued by first selling dealer in the chain to first purchasing dealer in the chain. Therefore, C will issue Form E-1 to B. Form C is always obtained by selling dealer from its purchasing dealer. Therefore, C will obtain Form C from B and B will obtain Form C from A. In cases of all other inter-state sales subsequent to second sale in the chain, selling dealer will issue Form E-2 to its purchasing dealer and obtain Form C from its purchasing dealer. Form E-1 or E-2 & Form C transactions can take place only if goods are in movement from one State to another and those transactions of sales have been effected by transfer of documents of title to goods before delivery of goods is taken in the State where first selling dealer has consigned the goods. Goods by the first selling dealer should be consigned from his State to some other State and delivery of goods should be taken in other State. It is immaterial that to which State A, B & C belong.



Query No. 76Querist name    Mrs. ashokQuerist city:  Ghaziabad
Mrs.  ashok, asked us:
        sir, I want to know that. we can raised sales tax form-C to all type of material if no then please tell me about that material which not undercoverd sales tax form "C" and why
We responded as follows:
Dear ashok,
        Form-C can only be issued by a registered dealer in respect of inter-state purchase of goods, names of which are mentioned on the Registration Certificate issued to the dealer under the Central Sales Tax Act. This certificate is issued on Form-B. Purchases against Form-C can be made for specific purposes. Details of such purposes are given in sub-section (3) of section 8 of the Central Sales Tax Act, 1956, If you do not have the Central Sales Tax Act, then please visit www.taxtalkindia.com home page. There, under the Link VAT, CST & Other Acts, you will find the Central Sales Tax Act.



Query No. 77      Querist city:  Bhusawal
   Querist asked us:
        Dear Sir, We are Govt. Civil Contractors and Suppliers based at Bhusawal (Maharashtra) we have taken a material supply job of UP Rajya Vidyut Nigam for which the department would be providing Form XXXVIII & 'C' form as required for the material supplied. As we would be purchasing material directly from Haryana and MP and transfering it to UP against FORM XXXVIII given by Dept at our name and address of Maharashtra. Please let me know the transaction procedure for the same and will there be any problem if material would be transported from Haryana to UP with Form XXXVIII bearing our Maharashtra address. Thanks
We responded as follows:
Dear Madame / sir,
        Form XXXVIII is road permit and where goods are transported by road, it accompanies goods during movement of goods. Other documents which accompany goods are challan / sale invoice / bill / cash memo issued by the consignor and transport document issued by the transporter. Challan/sale invoice, etc. should show particulars of consignor & consignee, No., date, description of goods, quantity / measure of goods and value of goods. Particulars mentioned on Form XXXVIII should be in accordance with such details as mentioned on challan, sale invoice, etc. Particulars on Form XXXVIII are also verified by the consignor. Form XXXVIII does not decide liability of tax. It ensures that goods will be received by a registered dealer in U. P. It is not clear that who will consign the goods from M.P. and Haryana. I think that it will be a Form C and Form E-1 transaction. If it is so then selling dealers of Haryana & M.P. will be consignors in GR and consignee may be you or the ultimate purchaser. In case ultimate purchaser is shown consignee, then transporter may mention name of consignee A/c your company name. In that case also you can fill in particulars in Form XXXVIII accourding to document issued by you.



Query No. 78Querist name    Mrs. ashokQuerist city:  Ghaziabad
Mrs.  ashok, asked us:
        sir please tell me abut that what Items undercoverd for vat input claim. I mean how to we justify that this mateial for taken vat ITC or not. Please tell me with examble for clearification
We responded as follows:
Dear ashok,
        There are few goods which are not covered under VAT scheme of payment of tax. Such goods are called non-vat goods. In respect of purchase of such goods, facility of input tax credit is not available. All other goods are eligible for claim of full amount of input tax as input tax credit if such goods are sold either within the State or in the course of inter-state trade or commerce (central sale) or in the course of export out of the territory of India. If purchased goods are used in manufacture or processing of any taxable VAT good or packing of such manufactured goods and such goods are sold as aforesaid, full amount of input tax as input tax credit is available. But where purchased goods or goods manufactured or processed using purchased goods or packed manufactured goods using purchased goods are consigned or stock transferred to other State, then partial amount of input tax (this partial amount may vary from State to State) may be claimed as input tax credit. Where mode of disposal of purchased goods or manufactured or processed or packed goods is not known at the time of purchase of goods, full amount of input tax credit is claimed and after the goods are disposed, actual admissible amount of input tax credit is worked out and if excess amount of input tax credit has been greater that the actual amount of input tax credit, then difference is paid as reverse input tax credit.



Query No. 79Querist name    Mrs. ashokQuerist city:  Ghaziabad
Mrs.  ashok, asked us:
        sir if our capital goods value is less than 1 crore during any financial year. than we can fully ITC Claim this capital goods if no, tell me about the procedure with exemple
We responded as follows:
Dear ashok,
        In U. P., input tax credit in respect of capital goods required for use in manufacture, in three successive annual installments of equal amount and shall be claimed in the tax return of the first tax period of the assessment year. The first such installment shall be claimed in the tax return of first tax period of the assessment year succeeding the assessment year in which capital goods liable to input tax credit, has been purchased and subsequent installment shall be claimed in first tax period of subsequent assessment year. In other States such provision may be different. In respect of capital goods valuing upto one crore, it had been a suggestion from Empowered Committee of State Finance Ministers that input tax credit may be allowed in normal course as in the case of other goods.



Query No. 80Querist name    Mrs. ashokQuerist city:  Ghaziabad
Mrs.  ashok, asked us:
         sir we can taken Input Tax Credit on Building Materials
We responded as follows:
Dear ashok,
        You have not defined your status. Meaning of we is not clear. What you mean by "we". we can be a contractor as well as a contractee. To whom your query relates? Would you please send a detailed query. If you have given your correct??? email address, then we will respond using your email.



Query No. 81      Querist city:  Noida
   Querist asked us:
        Is this working properly?
We responded as follows:
Dear Madame / sir,
        Sorry! friends, we were testing mail service.



Query No. 82Querist name    Mr. Keshav DayalQuerist city:  Noida
Mr.  Keshav, asked us:
        Whether this link is working properly?
We responded as follows:
Dear Keshav,
        Sorry! friends, we were again testing mail service.



Query No. 83Querist name    Mr. Keshav DayalQuerist city:  Noida
Mr.  Keshav, asked us:
        If working properly, then please confirm.
We responded as follows:
Dear Keshav,
        Yes, it is working properly.



Query No. 84Querist name    Mr. Keshav DayalQuerist city:  Noida
Mr.  Keshav, asked us:
        Is VAT payable on sale of medicines in U.P.? If yes, then at what rate it is payable?
We responded as follows:
Dear Keshav,
        As on September 30, 2010, VAT is payable on sale of medicines in U.P. @ 4 percent alongwith additional tax @1 percent.



Query No. 85Querist name    Mr. Madhukar yadavQuerist city:  Lucknow
Mr.  Madhukar, asked us:
        What rate of tax is applicable on central sale of Iron-steel against Form C?
We responded as follows:
Dear Madhukar,
        Inter-state sale (central sale) of iron-steel against Form C is liable to tax @ 2 perent.



Query No. 86Querist name    Mr. Dharmendra KumarQuerist city:  Noida
Mr.  Dharmendra, asked us:
        Upon imposition of addnl tax of 1/2% from 1June2009 and then revised to 1% from 19Feb2010. We charged 4.5% / 5% on Central sales and deposited tax (i.e under CST) and showed same in returns accordingly. Now it is being told that addnl tax was to be deposited under UPVAT. As such our CST deposited is excess and UPVAT short by same amount. How do we rectify this? Also how is to be reflected in the annual return. The total tax (UPVAT+CST) deposited is correct.
We responded as follows:
Dear Dharmendra,
        If it had been a central sale (inter-state sale), then tax under the State Act (VAT) was not leviable. You have paid tax under the Central Sales Tax Act in the correct manner. If it had been a State sale then tax was leviable under the State VAT. In that case, if you have deposited tax under the CST Act, then it is wrong. Now in Annual return you show correct figures and deposit balance amount of tax under the State VAT and under the Central Sales Tax, you claim refund of tax paid in excess. There is no provision for adjusting excess amount of CST in the tax payable under the State VAT.



Query No. 87Querist name    Mr. Dharmendra KumarQuerist city:  Noida
Mr.  Dharmendra, asked us:
        Addnl tax imposed was charged on Central sales as per applicable rate, deposited under CSt and shown in the returns accordingly. We are now told it falls under UPVAT. As such although our total tax deposited is correct, but due to wrong head entry, cst deposited is excess and UPVAT short by same amount. How is this error to be rectified? How is this to be shown in the annual return?
We responded as follows:
Dear Dharmendra,
        If it had been a central sale (inter-state sale), then tax under the State Act (VAT) was not leviable. You have paid tax under the Central Sales Tax Act in the correct manner. If it had been a State sale then tax was leviable under the State VAT. In that case, if you have deposited tax under the CST Act, then it is wrong. Now in Annual return you show correct figures and deposit balance amount of tax under the State VAT and under the Central Sales Tax, you claim refund of tax paid in excess. There is no provision for adjusting excess amount of CST in the tax payable under the State VAT.



Query No. 88Querist name    Mrs. D KumarQuerist city:  Noida
Mrs.  Dharam, asked us:
        Addnl tax imposed was charged on Central sales as per applicable rate, deposited under CSt and shown in the returns accordingly. We are now told it falls under UPVAT. As such although our total tax deposited is correct, but due to wrong head entry, cst deposited is excess and UPVAT short by same amount. How is this error to be rectified? How is this to be shown in the annual return?
We responded as follows:
Dear Dharam,
        If it had been a central sale (inter-state sale), then tax under the State Act (VAT) was not leviable. You have paid tax under the Central Sales Tax Act in the correct manner. If it had been a State sale then tax was leviable under the State VAT. In that case, if you have deposited tax under the CST Act, then it is wrong. Now in Annual return you show correct figures and deposit balance amount of tax under the State VAT and under the Central Sales Tax, you claim refund of tax paid in excess. There is no provision for adjusting excess amount of CST in the tax payable under the State VAT.



Query No. 89Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir pls guide me insubject to purchase of iron sheet from outside state. what i will paid advance tax for purchase of diffrent grade of iron sheet .pls provide me rate with grade. Thanking you!
We responded as follows:
Dear RAGHAVENDRA,
        In case of Iron Steel, Form-XXXVIII can be obtained only after depositing cash security. Amount of security payable is determined by the Commissioner, Commecial Tax from time to time. You can have details from local office of the Commercial Tax Department.



Query No. 90Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir pls provide me rate of advance tax of diffrent grade of iron sheet purchase from outside U.P.
We responded as follows:
Dear RAGHAVENDRA,
        Repeatition of previous query. Please refer to reply to previous query.



Query No. 91Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  varanasi
Mr.  RAGHAVENDRA, asked us:
        Sir pls guide me what will be liabilities of return filling for dealer of civil work contractor if he has registerd in VAT on dated 23/07/2010 & he had file application of compounding scheme on 20/08/2010 . after this he has received noice u/S 25(1) & 54(1)(b)for not filling of return for the month of augst 2010 what is the repply of above notice ? Liabilities of return filling will be monthly Or quaterly as per latest amendmend in Vat act if any. Thanking You!
We responded as follows:
Dear RAGHAVENDRA,
        Though in the first year in which a dealer becomes liable for payment of tax, he is required to submit Monthly returns, yet the composition Scheme provides that contractors having annual turnover of rupees one crore or more will submit Monthly returns and other contractors will submit Quarterly returns. Since the composition overrides all other provisions of the Act, therefore, for the dealers opting composition scheme, provisions given in the Scheme shall be applicable.



Query No. 92      Querist city:  MEERUT
   Querist asked us:
        Dear Sir, i want to know about the monthly return that if i submit the monthly return without annexure-A & B there will be any penelty lived on me if i sumbit the annexures alongwith Form-26 at the year end for complete year.
We responded as follows:
Dear Madame / sir,
        Without Annexures, return is incomplete. You have to submit annexures A & B alongwith the returns. As per amended provision of entry (1) of Table of sub-section (1) of Section 54 of the U.P. VAT Act, penalty can be levied for not submitting return in the prescribed manner.



Query No. 93Querist name    Mr. ajay kumar guptaQuerist city:  kanpur
Mr.  ajay, asked us:
        A Person process grams (Chana) to make gram pulses (Chana Dal). Ratio of Input putput is 100:90, Rest 10% is by-product i.e. husk. Suppose if there is Rs. 10 as input credit on total goods processed . Finisd Goods and by products ratio is 9:1, Then sholud we reverse the input tax credit By Rs. 1 ( one) ? As the husk is exmpted item. Whether goods used to produced husk not eligible to input credit ?
We responded as follows:
Dear ajay,
        Total price of manufactured goods will be aggregate of sale prices of gram dal and husk. If such aggregate (sum) is less than the cost price of dal and husk then reverse input tax credit will be computed. In that case amount of input tax credit will be limited to amount of tax on sale of gram dal. Input tax credit is available if inputs are used in manufacture of any taxable VAT goods even if by-product produced is exempt from VAT.



Query No. 94Querist name    Mr. Ramesh ChandraQuerist city:  Meerut
Mr.  Ramesh, asked us:
        Is there any change in policy of ITC in U.P.?
We responded as follows:
Dear Ramesh,
        Yes, In cases in which purchased goods are sold at a price less than the purchase price and where purchased goods are used in manufacture of other goods and manufactured goods are sold at a price lower than the cost price of the manufactured goods, then amount of input tax credit has been restricted to amount of tax on turnover of resale of purchased goods or of manufactured goods, as the case may be.



Query No. 95Querist name    Mr. Ramesh ChandraQuerist city:  Meerut
Mr.  Ramesh, asked us:
        Is there any change in policy of ITC in U.P.?
We responded as follows:
Dear Ramesh,
        Yes, In cases in which purchased goods are sold at a price less than the purchase price and where purchased goods are used in manufacture of other goods and manufactured goods are sold at a price lower than the cost price of the manufactured goods, then amount of input tax credit has been restricted to amount of tax on turnover of resale of purchased goods or of manufactured goods, as the case may be.



Query No. 96Querist name    Mr. RAGHAVENDRA DUBEYQuerist city:  VARANASI
Mr.  RAGHAVENDRA, asked us:
        Sir thaks your reply of my query no.91 but my question is stand as yet what I do about filling of Return monthly as per notice U/S 25(1) & 54(1)(b) or Quaterly as per composition scheme in first A.Y. Pls reply me earliar Thankin You!
We responded as follows:
Dear RAGHAVENDRA,
        For benefit of others, queries and answers to such queries are displayed on relevant page of web site www.vatconcept.com. This requires that queries must be clear. Your query is not clear. It seems that you or any of your clients has been served with a notice under sections referred to in your query. Please do not mention notice and sections no. Use text of notice and provision of the section, because, many of our readers will not be knowing content of sections. We would also like to request you that you should not repeat the queries. Also query control number is sent by email to a querist using the email given by the querist. In case, email is incorrect, querist does not get query control no. About your query, it seems that you are not sparing some time for studying the provisions. Composition Scheme, itself provide time period for submitting return. Provisions of the Scheme override the provisions of the Act and Rules framed under the Act. Please logon www.taxtalkindia.com and go through the composition scheme.



Query No. 97Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        Sir We are contractee of Civil contracts, Electrical contract and other small vallue contracts. Kindly advise the rate of WCT on which we will deduct tax under UP VAT act. Please also provide when WCT shall be deducted, (At the time of payment or at the time of credit).
We responded as follows:
Dear Vivek,
        An amount equal to four percent of gross payment is to be deducted at the of making payment to the contractor, either by credit or in cash or in any other manner. If contractee is not registered with the VAT Department, he is required to obtain tax deduction number (TDN).



Query No. 98Querist name    Mrs. sandeepQuerist city:  Ghaziabad
Mrs.  sandeep, asked us:
        sir please tell me that consumable item eligble for vat input claim
We responded as follows:
Dear sandeep,
        Sorry ! unless you tell us the use of consumable, i.e. resale or use in works contract or use in manufacture of goods, kind of goods manufactured, mode of disposal of manufactured goods, etc., we cannot tell you the exact answer.



Query No. 99Querist name    Mrs. sandeepQuerist city:  Ghaziabad
Mrs.  sandeep, asked us:
        sir tell me that can ITC Claim on cash memo,retail invoice, when seller is registered they have TIN
We responded as follows:
Dear sandeep,
        Please check your email validity. Query control No. mail has bounced. Regarding your query, We would like to say that without knowing your capacity as registered dealer at the time of making purchase, use or mode of disposal of purchased goods, etc. it is not possible to answer your question. For admissibility of Input Tax Credit (ITC) under U.P. VAT, you are advised to read section 13 of the U.P. VAT Act, 2008.



Query No. 100      Querist city:  hyderabad
   Querist asked us:
        we are in compounding scheem in @ 2% in UP state. we got one commercial buildings project in Noida and given to a subcontractor for back to back contract for 5% margin on total value of contract. here my question is what is effect of WCT on gross work done? who has to pay WCT to Govt. what is the process?
We responded as follows:
Dear Madame / sir,
        You are required to make deduction @ 4 % from payments which will be made by you to your sub-contractor and deposit such amount into Govt Treasury/Bank. The contractee is required to make decduction on payments made by it to you after giving benefit of the amount on which you would have already deducted amount from payments made to sub-contractor.



Query No. 101Querist name    Mr. Dharmendra KumarQuerist city:  Noida
Mr.  Dharmendra, asked us:
        Additional Tax imposed in UP comes under UPVAT. It is also chargeable on Central Sale. Please clarify - For Example on Central sale of Rs 100.00 CST @ 4% and Addnl Tax @ 1% is charged. The tax collected is Rs 50.00. While depositing same should we deposit Rs 50.00 under CST, or Rs 40.00 under CST and Rs 10.00 under UPVAT? If latter how is same reported in the Monthly returns?
We responded as follows:
Dear Dharmendra,
        Tax payable on Inter-State sale (central sale) will be deposited under the central sales tax head. In the given case, rate of central sales tax will be 5 %. Additional tax will not be mentioned on central sale invoice. You will have to deposit Rs.50.00 in the dentral sales tax head.



Query No. 102Querist name    Mr. D. KumarQuerist city:  Noida
Mr.  Dharmendra, asked us:
        Additional Tax imposed in UP comes under UPVAT. It is also chargeable on Central Sale. Please clarify - For Example on Central sale of Rs 100.00 CST @ 4% and Addnl Tax @ 1% is charged. The tax collected is Rs 50.00. While depositing same should we deposit Rs 50.00 under CST, or Rs 40.00 under CST and Rs 10.00 under UPVAT? If latter how is same reported in the Monthly returns?
We responded as follows:
Dear Dharmendra,
        Repeated query, kindly see answer to earlier query.



Query No. 103Querist name    Mrs. sandeepQuerist city:  Ghaziabad
Mrs.  sandeep singh, asked us:
        sir it sample sale is exempted or not plese tell
We responded as follows:
Dear sandeep singh,
        If samples are distributed free of cost, then it is not sale of samples. If samples are given after accepting price, then it is sale of samples. Sale of samples of any taxable goods is sale of such goods and such sale is liable for payment of tax.



Query No. 104Querist name    Mrs. sandeep Querist city:  Ghaziabad
Mrs.  sandeep, asked us:
        Sir please explain that in the case of capital goods purchase from local. I T C claim with 3 year. but if capital goods (Local) clear or remove or purchse return to party how to treat this procedure
We responded as follows:
Dear sandeep,
        In the circumstances given by you, capital goods will be treated like any other goods. If the same are returned within six months, you can claim benefit of goods return and you will reverse the amount of ITC, if any claimed by you. If capital goods are returned after a period of six months from their purchase, it will be treated a sale and you will have to pay tax on such sale.



Query No. 105Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        Sir UP commercial department has issued a circular 0910006 dtd 17/04/2009 issued by UP sales Tax department in which it is stated that if Dealer brought any goods into local Area and that goods are Stock transfered/consigned or interstate sold then entry tax will not be collected. We are purchasing some goods (Raw material etc) for manufacturing and thereafter we sold out all goods to other state only scrap portion is sold out within U.P You are requested to guide us in above mentioned case whether Raw material etc purchased from outside state is liable for entry tax or not. We will be highly obliged on your kind help.
We responded as follows:
Dear Vivek,
        Entry tax is leviable on entry of goods into local area where such goods are used, consumed within the local area or are sold for consumption into that local area. If goods brought from outside the local area are, without use or consumtion, stock transferred or consigned outside the State or goods are dispatched outside the State as a result of inter-state sale, goods are not used, consumed or sold for consumption into the local area, therefore, levy of entry tax is not attracted. In your case, you use or consume goods in manufacture of other goods, you are liable for payment of entry tax. What you send outside the State are manufacturered goods and not the goods which you have brought into the local area.



Query No. 106Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        Sir UP commercial department has issued a circular 0910006 dtd 17/04/2009 issued by UP sales Tax department in which it is stated that if Dealer brought any goods into local Area and that goods are Stock transfered/consigned or interstate sold then entry tax will not be collected. We are purchasing some goods (Raw material etc) for manufacturing and thereafter we sold out all goods to other state only scrap portion is sold out within U.P You are requested to guide us in above mentioned case whether Raw material etc purchased from outside state is liable for entry tax or not. We will be highly obliged on your kind help.
We responded as follows:
Dear Vivek,
        Previous query has been repeated. Please see reply to immediate preceeding query.



Query No. 107Querist name    Mr. DIGVIJAY SINGHQuerist city:  NOIDA
Mr.  Digvijay, asked us:
        Dear Sir/Madam, While dining on a roadside resturant in Sector 29 Noida I was handed over the Bill (the Bill only mentions: CASH/BILL Date, Description, Qty, Rate and Amount, there is NO MENTION OF:NAME, ADDRESS,TIN NO etc OF THE RESTURANT)and I was charged the VAT @ 13.50%. MY QUERY:(a) Is this resturant really authorised to collect the VAT (b) Is the proprietor really depositing the VAT to the Government (c) IF in case he is bogus as he does not mention about the Name,Add,Tin Nos etc on the BILL is he at Fault. (d) How can I challenge him, what compensation can be asked from him (e) Who is the authority where the complaint could be launched.
We responded as follows:
Dear Digvijay,
        A registered dealer is required to use/issue a bill or cash memo having dealer's name, complete address, TIN, Serial no., book number, etc. printed on it. A dealer who is not registered cannot charge VAT from customers. Definitely, cash memo issued is not in proper format. You can send your complaint to Additional Commissioner, Commercial Tax, Ganga Shopping Complex, Sector-29, Noida. You should mention name and address of the restaurant and should attach a copy of cash memo received by you.



Query No. 108Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        Sir Please refer to Your reply against question no. 105. Kindly confirm whether entry tax are applicable when we brought the material for job work in U.P.
We responded as follows:
Dear Vivek,
        In U. P., Entry Tax is not leviable on all goods. Only entry of notified goods into a local area is liable to tax. If a dealer brings any of such notified goods for use as raw material or otherwise, he is liable for payment of entry tax.



Query No. 109Querist name    Mr. Anoop GodboleQuerist city:  Indore
Mr.  Anoop, asked us:
        What can i do for claiming WCT?
We responded as follows:
Dear Anoop,
        WCT is the amount of tax payable to the Government in respect of sale of goods incorporated in the works. In view of this your query is not clear. Please state your capacity e.g. contractee, contractor, etc. Also State whether by WCT you mean deduction of amount by contractee from payments made to the contractor by way of Tax Deduction at Source (VAT TDS in cases of works contracts).



Query No. 110      Querist city:  Sultanpur
   Querist asked us:
        Sir I would like to know regarding VAT credit in the following situation (1)we are purchasing consumables and other items (on which we pay vat and these are used in the manufacturing process and is eligible for ITC)with in the state.our sale consists of scrap sale and product X. product X is sold outside the state and scrap is sold to the consignee of the party in the state. so can we take the vat credit( full value of vat paid on purchase) or do we need to reverse some portion of vat credit. if we need to reverse then at what rate we need to reverse . (2)in this situation all the above facts remains same but sale of product x is partly sold with in the state and partly sold outside the state kindly provide some clarity on the situation.
We responded as follows:
Dear Madame / sir,
        If goods x are stock transferred or consigned outside the State otherwise than as a result of a sale then, in U. P. you are entitled for claiming partial amount of input tax as input tax credit. Such partial amount of input tax is the amount which has been paid or is payable in excees of the amount computed @ 4 pecent on purchase price of goods used or consumed in manufacture of goods. If you have claimed full amount of input tax as input tax credit then you have to work out excess amount claimed by you and you have to deposit such amount as reverse input tax credit.



Query No. 111      Querist city:  Sultanpur
   Querist asked us:
        Dear Sir we had a contract with an unregistered dealer for geting brouchers of the company printed. now the pronblem is that he has not charged the vat seperately in the bill, so in that case on what amount we have to calculate the vat and deposit the tax on purchase from unregistered dealer. whether we have to calculate tax payable by using the following formula amount of tax payable = rate of tax*amount of purchase/100+rate of tax. or do we need to calculate tax directly on the invoice amount. please advice in light of sec 5 of u.p vat act.
We responded as follows:
Dear Madame / sir,
        Unregistered dealer is not entitled for charging / realising VAT on sale by it whether separately or by including in the sale price. Therefore, total amount paid is the purchase price of goods. You ahve to compute VAT on total price of goods.



Query No. 112      Querist city:  Sultanpur
   Querist asked us:
        Dear Sir sir i would like to know details regarding issue of FORM C. iam a bit consufed regarding the value for which FORM C has to be issued. i mean to say whether we have to issue FORM C inclusive of CST amount or only the assessable value + excise duty. and regarding the time limit sir i read that it should be submitted with in 3 months for the quarter ending to which it pertains.so it is implied that in such case the buyer has to issue FORM C to the seller with in 3 months from the end of the Quarter. now in case the buyer has not issued FORM C with in the prescrided time frame ( and have no suffecient cause to prove the delay in issuing FORM C) then in that case what would actions can be taken against the buyer by the seller and by the commercial tax department.
We responded as follows:
Dear Madame / sir,
        You may mention words "inclusive of tax amount" where you mention amount of bill inclusive of central sales tax and "exclusive of the tax amount" where you mention amount of bill without tax amount. No adverse inference can be drawn where value has been shown without including tax amount. As it relates to your second query about submission of form C, the purchaser has not issued Form C for seeking extension of time, is a sufficient ground in itself. The selling dealer should maintain details of correspondence made with the purchaser.



Query No. 113Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        our comapany have purchased some material RS.(20000+2%=20400) against form "c" in the 1st quarter of year 2010-11 but as per requarment we have some mateial send back to party with debit note rs 2000(Including Sales Tax) sir explain in future or after ending the quarter what amount form C should be raise to party (1) 20400 (2)(20400-2000 = Rs. 18400)
We responded as follows:
Dear sandeep,
        Form C may be issued for total Bill amount. If you want, you may mention value of goods returned separately against the bill. The selling dealer would have shown sales of total amount and would be claiming benefit of goods returned in the return of the month in which goods would have been returned.



Query No. 114Querist name    Mrs. sandeepQuerist city:  Ghaziabad
Mrs.  sandeep, asked us:
        sir what is the procedure sales return in central sales tax. our company have sale the mateial in central against form "C" but due to reson our material is rejected and come back iam asking you that what is the documentaion by party. our company can reverse paid cst
We responded as follows:
Dear sandeep,
        If goods sold in the course of inter-state trade or commerce are returned within a period of six months from date of sale, exemption can be claimed in the return of month or quarter in which goods are returned. You have to maintain documents which can prove that goods had been returned. Such documents may includes copy of transport document e.g transport bilty (GR), Railway Receipt (RR), etc., credit note issued and entries in the account books.



Query No. 115Querist name    Mr. vivek agrawalQuerist city:  sidharthnagar
Mr.  vivek, asked us:
        which is the last date for submission of UP-VAT ANNUAL RETURN IN FORM 26 & FORM 23. HAS COM. TAX DEP. OF UP HAS GIVEN EXTENSION!
We responded as follows:
Dear vivek,
        Last date for submission of annual VAT return for assessment year 2009-2010 is October 31, 2010. The Commissioner, Commercial Taxes, Government of U. P. Has extended time of 90 days for submission of annual VAT return.



Query No. 116Querist name    Mr. Qazi Faheem AhmedQuerist city:  New Delhi
Mr.  Qazi, asked us:
        I am starting a rice export business. I will export rice to middle east. I will source/buy paddy from farmers in UP, get it milled, polished and packaged in 100kg sacks in UP, transport it to Delhi port through rail/road, from where it will be exported. I want to know which taxes will be applicable from buying paddy till arrival of my commodity to Delhi. What will be the sequence of taxes and how much will they be. My exim company is registered in New Delhi from past 4 yrs. Regards, Qazi
We responded as follows:
Dear Qazi,
        If you will first stock transfer rice to Delhi and your Delhi Office will sell such goods in the course of export of the goods out of territory of India, you will have to pay tax on purchase of paddy in U. P. and you will not be entitled for claiming input tax credit but if you will make sale of rice in the course of export of the goods out of territory of India from within the State of U.P., you will be entitled for claiming Input Tax Credit of the amount of tax which will be paid by you in U.P. on purchase of paddy. I would like to advise that please discuss your case with any law knowing person with all facts including facts related to mode of export. Term " from where it will be exported" is not clear from your query.



Query No. 117Querist name    Mrs. h.g. mishraQuerist city:  lucknow
Mrs.  Hari Govind, asked us:
        what is the actual late fees for who delayd to submit for 7-8
We responded as follows:
Dear Hari Govind,
        If applications (Frorm VII & Form VII) are submitted before December 31, 2010, then late fee @ 500.00 for every month or part thereof for the period of delay starting from April 01, 2009 is to be deposited and if applications are submitted after December 31, 2010 then late fee is Rs1000.00 per month or part thereof. Request for condonation of delay is to be presented before the Zonal Additional Commissioner of Commercial Taxes.



Query No. 118Querist name    Mr. Ashok Kumar PandeyQuerist city:  Lucknow
Mr.  Ashok, asked us:
        Sir,I am working in a Sugar Manufacturing unit and under routine we have to transfer our manufactured sugar in our depot which are situated in another local area in U.P. As per past practice we are selling sugar from depot within U.P and out of U.P. We are depositing Entry tax in state Govt treasury after collecting from U.P purchaser. No entry tax is collecting if any sales made to Ex-U.P purchaser. U.P commercial tax department creating pressure to deposit the entry tax from us on whole qty of depot transferred sugar. it is correct? please draw yr opinion. is entry tax applied on depot transfer of sugar by a manufacturer?
We responded as follows:
Dear Ashok,
        Yes, you are required to pay Entry Tax on sugar brought in the local area from your own sugar mill but you will not be liable on sugar which is sold by you in the course of inter-state trade or commerce (central sale). Initially, you do not know which or how much sugar will be sold in the course of inter-state trade or commerce. In that case you will pay entry tax on total quantity and thereafter, at the end of the month you will claim refund by way of reversal of entry tax. You can seek adjustment of such amount.



Query No. 119Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        SIR We are contractee of civil contractor. Kindly advice whether service tax are included in total contract price for the purpose of deducting WCT @ 4%.
We responded as follows:
Dear Vivek,
        Deduction @4 percent towards WCT is to be made on gross amount payable to the contractor.



Query No. 120      Querist city:  NOIDA
   Querist asked us:
        RESPECTED SIR. GOOD MORNING PLS ADVIVE TO YOU WORK CONTRACT AT GOVT PROJECT SALE BILL MAINSTION IN SALE BILL OF VAT AMOUNT OTHER WISE 2% DEDUSCTION OF WORKWONTRACT VALU TAX . I HOPE YOU TO KINDLY ADVICE PLS ABOVE SUBJECT
We responded as follows:
Dear Madame / sir,
        Sorry ! We could not gather facts from your query. However, we would like to mention that in U. P., deduction @2 percent towards WCT liability can be made only if assessing authority has issued such direction to the contractee. Otherwise in all cases deduction is to be made @4 percent.



Query No. 121Querist name    Mr. ranvir SinghQuerist city:  agra
Mr.  Ranvir , asked us:
        I am working in trading compay in Agra. Please tell me My Firm is purchasing against tax invoice 1000000/- Input tax Credit 50000/- and sale against tax invoice 300000/- and sale against Form - E Rs. 450000/- then Which amount of ITC.
We responded as follows:
Dear Ranvir ,
        Since sale of goods to manufacturer-exporter is exempt under notification issued clause(c) of section 7 of the U. P. VAT Act, 2008, therefore, you are not entitled for claiming Input Tax Credit in respect of purchase price of goods which are sold against Form E to manufacturer-exporter. If you have claimed ITC on total purchase, you will have to compute reverse input tax credit and deposit such amount.



Query No. 122Querist name    Mr. amit kaushikQuerist city:  gr. noida
Mr.  amit, asked us:
        How many times changes UPVAT Cess for the year 2009-10
We responded as follows:
Dear amit,
        There is nothing like UPVAT Cess. Please claify your query.



Query No. 123Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        Sir Please provide detailed procedure of Form 21. What is the liability for Purchaser.
We responded as follows:
Dear Vivek,
        Form 21, prescribed under U. P. VAT Act, 2008 is transport memo and is issued by the Commercial Tax Department to registered dealer. It is issued by selling dealer or consignor of goods to purchasing dealer or consignee of goods. Form 21 accompanies goods during transportation of goods. Purchaser has to retain it and to produce it before his assessing authority when the same is demanded.



Query No. 124Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        sir tell me about use of transport memo form - 21
We responded as follows:
Dear sandeep,
        Form 21, prescribed under U. P. VAT Act, 2008 is transport memo and is issued by the Commercial Tax Department to registered dealer. It is issued by selling dealer or consignor of goods to purchasing dealer or consignee of goods. Form 21 accompanies goods during transportation of goods. Purchaser has to retain it and to produce it before his assessing authority when the same is demanded.



Query No. 125      Querist city:  Greater Noida
   Querist asked us:
        dealer job work done in UP or central (80% cost of Material & 20% cost on Sale)above relif which section in UP vat or which form liability in central Please help
We responded as follows:
Dear Madame / sir,
        For your query please refer to Rule 9 of the U. P. VAT Rules, 2008. As it relates to levy of central sales tax on transfer of property in goods involved in the execution of goods (incorporation of material in works contract), such transaction has been defined a sale in section 2 of the Central Sales Tax Act, 1956 and sub-section (1) of section 6 of the same Act provides that every dealer making sale in the course of inter-state trade or commerce (inter-state or central sale) shall pay tax on such sale.



Query No. 126Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        sir tell me about the Using condition of transport memo form - 21 where can we use form - 21
We responded as follows:
Dear sandeep,
        Form 21, prescribed under U. P. VAT Act, 2008 is transport memo and is issued by the Commercial Tax Department to registered dealer. It is issued by selling dealer or consignor of goods to purchasing dealer or consignee of goods. Form 21 accompanies goods during transportation of goods. Purchaser has to retain it and to produce it before his assessing authority when the same is demanded. For relevant notification, please visit www.taxtalkindia.com > VAT & ENTRY TAX NOTIFICATIONS.



Query No. 127Querist name    Mr. VISHAL AGARWALQuerist city:  HASANPUR
Mr.  VISHAL, asked us:
        RULE 21(4)OF UPVAT SAYS THAT ITC SHALL NOT BE AVAILABLE IN RESPECT OF CREDIT NOTES ISSUED BY THE SELLING DEALER. WHAT DOES THIS IMPLY- 1) THE PURCHASING DEALER WILL BE DEPRIVED OF ITC @ CURRENT PERCENTAGE ON ALL CREDIT NOTE RECEIVED( DISCOUNTS AND OTHERWISE ). 2) WHAT SHALL BE THE POSITION OF SELLING DEALER IN RESPECT OF CREDIT NOTE ISSUED TO THE PURCHASING DEALER. WILL HE GET ANY RELIEF IN RESPECT OF TAX PORTION OF THE CREDIT NOTE. 3) IS THERE ANY OTHER PROVISION IN RESPECT OF DISCOUNTS RECEIVED/PAID - UNDER UPVAT
We responded as follows:
Dear VISHAL,
        Only those discounts which are allowed at the time of sale are allowable. Benefit of any discount allowed after sale is not allowable. Please go through the rule relating to determination of turnover.



Query No. 128      Querist city:  LUCKNOW
   Querist asked us:
        I would like to know whether WCT is applicable on purchase of letter head from vendor due to nature involve transfer of property with modification in original product. Secondly whether wct is applicable on prining of newspaper with Job worker where publisher is supplying Newsprint and INK.
We responded as follows:
Dear Madame / sir,
        If contract is of sale of letter head, then it will be a case of simple sale and provisions of works contract tax will not apply. Else provisions of wct will apply. Regarding your second query, we would like to say that an indivisible contract which involves transfer of property in goods and services is a works contract. Contrary, a contract which involves only services, is not a works contract for the purpose of levy of VAT or sales tax. If publisher makes available newsprint and ink to job worker then job work involves only services.



Query No. 129Querist name    Mr. VIVEK BARANWALQuerist city:  Sultanpur
Mr.  Vivek, asked us:
        Sir We are purchasing capital goods within U.P with Vat @ 13.5% This Capital goods(machine) are used for producing the goods which are stock Transfered to other state Please advise how much input Tax credit we can avail on capital goods regards Vivek
We responded as follows:
Dear Vivek,
        If you use capital goods in manufacture of taxable VAT goods and stock transfer such manufactured goods out of U.P., you are entitled for claiming input tax credit of amount of tax paid on purchase of capital goods from within the State.



Query No. 130Querist name    Mr. VISHAL AGARWALQuerist city:  J.P.NAGAR
Mr.  VISHAL, asked us:
        In respect of UPVAT will the ITC received on purchases be disallowed on credit notes received in respect of cash/trade/annual discounts earned during the year. Kindly see the matter in light of Rule 21(4) of UPVAT.
We responded as follows:
Dear VISHAL,
        When you purchase goods, you pay tax to the selling dealer and thereafter, you claim ITC of such amount of tax on the basis of tax invoice. Thereafter, there is no question of claiming ITC on the basis of credit notes received. Selling dealer has to pay tax on the sale price which has been at the time of making sale. If he subsequently allows any discount, he will not be permitted to reduce his taxable turnover. So why he will allow refund of amount of tax on amount allowed as discount later.



Query No. 131      Querist city:  Gorakhpur
   Querist asked us:
        I want to Know commodity wise vat rate and commodity code of all vat goods .
We responded as follows:
Dear Madame / sir,
        Kindly visit www.taxtalkindia.com. Create you username and password there. You will find HSN codes, tax rates and all other related matters.



Query No. 132      Querist city:  Gorakhpur
   Querist asked us:
        I want to know about Entry Tax in UP
We responded as follows:
Dear Madame / sir,
        In U. P., Entry Tax is leviable on limited number of notified goods when you bring or receive any of such goods into a local area for consumption, use or sale therein. Local area is the area governed by a local body. It is payable on value of goods. For Entry Tax Law, Entry Tax rates and other related matters, please visit www.taxtalkindia.com



Query No. 133      Querist city:  Gorakhpur
   Querist asked us:
        I want to know about WCT ( WORK CONTRACT TAX ) in UP .
We responded as follows:
Dear Madame / sir,
        Please visit INDIRECT TAX TUTORIALS page on www.vatconcept.com. WCT is the tax which is payable on deemed sale of goods incorporated in the works i.e. on transfer of property in goods involved in the execution of a works contract.



Query No. 134      Querist city:  Gorakhpur
   Querist asked us:
        I want to know slab for filing return of Vat .
We responded as follows:
Dear Madame / sir,
        Please visit www.taxtalkindia.com. On page KNOW YOUR RETURN LIABILITY. There you can find out your return frequency. Else, go through Rule 45 of the U. P. VAT Rules, 2008. Rules are also available on www.taxtalkindia.com.



Query No. 135Querist name    Mr. m. saif siddiquiQuerist city:  kanpur
Mr.  saif, asked us:
        what would be the rate of tax applicable on solar water heater in u.p. at
We responded as follows:
Dear saif,
        Matter is under dispute before the Commissioner, Commercial Taxes, Uttar Pradesh. Earlier, the Commissioner has given decision that its sale will be liable to tax @12.5 percent.



Query No. 136Querist name    Mr. m. saif siddiquiQuerist city:  kanpur
Mr.  saif, asked us:
        are tools (hand tools and machine tools)covered u/s 14 of C.S.T act
We responded as follows:
Dear saif,
        Please visit www.taxtalkindia.com. There you will find list of goods declared to be goods of special importance in inter-state trade or commerce. See the entry relating to iron-steel. If your item is included there then it is covered otherwise it is not covered.



Query No. 137Querist name    Mr. m. saif siddiquiQuerist city:  kanpur
Mr.  saif, asked us:
        imported goods not accompanied with form 21 but accompanied with bill and form 38, goods seized and penalty imposed u/s 48(5), matter lying in appeal, i need hnbl. high crt or apex crt judgement to in supprt
We responded as follows:
Dear saif,
        I do not know about the judgment if any available on this point. But under U. P. VAT there has been no notification in respect of goods for which Form-21 was to be used. First such notification has been issued on 03-11-2010 only. Also when goods are received from outside the State, Form -21 is not applicable.



Query No. 138Querist name    Mr. m. saif siddiquiQuerist city:  kanpur
Mr.  saif, asked us:
        thanks Mr. Dayal for your quick response to my query, my further question is whether manufac/dealer who have made sales agst. Form 'H' would be entitled to refund u/s 41 or not.(some ass. officer have stopped refund on the basis of apex crts. order in Monga rice mills case.
We responded as follows:
Dear saif,
        In section 41 of the U. P. VAT Act, 2008, expression "dealer who sells goods in the course of export of goods out of the territory of India" has been used. The said expression includes direct export sales and indirect export sales against Form H, both. Hence section 41 applies to dealers of both categories. What has been laid dopwn by the Apex Court in the case of Monga Rice Mills is that purchase of paddy, by rice miller who makes sale of rice against Form H, is not purchase in the course of export of goods out of the territory of India. It has not been held that sale of rice against Form H is not in the course of export of goods out of the territory of India.



Query No. 139Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        sie please tell me about the purchase and sales return procedure in central sales tax, how to draw and what to draw documentation in the case of due for C or full tax paid
We responded as follows:
Dear sandeep,
        Your query is not clear. Please send revised query.



Query No. 140      Querist city:  Dehradun
   Querist asked us:
        Dear Sir, I want to sell medicines to a doctor in UP from Uttarakhand, He does not have a VAT No. How can it be done.
We responded as follows:
Dear Madame / sir,
        If you deliver goods in Uttrakhand then VAT Law of Uttrakhand will apply. If you make inter-state sale (central sale) then you will have to realise tax on full rate which applies in case of sale of medicines in Uttrakhand. In both cases you will have to charge tax at full rate.



Query No. 141Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        Sir, I would like to know that how to treat purchase return. sir if our company have purchased the material against form "C" if this mateial will be rejected and back to party then what is the documentation will creat by our company. how to send this mateial back to party
We responded as follows:
Dear sandeep,
        Where goods are purchased subject to approval, purchase is not complete unless approval is given. In that case you have to tell the selling dealer about your decision and selling dealer will arrange for the goods. In this case, you will not issue Form C. Where purchase is unconditional, it gets completed and then it becomes a case of sales return. In that case you have to arrange transportation, etc. You have to take back your Form C and reveive credit note from the selling dealer.



Query No. 142Querist name    Mr. satish kumarQuerist city:  ghaziabad
Mr.  satish , asked us:
        what is work contract tax and how to take credit of it and how to calculate plz give me answer as soon as possible with full information
We responded as follows:
Dear satish ,
        Works contract is a contract of building, construction, making, repair maintenance, etc. of movable or immovable property. The contract involves transfer of services and goods and single indivisible price is agreed for services and goods, both. VAT laws of most of the States provide for deduction of certain percentage of amount by the contractee while making payment to the contractor towards tax payable by the contractor by way of TDS. Contractor adjusts such amount in amount of tax payable by him. For computation of works contract, please see Articles on this web site and www.taxtalkindia.com.



Query No. 143Querist name    Mr. satish kumarQuerist city:  ghaziabad
Mr.  satish , asked us:
        what is work contract tax and how to take credit of it and how to calculate plz give me answer as soon as possible with full information
We responded as follows:
Dear satish ,
        Works contract is a contract of building, construction, making, repair maintenance, etc. of movable or immovable property. The contract involves transfer of services and goods and single indivisible price is agreed for services and goods, both. VAT laws of most of the States provide for deduction of certain percentage of amount by the contractee while making payment to the contractor towards tax payable by the contractor by way of TDS. Contractor adjusts such amount in amount of tax payable by him. For computation of works contract, please see Articles on this web site and www.taxtalkindia.com.



Query No. 144Querist name    Mr. satish kumarQuerist city:  ghaziabad
Mr.  satish , asked us:
        what is work contract tax and how to take credit of it and how to calculate plz give me answer as soon as possible with full information
We responded as follows:
Dear satish ,
        Repeated query, need not to be answered. See reply to earlier query on the web site.



Query No. 145      Querist city:  ghaziabad
   Querist asked us:
        what is work contract tax and how to take credit of it and how to calculate plz give me answer as soon as possible with full information
We responded as follows:
Dear Madame / sir,
        Ooooonh....! repeated query.



Query No. 146      Querist city:  ghaziabad
   Querist asked us:
        what is work contract tax and how to calculate it what challan form required to deposit this tax
We responded as follows:
Dear Madame / sir,
        Reated query ...........



Query No. 147      Querist city:  ghaziabad
   Querist asked us:
        what is work contract tax and how to calculate it what challan form required to deposit this tax
We responded as follows:
Dear Madame / sir,
        Gentleman ! You have posted same query nine times on December 01, 2010. Why you are wasting your and my time?



Query No. 148      Querist city:  ghaziabad
   Querist asked us:
        what is work contract tax and how to calculate it what challan form required to deposit this tax
We responded as follows:
Dear Madame / sir,
        Gentleman ! You have posted same query nine times on December 01, 2010. Why you are wasting your and my time?



Query No. 149      Querist city:  ghaziabad
   Querist asked us:
        what is work contract tax and how to calculate it what challan form required to deposit this tax
We responded as follows:
Dear Madame / sir,
        Gentleman ! You have posted same query nine times on December 01, 2010. Why you are wasting your and my time?



Query No. 150      Querist city:  ghaziabad
   Querist asked us:
        what is work contract tax and how to calculate it what challan form required to deposit this tax
We responded as follows:
Dear Madame / sir,
        Gentleman ! You have posted same query nine times on December 01, 2010. Why you are wasting your and my time?



Query No. 151Querist name    Mr. VINODQuerist city:  chennai
Mr.  vinod, asked us:
        I make local purchase @4% vat. all goos are transfered to branch office outside state. Can i claim refund of vat paid.
We responded as follows:
Dear vinod,
        Where goods are stock transferred outside the State of U. P., clause (a) of sub-section (1) of section 13 of the U.P. VAT Act, 2008 provides for claiming input tax credit of only that amount which has been paid in excess of four percent of the purchase price. since you have not paid any amount in excess of four percent, therefore, you will not be entitled for claiming any amount as ITC and if you have already claimed, you will have to pay to the department whole amount as amount of Reverse Input Tax Credit.



Query No. 152      Querist city:  lucknow
   Querist asked us:
        Sir, I am into Interior decoration buisness taking govt. contracts and work orders i would like to know the tax liabilty and complete taxation procedure and how to do i go about as nothing is clear to the tax officers or the lawyers i totally misguided
We responded as follows:
Dear Madame / sir,
        It is not possible to explain complete taxation procedure here. We think that you will be executing works contract. In U.P., you will have to compute turnover of goods incorporated in the works in accordance with provisions of Rule 9 of the U. P. VAT Rules, 2008. Such rules are available on www.taxtalkindia.com. We would advise you to go through the said rule. The site also provides facility for computation of works contract tax.



Query No. 153Querist name    Mr. Munindra PandeyQuerist city:  Delhi
Mr.  Munindra, asked us:
        Sir, if in case sold goods Delhi to Noida value Rs. 25000/- below than form 31 is applicable or not, what is limit of without form 31 please suggest. thanks.
We responded as follows:
Dear Munindra,
        Form 31 is not applicable now in cases of purchases of goods from outside the State of U. P. Form 31 is now TDS certificate in cases of works contract.



Query No. 154Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir tell me what is the re-sale
We responded as follows:
Dear sandeep,
        A trader first makes purchase of goods and thereafter makes re-sale of such goods. Re-sale can be defined as sale of purchased goods in same form and condition in which those have been purchased.



Query No. 155Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir tell me about the capital goods and raw material
We responded as follows:
Dear sandeep,
        It depends on use of goods.



Query No. 156Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir our company have purchased some material. after 6 month during the use, Our company find that material is not right for our purpose sir plese tell me that how to treat this situation and what is the doucementaion
We responded as follows:
Dear sandeep,
        If you sell the material, you will have to pay VAT. If you return it to selling dealer, then also it will be a sale.



Query No. 157Querist name    Mr. puneet mathurQuerist city:  amroha
Mr.  puneet, asked us:
        explain rule 45 in up vat act.what is the procedure to file form 24 for new registered firm.
We responded as follows:
Dear puneet,
        In the first year of business, you will have to submit tax return for each calendar month and if your expected turnover for such year is rupees fifty lakhs or more, you will have to submit Online return.



Query No. 158Querist name    Mr. Saurabh GuptaQuerist city:  delhi
Mr.  saurabh, asked us:
        wct rate in chhatisgarh
We responded as follows:
Dear saurabh,
        Please search VAT Web Site of Chhatisgarh. We do not have provisions.



Query No. 159Querist name    Mr. saurabh GuptaQuerist city:  delhi
Mr.  saurabh, asked us:
        WCT rate in Chhatisgarh
We responded as follows:
Dear saurabh,
        Sorry! we do not have details about vat rates applicable in Chhatisgarh.



Query No. 160      Querist city:  VARANASHI
   Querist asked us:
        what is the entry tax on galvanised iron wire(G.I.wIRE.)
We responded as follows:
Dear Madame / sir,
        Iron steel attracts rate of Entry Tax of 1 percent of value of iron-steel.



Query No. 161Querist name    Mr. Rahul BhatnagarQuerist city:  Noida
Mr.  rahul, asked us:
        Dear sir, We have been awarded a contract of Rs 530 Lacs for civil works of a power project. The letter of award of job does not give breakup for supply & erection value separately. However following billing breakup has been subsequently agreed to. Billing Breakup S N Item Qty Rate Amount 1 Cement 1500 MT 4000/MT 60,00,000/- 2 Steel 800 MT 40000/MT 3,20,00,000/- 3 Erection 10000 sq ft 1500/sq ft 1,50,00,000/- Total 5,30,00,000/- It also states that: 1. Billing breakup is for the purpose of account payment. 2. The quantities & value against individual item shall not have any impact on the values of any addition /deletion on scope/quantity of work & on contractual scope/quantity. 3. Rates /amounts mentioned against each of the equipment or group are for the purpose of billing only & are not referred to for any other contractual purposes like scope adjustments etc. 4. In case the actual quantity executed as per contract is more than the billing breakup quantity, contractor(us) will complete the balance work without raising any bill for balance quantity. In case the actual quantity executed as per contract is less than the billing breakup quantity, contractor(us) will raise the invoice for balance quantity along with the last bill. We have procured cement & some steel from outside state and sold to customer as sale in transit. All the requirements of transit sale has been complied with. Our query is 1. Our customer has refused to issue the C form against transit sales made by us on the plea that C form can’t be issued against works contract. Is it justified? 2. Is the question of Divisible & indivisible contract relevant after the 11.05.2002 amendment of the CST Act for issue of C Form? If so, can the above contract be termed divisible. 3. Does any case law exist on above issues.
We responded as follows:
Dear rahul,
        Sorry ! Without examining all terms & conditions, it is not possible to express an opinion.



Query No. 162      Querist city:  U.P
   Querist asked us:
        Dear Sir, i am a regular register dealer in U.P and want to sale to some goods on which Vat@5 % to delhi dealer on consigment basis.would it will treat as zero tax rate sale in u.p and i will be able to claim input and no output be applicable pls sugges me and under which section it be treat.
We responded as follows:
Dear Madame / sir,
        When goods are stock transferred or consigned outside U.P. without a sale, ITC gets restricted to the difference of actual amount of ITC and amount computed @4% on purchase value. In your case you will get ITC @1 pecent of purchase price of goods. Provision given in clause (a) of sub-section (1) of section 13 of U.P. VAT Act, 2008 is applicable.



Query No. 163      Querist city:  bangalore
   Querist asked us:
        dear sir, I have purchase an used crane from Chennai what is the documents required to bring the above item to Bangalore and rate of tax applicable.Kindly mail me the details. Thanks & Regards daisy
We responded as follows:
Dear Madame / sir,
        Mode of transaction of sale is not clear. I mean that it is not clear that transaction will be an inter-state sale or a local sale in Tamilnadu. Your capacity (a registered dealer or an user)is also not clear. In these circumstances, it is not possible for us to give reply.



Query No. 164Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep singh, asked us:
        sir our company is a manufacturer unit, I asking to you that our unit can do the trading or not
We responded as follows:
Dear sandeep singh,
        You can do trading of goods but you have to submit information to the commecial tax department.



Query No. 165Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep singh, asked us:
        sir Iam asking you that in case of purchase return our company can send the material with our Invoice Becuse so many people said that it is right. pleaes show your views. Thanks
We responded as follows:
Dear sandeep singh,
        It is not purchase return. Goods are returned after purchase gets completed. After you enter purchase in your account books, you are required to keep purchase invoice with you.



Query No. 166Querist name    Shri H S MeenaQuerist city:  Kanpur
Shri  Hari, asked us:
        Can C forms be issued by purchaser against inter state sale under an indivisible works contract?
We responded as follows:
Dear Hari,
        Contractor can issue Form C in respect of only those goods which are incorporated in the works contract if such contractor is registered under the Central Sales Tax Act, 1956 for re-sale of such goods. Such goods do not include the goods in which property does not pass to the contractee.



Query No. 167Querist name    Mr. vijay pal sainiQuerist city:  delhi
Mr.  vijay , asked us:
        Applicability of Wrks Tax on works order given from Delhi alongwith master CD. Copy of master CD alongwith packaging and CD has to be billed from noida to Delhi
We responded as follows:
Dear vijay ,
        Please clarify your query with regards to nature of work and please do not use abbreviations.



Query No. 168Querist name    Mr. ParmanandQuerist city:  Gorakhpur
Mr.  Parmanand, asked us:
        SAle outside the state as defined in section 4 of the Act.
We responded as follows:
Dear Parmanand,
        A sale, which is inside a particular State, is outside of all other States.



Query No. 169      Querist city:  Noida
   Querist asked us:
        Can we adjust WCT due tax amount with VAT input credit amount? please confirm
We responded as follows:
Dear Madame / sir,
        By WTC, if you mean tax payable in respect of sale of goods involved in the execution of a works contract, amount of Input Tax Credit can be adjusted towards tax payable.



Query No. 170Querist name    Mr. Sunil BansalQuerist city:  Lucknow
Mr.  Sunil, asked us:
        We are Dealer of LPG Gas Stove and want to supply LPG Gas stove to U.P.Rajya Karamchari Kalyan Nigam who are exempted from Tax during Purchase. Sir, I want to know how we should to mention Tax amount in our Tax Invoice.
We responded as follows:
Dear Sunil,
        Where sale of any goods to U.P.Rajya Karamchari Kalyan Nigam is exempt, amount of tax cannot be realized. If sale to Karmchari Kalyaan Nigam is not exempt then you can realize tax in the normal course. If only purchase by Nigam and sale by Nigam are exempt then it does not mean that sale to U.P.Rajya Karamchari Kalyan Nigam is also exempt.



Query No. 171Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        dear sir please tell me that if our company wants to purchae some dresess for the worker of company, if company will be purchse this dresses from central like delhi sir plese clear me that Form-38 will be use for this purchase or not
We responded as follows:
Dear sandeep,
        Form XXXVIII is used for importing business related goods. It will be better if you use Form 39.



Query No. 172      Querist city:  lucknow
   Querist asked us:
        Hi I want know about Entry of Goods in UP, pls give all information.
We responded as follows:
Dear Madame / sir,
        Did you mean Entry Tax? If so, please visit wwww.taxtalkindia.com. There you will get list of all goods which attract levy of entry tax and also law relating to Entry Tax in Uttar Pradesh.



Query No. 173Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir i put a quation in front of you that if company purhcase the mateial against form - 38 and after receiving mateial, we have lost original copy of form-38 is that situation what will we do
We responded as follows:
Dear sandeep,
        Procedure has been laid down in U. P. VAT Rules. Please go through the same. You will find these rules on wwww.taxtalkindia.com.



Query No. 174Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir our company can import exempted goods on form-38 from the central or not like delhi or other state
We responded as follows:
Dear sandeep,
        No, Under the U. P. VAT Act, 2008, Form 38 is to be used only in respect of taxable goods.



Query No. 175Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        in the case of short mateial received we can levy charge entry tax autual receiving or bill quantity
We responded as follows:
Dear sandeep,
        If selling dealer has allowed you credit in respect of shortage, then you can pay entry tax on net value.



Query No. 176      Querist city:  Hyderabad
   Querist asked us:
        By mistake we have not deducted WCT but my sub contractor paid the VAT tax. Can I show the same to my tax authorities.
We responded as follows:
Dear Madame / sir,
        Under any law liability cast on a particular person cannot be transferred by such person on any other person. The amount of VAT has been paid by the sub-contractor can be a relevant factor when penalty proceedings are invoked.



Query No. 177Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir as per your statment that form -38 will be use only taxable goods sir Iam asking to you that if our company purchase the mateial which is exepted but entry tax leavable sir in this situation form 38 use or not
We responded as follows:
Dear sandeep,
        Under the Entry Tax Law Form 38 is to be used in respect of goods on which entry tax is leviable. But your previous query was related to U. P. VAT Law.



Query No. 178Querist name    Mr. vaibhab jainQuerist city:  Delhi
Mr.  vaibhab, asked us:
        We are the authorized dealer of toyota car and we also done the paint and bodyshop related work and the material consumed for that like paint are treated as consumable as we not taking the credit on input and we charge the service tax on the whole amount charge to customer. My query is that we can charge the work contract tax on this activity as this in not purely service activity. Please suggest
We responded as follows:
Dear vaibhab,
        In cases of works contract, sale price of goods incorporated works contact is not known immediately. If it is known then you can charge VAT on it. For the purpose of works contract paint is not a consumable.



Query No. 179Querist name    Mr. ANAND PRATAP SINGHQuerist city:  LUCKNOW
Mr.  ANAND, asked us:
        Dear Sir, I want to knoe the CURRENT VAT ON DIESEL GENERATOR SETS AND ITS SPARE PARTS.
We responded as follows:
Dear ANAND,
        In U. P., sale of Diesel Generating Sets is liable to Tax @12.5% along with liability of additional tax @1%.



Query No. 180Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir our company is manufacturing plastic sheet. sir in company put the fire cylender for the fire sir if this cyclender send to pary for refilling purpose in delhi i asking to you that after refilling when cylender come in the our company it party raised the Bill with 2% tax against form C and form-38 use or not because company purchase on refilling gas
We responded as follows:
Dear sandeep,
        Form C can be issued only if your company holds Registration Certificate, granted under the Central Sales Tax Act, 1956 (Form B) for such goods. Form 38 is to be used where goods are brought in connection with business.



Query No. 181Querist name    Mr. raviQuerist city:  saharanpur
Mr.  ravi , asked us:
        what is min amount(limit) for purchase against form -38 ,
We responded as follows:
Dear ravi ,
        Form 38 is to be used where purchase value of goods exceeds Rupees Five thousand.



Query No. 182Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir goods lifting lift is capital goods or not
We responded as follows:
Dear sandeep,
        It will depend on use of it.



Query No. 183Querist name    Mr. KSHITIJ KUMARQuerist city:  NEW DELHI
Mr.  KSHITIJ, asked us:
        IF BILTY IS NOT PAID IN THE COURSE OF TRANMISSION OF GOODS FROM ONE STATE TO OTHER STATE THEN ""IS IT TREATED AS INTER STATE SALE AGAINST "C" FORM?""
We responded as follows:
Dear KSHITIJ,
        Who will pay the freight depends on terms of sale contract. What is essential for an inter-state sale is that either sale should occasion the movement of goods from one State to another or sale is effected by transfer of document of title to goods during their movement from one State to another. Where purchaser expects that the seller should send goods to the place given by purchaser in another State it is an inter-state sale.



Query No. 184      Querist city:  GHAZIABAD
   Querist asked us:
        What is rate of WCT in up and what is condition?
We responded as follows:
Dear Madame / sir,
        In U. P. in case of a works contract, in respect of goods involved in the execution of a works contract, tax is to be paid by contractor at normal rates applicable to sale of such goods. contractee is required to make deduction @4 % from amounts payable to contractor. Contractor adjusts such amount towards tax payable by him in returns. Deduction may be made at some lower rate if assessing authority of contractor issues such direction to the contractee.



Query No. 185Querist name    Mr. Pradip KothivarQuerist city:  Baroda
Mr.  Pradip, asked us:
        I am doing 6-2(b) transaction,And this material i have to send for job work at another state can i send it directly for job work without taking delivery of material at final consumption place.
We responded as follows:
Dear Pradip,
        Facts are not clear. You are requested kindly to send facts in detail by giving example. You can send a fresh query.



Query No. 186Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir if our company sale the material in rajasthan. party said that please send the material at any place of delhi after party put that material his vehicle but any type of reson party vehicle not comming place of delhi in this situation how to our company come back our material from delhi
We responded as follows:
Dear sandeep,
        Facts are not clear. You can use Hindi script typed in roman. Please send the query again.



Query No. 187Querist name    Mr. Hariraj associatesQuerist city:  Ahmedabad
Mr.  Hariraj, asked us:
         Want to know about the section 14C of Gujarat Vat lump sum vat payable under composition scheme.We want to know whether the labor expense at the rate of 30% deductible from contract receipt before paying tax @ 0.6%? Awaiting for your prompt reply. Thanks.
We responded as follows:
Dear Hariraj,
        We do not have provisions of Gujarat VAT with us. But I would like to say that in cases of works contracts, under composition schemes, a contractor is required to make payment of composition money on total amount receivable including amount of labour and other services.



Query No. 188Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sriman agar hamari company ne kuch maal rajasthan kee kisi party ko becha hai, aour party kahti hai ki agar hum delhi ke kisi sthaan (place) par oos maal ko chod de to party kee gaadi oos maal ko vahaan (There) se le jaegee. sir main aapse pooch raha hoon kee agar kisi karan se party kee gaadi maal lene nahi aati to hum oos maal ko apne kaarkhane me kaise vaapas layenge kyaa kyaa kaagaj tayaar karne padegen.
We responded as follows:
Dear sandeep,
        You may use Form 38 alongwith copy of sale invoice and a declaration that purchaser has not taken delivery of goods and same are being brought back to your company business place.



Query No. 189Querist name    Mr. Amit KumarQuerist city:  Meerut
Mr.  Amit, asked us:
        Sir/Madam, This is to State that we had returned goods(Purchase Return) about Rs.3 Lakhs in the year 2007-2008 and much more in the preceeding year. I want to know that is it manadatory to get the Form "F" from the party as a proof that we had purhcase return the goods. We had used their form 38 in returning the goods.
We responded as follows:
Dear Amit,
        Yes, you are required to obtain Form F.



Query No. 190Querist name    Mr. kaushal shuklaQuerist city:  allahabad
Mr.  kaushal, asked us:
        dear sir i am govt. contractor of UPPCL.(distribution)in our work agreement majour part is labour work(about40-60%).In material we are consume bricks, sand,ballast, cement,stonepad,bamboo stick which are purchased from unregisterd delar.sir how i file retarn form 24 in upvat so that we abule to take benefit of the cost of material during audit in profit and loss account in income tax.we cannot take benefit of composition scheme and in our payment there is no deduction of sale tax by our dept. i have a TIN
We responded as follows:
Dear kaushal,
        On purchases from unregistered dealers you are liable to pay tax. You are also required to compute sale prices of goods incorporated in the works and tax payable thereon. For computing turnover of all goods incorporated in the works, you may deduct 30% amount in cases of civil works contracts. From tax payable on sale, you will adjust amount of Input Tax Credit on purchases.



Query No. 191Querist name    Mr. sumitQuerist city:  lko
Mr.  sumit, asked us:
        Fom 21-ie Transport memo is notified on IRON & Steel recently by UP Govt. Whether it is applicable on Srap Iron Business also As i know entry tax is imposed on Iron & steel but it was not imposed on scrap iron.
We responded as follows:
Dear sumit,
        Form 21 is prescribed under U. P. VAT. Therefore, Form 21 is also applicable in iron-steel scrap cases.



Query No. 192Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir our company make plastic sheet, if our company purchase some building material like brick, rodi, badarpur from local, i asking to you that how to show this type of goods in the upvat monthly return we can claim ITC in this mateial or not
We responded as follows:
Dear sandeep,
        It is to be shown in other purchases. You cannot claim input tax credit because these goods are not meant for sale or in manufacture of any goods meant for sale.



Query No. 193Querist name    Mrs. sandeep Querist city:  gzb
Mrs.  sandeep, asked us:
        sir our company make plastics sheet, sir our comapy can purchse building mateial from Central with form-C or not (building materal likes bricks,rodi,badarpur)
We responded as follows:
Dear sandeep,
        No, Form C cannot be used.



Query No. 194Querist name    Mr. mritunjayQuerist city:  varanasi
Mr.  shukla, asked us:
        dear sir i want to know that what is the maximum limit of unregisterd purchase in one financial year. and also tell me if i pay the tax on unregisterd purchas then this purchase is acceptable by the Income Tax deppt.or not
We responded as follows:
Dear shukla,
        There is no such limit. If you make purchase, why IT Department will not accept such purchase unless there is some ground for assuming that false purchases have been shown.



Query No. 195Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir agar hamari company ne delhi me kisi party ko form-"C" par maal becha hai aour 6 month se pahale pahale maal vapas aa jaata hai to sir hum sales return ke case main cst@2% ko vaapas reverce claim kar sakte hai
We responded as follows:
Dear sandeep,
        In order to compute taxable turnover of inter-state sales for the tax period in which goods are returned, value of goods returned is deducted from turnover of inter-state sales of that tax period. Thereafter, you are required to compute tax. Thereby you get benefit of tax paid on earlier sale of goods returned.



Query No. 196Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir agar hamaari company ne delhi kee kisi party ko c-form pe maal becha hai maal kee delivery ke baad party kahti hai kee main form-c nahi de sakti aour this option rakhti hai ki hum party ke anusaar batai gai kisi aour party ko maal bheja hua kewal kaagajo main show kara to this is possible (please guide me right way)
We responded as follows:
Dear sandeep,
        Sale of goods is to be shown to the actual purchaser who had entered into contract of sale. Purchaser, while entering into the contract, may ask the selling dealer for sending goods to third party. In that case too, selling dealer makes sale to the purchasing dealer and cannot show sale to third party. But delivery of those goods can be shown to third party a/c purchasing dealer. But all this will depend upon the terms and conditions of the contract. If delivery has been taken by the purchaser, delivery cannot be shown to third party.



Query No. 197Querist name    Mr. govind narayan srivastavaQuerist city:  shalimar garden
Mr.  govind, asked us:
        Dear sir, i am interested to fix mixing pant at the site of housing project developer.the contract in which i am entering,i will charge material cost ,labour cost and other fixed cost related to the operation of plant.Pl advice me if i am responsile for vat of 13.5% or i can opt for composite tax under work cotract under vat. Thank You Govind narayan srivastava
We responded as follows:
Dear govind,
        Composition scheme, announced by the Government of U. P. in relation to civil works contracts, is applicable only in respect of works contracts mentioned in the scheme. In case of any other contract composition scheme is not available. From the facts stated by you, I am of the view that your work is not covered under the scheme.



Query No. 198      Querist city:  DELHI
   Querist asked us:
        our company is registered in delhi. we want to transfer our solar panels,assest of our company to directly site of airtel teleocm towers. As we are not registered in UP . please guide if there is any requiremnt of road permit or not to transfer these assets in UP
We responded as follows:
Dear Madame / sir,
        Where any goods are brought in U.P. in connection with business, Form-38 is required. In other cases (where goods are to be received for other purposes) it is advisable that Form-39 shoul be used. This Form can be obtained from the assessing authority of the area where goods will be brought.



Query No. 199Querist name    Mr. Ashish GuptaQuerist city:  Delhi
Mr.  Ashish, asked us:
        Sir, We are engaged with sugar industries in UP. pls clerify that whether we can claim ITC on sale of Molasses (Not being main Product ), for VAT paid on purchases made in UP from Registered Dealers. Regards
We responded as follows:
Dear Ashish,
        For want of complete facts, you are advised to go through the provisions of section 13 of the U. P. VAT Act, 2008 and explanation given therein.



Query No. 200Querist name    Mr. Sachin GuptaQuerist city:  Delhi
Mr.  Sachin, asked us:
        How to calculate WCT in civil contracts under composition scheme?
We responded as follows:
Dear Sachin,
        Please go though the articles relating to works contracts available on www.vatconcept.com. For computing WCT, you can also use the facility avaiable on www.taxtalkindia.com.



Query No. 201Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir In case of stock transfer from delhi to uttar pradesh what form (road permit) will be use form-38 or form-39 tell me
We responded as follows:
Dear sandeep,
        Dealers are supposed to use Form XXXVIII.



Query No. 202Querist name    Mr. Pankaj ChaubeyQuerist city:  Lakhimpur-Kheri
Mr.  Pankaj, asked us:
        What is current rate of work contract tax and which form u would be used in related to sale tax office?. which coloum show of WCT amount in Challan form?.
We responded as follows:
Dear Pankaj,
        What you mean by work contract tax. Amount of tax deducted at source from contractor or amount of tax which a contractor has to pay in cases of works contracts.



Query No. 203Querist name    Mr. ayush kulshresthaQuerist city:  new delhi
Mr.  ayush, asked us:
        What will happen in case if an assessee has failed to submit the tds u/s 34(6) of upvat on time but afterwards he has deposited the tax alongwith interest@15%. even then assessing autority has imposed penalty under section 34(8)without the chance of being heard. plese suggest the reasonable grounds through which he can prove that he should not pay the penalty.
We responded as follows:
Dear ayush,
        You can file appeal in the matter.



Query No. 204Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir what is the difference between capital goods and raw material how to identify that what is capital goods and what is raw material please tell me
We responded as follows:
Dear sandeep,
        Capital goods are defined in relation to manufacture of goods. Thses are the goods which are used as machinery, parts and spares and do not become constituent of manufactured goods. Raw materials are the goods which become constituents of manufactured goods. form may or may not change.



Query No. 205Querist name    Mr. Abhishek TiwariQuerist city:  kanpur
Mr.  Abhishek, asked us:
        THERE IS A NEW FACILITY OF DOWNLOADING FORM 38 ONLINE. PLEASE TELL ME WHAT IS THE PROCEDURE AFTER DOWNLOAD FORM 38
We responded as follows:
Dear Abhishek,
        Please visit official web site of commercial Tax Department of Uttar Pradesh. Procedure is given there.



Query No. 206Querist name    Mr. Abhishek TiwariQuerist city:  kanpur
Mr.  Abhishek, asked us:
        IS IT COMPULSORY TO SUBMIT THE FORM 38 (BY ONLINE DOWNLOAD) IN SALE TAX OR NOT.
We responded as follows:
Dear Abhishek,
        Presently, Form 38 obtained from assessing authority may also be used. It is mandatory to submit Original copy of used Form 38 in the Department.



Query No. 207      Querist city:  NEW DELHI
   Querist asked us:
        WHAT IS WORK CONTRACT TAX? WHO IS LIABLE TO PAY WORK CONTRACT TAX? IF VAT IS LEVIED IN INVOICE THEN WHAT IS THE IMPLICATION OF WORK CONTRACT TAX? IS TDS(WC) IS SAME AS WCT
We responded as follows:
Dear Madame / sir,
        Works contract involving transfer of property in goods is an indivisible contract of sale of material and sale of services. In such a contract, single indivisible amount as remuneration is agreed in between contractee and contractor. After 46th Amendment of the Indian Constitution, now this single amount can be bifurcated in the amount receivable for the material which is incorporated in the works and the amount receivable for services which are rendered in execution of the contract. Tax payable on amount receivable in respect of goods (material) is works contract tax. It is payable by the contractor. Material may involve goods the sale of which may, under VAT, be liable to tax at different rates. Similar to Income Tax TDS, TDS (WCT) is deducted by the contractee at an uniform rate prescribed by the Government from payments made to contractor. This TDS (WCT) amount is not the actual amount of tax payable. In certain cases this may exceed the amount of tax payable and in certain cases it may fall short of amount of tax payable. As benefit of Income Tax TDS is claimed in annual return, benefit of TDS (WCT) is claimed by the contractor in the returns filed by it. Regarding your second query about realization of VAT on tax invoice, When goods are purchased by contractor from a seller, the seller collects tax on sale by it to contractor. Again contractor makes sale of these goods in the works contract. In the Constitution, transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract for cash, deferred payment or other valuable consideration, has been defined to be a sale of goods by the contractor. Contractor is liable for payment of tax by it on sale to contractee in the execution of the contract. VAT is a multipoint tax with facility of claiming credit of amount of tax paid on purchase of goods. In the circumatances, contractor pay tax only on value addition by it.



Query No. 208Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir what is the use of form-39 and form-21 in upvat
We responded as follows:
Dear sandeep,
        Form 39 is used while carrying goods from outside the State where goods are received otherwise than in connection of business. Form 21 is transport memo and is used while sending certain notified goods to purchaser or copnsignee of goods.



Query No. 209Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir what is the use of form-39 and form-21 in upvat
We responded as follows:
Dear sandeep,
        Repeated query. Please see answer to your previous query.



Query No. 210Querist name    Mr. VishnuQuerist city:  Mathura
Mr.  Vishnu, asked us:
        Recenntly up vat introduced a new version of Return preparation utility version returnform24v6.0. in this utility there is coloumn having title SAT Charged. Can any body confirm what is the meaning of the SAT. is it additional tax @1% or any thing else
We responded as follows:
Dear Vishnu,
        SAT is used for special additional Tax. Instead they should have used words additional tax only.



Query No. 211      Querist city:  kanpur
   Querist asked us:
        compoisition scheme for 2010-2011
We responded as follows:
Dear Madame / sir,
        There are several composition schemes. Which composition scheme you are referring to?



Query No. 212      Querist city:  Delhi
   Querist asked us:
        DearSir/Madam My querry is that "Suppose I took a contract of lift along with the installation work from the customer and I allotted the whole work to another contractor; how the taxes are applicable on both of us and also on the customer?
We responded as follows:
Dear Madame / sir,
        Sub-contractor will be liable to pay tax on the material incorporated in the works. Since, you will not be transferring property in any goods, therefore, there will be no sale in your hands.



Query No. 213Querist name    Mr. Sanjoy ChakrabortyQuerist city:  kolkata
Mr.  Sanjoy, asked us:
        Sir, my company is engaged in works contract with the Indian Railways. Recently the company has executed a contract in Orissa.Indian railways Kharagpur division has deducted TDS @ 4% ( Sales Tax)and deposited to Orissa Government as VAT of that State in saying that the works contract has been executed in Orissa. Now, my question is whether I can show it as sales in the course of inter-state sale in Form 1 for CST Return? Whether I can get any deduction in respect of Labour & other charges paid for execution that Works Contract for CTP? If yes, then where should it be shown in Form No 1? Whether I have to charge 2% CST on CTP ( if it is a sale under CST ACT)to Indian Railways on Invoice? Whether TDS Deducted and deposited in Orissa Govt. is available as credit as tax paid under CST and can be shown in point no. 11 in CST Form No. 1? Whether it is adjustable with the WBVAT input tax? How should I show such inter-state works contract in sales tax return, advice me? Our company is a manufacturer cum works contractor manufacturing the goods and using it in works contract. Whether there is any other procedure to get tax benefit under CST Act or WB VAT Act, kindly advice me. Regards Sanjoy
We responded as follows:
Dear Sanjoy,
        It will depend on terms and conditions of the contract. If goods incorporated in the works contract have moved in pursuance of the works contract from any other State to Orissa, then sale in the works contract will be in the course of inter-state trade or commerce otherwise it will be a local sale in Orissa.



Query No. 214Querist name    Mr. THAKUR SINGHQuerist city:  PANCHKULA
Mr.  THAKUR, asked us:
        What is the rate of tax calculation on CST purchase for works contract work
We responded as follows:
Dear THAKUR,
        General rates applicable to sale different goods inside the State will apply to inter-state sale in the works contract.



Query No. 215Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir agar hamari company ne form-38 par delhi (central) se maal khareeda hai, jaise hee maal factory me aata hai unload hone se pahile hee maal kee checking ho jaati hai aur kaha jaata hai kee maal reject hai sie kya hum maal ko bina kisi kaagaj ke party ke paas vaapas same vehicl main bhej sakte hai tell me the right procedure)
We responded as follows:
Dear sandeep,
        You may return goods with a rejection memo.



Query No. 216Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir our company have purchased building material aginst form-C, but as per knowldege it is wrong because form-c not for building material sir i asking to you that what is the rate of intrest on cst late payment because our compay will be pay intrest to party I want to know Intrest Rate of Late payment central sales tax
We responded as follows:
Dear sandeep,
        Rate of interest will apply of that State from which material had been purchased.



Query No. 217Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir our company have purchased building material aginst form-C, but as per knowldege it is wrong because form-c not for building material sir i asking to you that what is the rate of intrest on cst late payment because our compay will be pay intrest to party I want to know Intrest Rate of Late payment central sales tax
We responded as follows:
Dear sandeep,
        See answer to your previous query.



Query No. 218Querist name    Mr. kripaQuerist city:  deoria
Mr.  kripa, asked us:
        sir what is the maximum limit of unregisterd purchase (in amount) in one financial year.
We responded as follows:
Dear kripa,
        There is no limit of turnover of purchase from unregistered dealers.



Query No. 219Querist name    Mr. krishnaQuerist city:  gorakhpur
Mr.  pratap, asked us:
        sir i am contractor in electricity dppt. in which all materials like pole cable conductor insulator provided by the department. i have only to buy bricks sand cement and paint for grouting of pole laying of cable and painting of pole. sir how i calculate my work contact tax bcause in our work the major part (about 70%)is labour work
We responded as follows:
Dear pratap,
        If amount of labour and other services and amount of profit on such labour and other services are not verifiable from your account books then you are required to compute this amount on the basis of percentage given in rule 9 of the U.P. VAT Rules, 2008. There is no alternative. Balance amount shall be deemed turnover of goods. On turnover of goods, you will have to compute VAT tax-rate-wise for goods incorporated in the works.



Query No. 220Querist name    Mr. Dharmendra SinghQuerist city:  New Delhi
Mr.  DHARMENDRA, asked us:
        Dear sir I want to know how will work contract tax effect our sales tax return and how should take wct turnover in up vat return. I am waiting yours responce
We responded as follows:
Dear DHARMENDRA,
        Sorry! Icould not get your query. Would you explain it?



Query No. 221      Querist city:  hyderabad
   Querist asked us:
        Sir, we have got a subcontract of construction of govt college in Uttar pradesh. what are the taxes we have to pay as part of this project and how much? what about the subcontract tax?
We responded as follows:
Dear Madame / sir,
        You will have to pay VAT on goods which will be incorporated in the works. Apart from that you may also be liable for payment of entry tax on iron-steel if you receive such iron steel from outside the local area.



Query No. 222Querist name    Mr. CHIRAG SUNEJAQuerist city:  SAHARANPUR
Mr.  CHIRAG, asked us:
        Dear Sir PLease communicate under which section Wooden Carved Handicrafts are exempted from vat in Uttar Pradesh.
We responded as follows:
Dear CHIRAG,
        Under U. P. VAT, provision for exemption has not been provided in any section of the Act. Instead exempt items have been listed in Schedule-I of the U. P. VAT Act, 2008. You are advised to visit www.taxtalkindia.com. On home page you can use U.P. VAT RATE SEARCH Link.



Query No. 223Querist name    Mr. Ravindra Gupta Querist city:  Kanpur
Mr.  Ravindra , asked us:
        Dear sir, I want format of Entry tax annual return ( Form F ). Please Provide us earliest. Thanks Best Regards Ravindra Gupta
We responded as follows:
Dear Ravindra ,
        Please see reply to your previous query.



Query No. 225Querist name    Mr. Sabahat Ali KhanQuerist city:  Rampur (U.P)
Mr.  Sabahat, asked us:
        What is the procedure of W.C.T & Limit & can we deduct with contractor in Rampur
We responded as follows:
Dear Sabahat,
        If you are responsible for making TDS WCT under U. P. VAT, either you should possess TIN as a dealer or you should obtain TAX DEDUCTION NUMBER (TDN) from Commercial Tax Department. If you do not obtain TIN or TDS, you can be penalized for not obtaining TIN or TDN and for not making TDS (WCT). TDS is to be made @4% of the gross ampunt payable to the contractor. There is no minimum or maximum limit for making tax deduction.



Query No. 226Querist name    Mr. Sabahat Ali KhanQuerist city:  Rampur (U.P)
Mr.  Sabahat, asked us:
        What is the procedure of W.C.T & Limit & can we deduct with contractor in Rampur
We responded as follows:
Dear Sabahat,
        If you are responsible for making TDS WCT under U. P. VAT, either you should possess TIN as a dealer or you should obtain TAX DEDUCTION NUMBER (TDN) from Commercial Tax Department. If you do not obtain TIN or TDS, you can be penalized for not obtaining TIN or TDN and for not making TDS (WCT). TDS is to be made @4% of the gross ampunt payable to the contractor. There is no minimum or maximum limit for making tax deduction.



Query No. 227Querist name    Mr. zahid ali saifiQuerist city:  ghaziabad
Mr.  zahid, asked us:
        i want to know about full information about wct why we use wct who is able to pay this tax so please send.
We responded as follows:
Dear zahid,
        Please vist www.taxtalkindia.com. There visit link related to U.P. VAT Act, 2008. Section 34 of the Act provides for making TDS WCT. It is a mode of recovery of tax payable by contractor. Who is liable for making tax deduction has been given in the notification. You will get this notification on the same web site.



Query No. 228Querist name    Mr. KesavaQuerist city:  Lucknow
Mr.  Kesava, asked us:
        Dear Sir, Please help me in UP Entry tax which I am Paying directly to the Commercial department on purchases from Out side the State of UP. Does I am eligible to set off / Input Credit against VAT Payable by me. If yes Please let me know the provisions of UP ACt and Entry tax act. Regards Kesava +91-9000007813
We responded as follows:
Dear Kesava,
        In general, rebate of entry tax paid is not available. Only in respect of certain notified goods rebate is available. You have not mentioned name of commodity on which you are paying entry tax. Therefore, it is possible to tell you that whether or not rebate is available in respect of those goods. You are advised to visit www.taxtalkindia.com. Search notifications in respect of rebate of amount of entry tax. Also visit U.P. Entry Tax Rate. Some rebate notifications are also given on this page.



Query No. 229Querist name    Mrs. krpiaQuerist city:  varanasi
Mrs.  kripa, asked us:
        dear sir i want to know that unregiserd purchase is acceptable by income tax deppt. or not
We responded as follows:
Dear kripa,
        Sorry ! I do not deal in Income Tax provisions.



Query No. 230      Querist city:  LUCKNOW
   Querist asked us:
        1. We are into Central Airconditioning Business, if we get a project in SEZ Location, can we claim ITC on UP Purchases. 2. What is Form-D. 3. What is the relation between Form-D and SEZ Location.
We responded as follows:
Dear Madame / sir,
        If you purchase goods from U.P. and sell those goods to SEZ unit or developer against Form D, you will not be entitled for claiming Input Tax Credit in respect of goods purchased. Sale to SEZ Unit or Developer against Form D is exempt from payment of VAT. Form D can be issued only by SEZ units located in Uttar Pradesh.



Query No. 231Querist name    Mr. Jay MathurQuerist city:  Delhi
Mr.  Jay, asked us:
        Dear Sir, We are a civil contractor and are executing a contract in Greater Noida. The main raw materials are steel, cement, brick and sand. We purchase steel from Delhi using "C" Form and the other raw materials are procured from within UP from registred dealers. We have NOT opted for WCT composition scheme, and calculate the WCT liability under the Normal Scheme. Our customer is deducting WCT TDS on the bill value. Sir, please advise whether we can ignore steel while computing our WCT liability as the same has been purchased after paying CST and hence cannot be taxed again under the UP VAT. With warm regards, Jay Mathur
We responded as follows:
Dear Jay,
        The logic that you make inter-state purchase of Iron-steel after payment of Central Sales Tax and therefore, you are not liable for payment of U. P. VAT on such iron-steel is not correct. However, if sale of iron-steel, in execution of the contract, is an inter-state sale then you can claim exemption from U.P. VAT. This will depend upon the terms and conditions of the contract.



Query No. 232Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir We are contractee of civil contract. till 31.12.2010 we are deducting 2% under composition scheme. After circular no. 1011078 dtd 31.12.2010 we are deducting 4% but contractor are contesting that column 3 of above circular also directs that assessee who opted compound scheme upto 30.12.2010 all terms & condition will be according to circular for compound scheme dated 09.06.2009 which is 2%. please guide
We responded as follows:
Dear VIVEK,
        If the assessing authority of the contractor has issued direction for making deduction @2%, you will make deduction @2%. Otherwise in composition cases also deduction is to be made @4%. Rate of deduction has nothing to do with composition rate.



Query No. 233Querist name    Mr. Parveen JainQuerist city:  Ghaziabad
Mr.  Parveen, asked us:
        R/Sir, I want to get the information in relation to Uttar Pradesh W.C.T. I want to know that WCT is deductible on Payment or on Gross bill. When we have to deduct the same while making payment or on while booking bill of the contractor. Kindly forward me the required information. Thanks & Regds Parveen Jain
We responded as follows:
Dear Parveen,
        It is deductible on gross amount of the running bill.



Query No. 234      Querist city:  New Delhi
   Querist asked us:
        Please tell me that what is the prosesure of composition scheme for Fire Fighting Systems work contract & rate of tax in composition scheme & rate of tax in normal work contract of fire fighting system.
We responded as follows:
Dear Madame / sir,
        Under U. P. VAT, there is no composition Scheme of payment of tax in cases of works contracts of Fire Fighting Systems. In normal circumstances, tax is to be computed on turnover of goods those will be involved in the execution of the contract and normal rates of tax, which are applicable in case of simple sales of such goods, will be applied.



Query No. 235Querist name    Mr. kripaQuerist city:  varanasi
Mr.  kripa, asked us:
        sir i want to know that the unregisterd purchase is acceptable by the income tax deppt or not
We responded as follows:
Dear kripa,
        Sorry! We do not deal in Income Tax provisions.



Query No. 236Querist name    Mr. LALAN JHAQuerist city:  uttarpradesh
Mr.  LALAN, asked us:
        we have opted compounding scheme of u.p.under civil contract.we have find work order on 25 th day of sep.2010 but we have informed to commercial tax department on 10.01.2011.w.c.t rate on 01.01.2011is4%but our work order is belongs to last year.w.c.t rate willbe Applicable 4%or 2%.Please Suggest.
We responded as follows:
Dear LALAN,
        As per amended scheme rate of composition, rate of composition should be 4 % with the rider that you will not use imported goods exceeding 5%.



Query No. 237Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir agar hamari company kuch maal central sale against form-C (@2%) karti hai aur 6 month se pahle kuch maal vapas aa jaata hai to sir kya hum maal vaapsi kaa cst@% reverse vaapas le sakte hai
We responded as follows:
Dear sandeep,
        Yes, you can adjust such amount in tax payable by you.



Query No. 238Querist name    Mr. LALAN JHAQuerist city:  uttarpradesh
Mr.  LALAN, asked us:
        sir,I have opted compounding scheme under civil contract.I Have find work order on 25 th day of sep.2010 of uttarpradesh but we have informed to commercial tax department on 10.01.2011.According to notification no.31 st December,2010 componding rate is4%but our work order receiving date is previous year.w.c.t.rate willbe4%or 2%applicable.Please suggest.
We responded as follows:
Dear LALAN,
        As per amended U.P. Civil works composition scheme, you are liable for payment of composition money @4% with the rider that you do not use imported goods exceeding 5%.



Query No. 239      Querist city:  Delhi
   Querist asked us:
        Continuing with the previous inquiry how the service taxes are payable on which parties?
We responded as follows:
Dear Madame / sir,
        Sorry ! we do not deal in service tax.



Query No. 240Querist name    Mr. suneet kumar shuklaQuerist city:  lucknow
Mr.  suneet, asked us:
        if deposited Entry Tax in UPVAT Act so Input available or not.
We responded as follows:
Dear suneet,
        Input tax credit is available of only that amount which is paid as amount of vat paid in respect of purchase of vat goods.



Query No. 241Querist name    Mr. Ayush KulshresthaQuerist city:  new delhi
Mr.  Ayush, asked us:
        Under UPVAT can an unregistered dealer opt for Composition scheme under WCT
We responded as follows:
Dear Ayush,
        No, unregistered dealer cannot opt composition scheme.



Query No. 242Querist name    Mr. Dharmendra KumarQuerist city:  Noida
Mr.  Dharmendra, asked us:
        E-return form 24 - Which all transactions are to be reported in Annexture C
We responded as follows:
Dear Dharmendra,
        Could not get your query.



Query No. 243Querist name    Shri DharmenderQuerist city:  G Noida
Shri  Kumar, asked us:
        UP VAT E Return Form 24 Annex C Which all transactions are to be reported in this
We responded as follows:
Dear Kumar,
        Could not get your query.



Query No. 244      Querist city:  Lucknow
   Querist asked us:
        Please inform regarding VAT to be charged on Sulphur component for Agriculture use. 1. Bentonote Sulphur. 2. NP-20:20:0:13 (Fertilizer)-- Sulphur-13%
We responded as follows:
Dear Madame / sir,
        Please visit www.taxtalkindia.com VAT RATE SEARCH page. Search fertilizer.



Query No. 245Querist name    Mr. Dharmender KumarQuerist city:  Noida
Mr.  Dharmender, asked us:
        UP VAT E Return Form Annex C - which all transactions are to be shown in this annexture? Regards
We responded as follows:
Dear Dharmender,
        Could not get your query. Please explain what you want to know.



Query No. 246Querist name    Mr. Dharmender KumarQuerist city:  Noida
Mr.  Dharmender, asked us:
        UP VAT E Return Form Annex C - which all transactions are to be shown in this annexture? Regards
We responded as follows:
Dear Dharmender,
        Could not get your query.



Query No. 247Querist name    Mr. Dharmender KumarQuerist city:  Noida
Mr.  Dharmender, asked us:
        UP VAT E Return Form Annex C - which all transactions are to be shown in this annexture? Regards
We responded as follows:
Dear Dharmender,
        This query has been repeated several times. We do not remember which Form you are referring to.



Query No. 248      Querist city:  Noida
   Querist asked us:
        UP VAT E Return Form 24 Annex C - which all transactions are to be shown in this annexture? Regards
We responded as follows:
Dear Madame / sir,
        Please explain nature of your business, Form 24 A_B_C etc. If annexure is required then you have to report all transactions.



Query No. 249Querist name    Shri D KumarQuerist city:  Noida
Shri  Dharmender, asked us:
        UP VAT E return Form 24 Annexture C - Which all transactions are to be reported in this annexture?
We responded as follows:
Dear Dharmender,
        Can,t say.



Query No. 250Querist name    Shri D KumarQuerist city:  Noda
Shri  Dharmender, asked us:
        UP VAT E return Form 24 Annexture C - Which all transactions are to be reported in this annexture?
We responded as follows:
Dear Dharmender,
        UP VAT E return Form 24 Annexture C - Which all transactions are to be reported in this annexture? Yes.



Query No. 251Querist name    Shri D KumarQuerist city:  Noida
Shri  Dharmender, asked us:
        In the new E return Form 24 Annexture C -- Which all transactions are to be reported
We responded as follows:
Dear Dharmender,
        In the new E return Form 24 Annexture C -- Whether all transactions are to be reported Yes.



Query No. 252      Querist city:  indore
   Querist asked us:
        Q1: Regarding Consignment agreement: in Case of Stock transfer to consignee, what are the requirements regarding consignment agreement. Q2: whether it is necessary to mention quantity in consignment agreement. Q3: whether single consignment agreement can be made for whole financial year. Q4: whether separate agreement required for stock transfer from different states.
We responded as follows:
Dear Madame / sir,
        We think that by consignee you mean a person appointed by you as your selling agent who makes sales of your goods and you pay him certain commission as renumeration. Then relation in between you and such person will be of principal and agent. In such a case, agent never becomes owner of goods and he works for you. You can appoint an agent for any period irrespective of quantity of goods. In a case of stock transfer or consignment neither contract of sale should occasion movement of goods nor a sale should be effected by transger of documents of title to goods during movement of such goods from one State to another. When goods are sold in the State of transfer, sale should be a sale inside that State. Under a single aggrement goods may be transferred from various States, as may be agreed.



Query No. 253      Querist city:  New Delhi
   Querist asked us:
        Sorry for the incomplete query. We have manufacturing & trading company. The latest Form 24 for E return has a new annexture C. Kindly advise which all Purchase and/or Sales are to be shown in this annexture?
We responded as follows:
Dear Madame / sir,
        Form 24 does not have Annexure C. If you are talking about Form 24-B, then I would say that all purchases made for various purposes are to be shown under various heads in the Annexure.



Query No. 254Querist name    Mr. LALAN JHAQuerist city:  UTTARPRADESH
Mr.  LALAN, asked us:
        Sir,I have find FQQ Series NO.3874401 TO 3874500 NOS.from Commercial tax department on 21.05.2008.Low Value &high value forms were equal on that time but Dept. issued us form under low value and form is Punched under low value.Is form will be applicable to use outside U.P.Please Suggest us.
We responded as follows:
Dear LALAN,
        You cannot use low value Forms for importing high value goods. You should get them exchanged from the Department. Also check validity of such Forms from the Department.



Query No. 255Querist name    Mr. S RAJAGOPALANQuerist city:  GHAZIABAD
Mr.  S, asked us:
        You are aware that there is entry tax in UP State on certain commodities purchased, which includes sugar also. Accordingly, we are paying the entry tax on the supplies of sugar received from mills and shown in their bills. We would like to know whether the entry tax paid can be availed as input tax credit against the monthly VAT payable to the Deptt. If it is eligible for ITC, can we claim for the past periods ? Further, whether entry tax is payable on sugar purchased from outside the state of UP. If the sugar purchased is imported sugar from outside the UP State, whether entry tax is payable and if so who will pay whether the seller or buyer. Kindly advise Regards, S.Rajagopalan 0 9868169984
We responded as follows:
Dear S,
        Input Tax Credit of entry tax paid on sugar is not available.



Query No. 256Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir please clear me that what is the entry tax taxable value or which amout should be allow for entry tax like basic+sales tax+freight or only basic (
We responded as follows:
Dear sandeep,
        Entry Tax is payable on gross value of goods and such value includes all taxes, levies and frieght, etc. Such value is defined in section 2 of the U.P. Tax on Entry of Goods into Local Areas Act. The Act can be seen on www.taxtalkindia.com.



Query No. 257Querist name    Mr. S RAJAGOPALANQuerist city:  GHAZIABAD
Mr.  S, asked us:
        Please advise on the following:- 1. Whether entry tax is payable on sugar purchased from outside the state of UP. 2. If the sugar purchased is imported sugar from outside the UP State, whether entry tax is still payable and if so who will pay whether the seller or buyer. Regards, S.Rajagopalan 0 9868169984
We responded as follows:
Dear S,
        Yes, Entry Tax is also payable on sugar brought from any place outside the State whether from a place within India or a place outside India. The person who brings or receives such sugar from outside u. P. is liable to pay tax.



Query No. 258Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir one of our vendor of Andhra Pradesh has lost form 38. He has submitted FIR copy in their local police station to us. Kindly help us what procedure we have to follow for showing consumption of Form 38
We responded as follows:
Dear VIVEK,
        You will have to intimate to you assessing authority alongwith copy of newspaper and will have to submit indemnity bond of the amount for which your assessing authority will make an order.



Query No. 259Querist name    Mr. Lalit kumar vermaQuerist city:  Ghaziabad
Mr.  Lalit, asked us:
        Dear Sir, we are registered dealer under the provisions of the U.P. Vat Act, 2008 & the CST Act, 1956, as a work contractor. we are stating our business from Ist january 2011, our tax liability is monthly according to your mentioned (know your taxliability) on this website, we want to know that we have only purchase the amount 250000 approximatly, we can mention its amount in the monthly return form-24C or not, if yes then which column, no sale in this month. (accourding to me return will be nil) plz guide me. thanks & regards For dynacon projects limited. Lalit verma (Accountant)
We responded as follows:
Dear Lalit,
        You have to submit return. In case of works contract sale happens as soon as goods are incorporated in the works. If no goods have been incorporated in the works, then sale will be reported as nil. About the column in return, for reporting purchases, there is a table at serial no.7 of the return.



Query No. 260Querist name    Mr. MANAN GUPTAQuerist city:  NOIDA
Mr.  MANAN, asked us:
        Sir, I have place of businees at Noida (UP). In 2006-07 I bought goods from out of UP (like MP/WB/Delhi/Haryana etc) worth of say Rs. 100/- against Form-C. These goods of Rs. 100 were sold in UP only u/s 6 (2) of CST Act at Rs. 120. I have collected Form-C of Rs. 120 from the Customer situated in UP State but I have E-I/II of Rs. 70 only (instead of Rs. 100). Sales Tax Authority charges Rs. 5 @ 10% on Rs. 50 (Difference b/w C-Forms and E-I/II). Sir, I want to know: (i) whether sales u/s 6(2) of CST Act is possible in UP even if we have business place in Noida (UP) under above mentioned problem. (ii) if Yes, then what are the tax implication for shortfall of E-I/II (if we have C-form of 100% sale value from customer situated in UP only). (iii) What are the tax implication for shortfall of E-I/II (if we have not C-form of 100% sale value). Regards Manan-9873081500
We responded as follows:
Dear MANAN,
        Section 6(2) of the Central Sales Tax Act, 1956 applies only to a sale which takes place by transfer of documents of title to goods during their movement from one State to another and such sale is a sale subsequent to first inter-state sale of same goods. On such a sale, which State is competent for exercising jurisdiction of assessment has been defined in proviso of sub-section (1) of section 9 of the Central Sales Tax Act, 1956. If a subsequent sale has been effected by transfer of document of title to goods during their movement from one State to another and such sale is covered by Form C and Form E1 or E2, then it is exempt otherwise the sale is liable to tax in the State from where selling dealer has obtained Form C or could have obtained Form C and where such dealer is not a registered dealer then in the State from which he has made sale. In your case, since you have used Form C obtained from the State of U.P. at Noida, if subsequent inter-state sale is not covered by Form C or E1 or E2, you will be liable to pay tax in U.P.



Query No. 261Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir please refer to your reply of my query dtd 16.02.11 Please advise for copy of news paper that news paper is in U.P. or in Andhra Pradesh That vendor is not ready to help us to make publish in A.P.
We responded as follows:
Dear VIVEK,
        Has the Andhra Pardesh dealer given you in writing about loss of Form? If not then ask him to do so. After that you publish news in one local paper and in one national paper. It is surprizing that a person who is at fault is not co-operating with you.



Query No. 262Querist name    Mr. Ram Pratap SinghQuerist city:  Chennai
Mr.  Ram, asked us:
        What is the base of Works Contract Tax? It should be deposited on Payment basis or Bill basis?
We responded as follows:
Dear Ram,
        As soon as a sale has takes place, a dealer becomes liable for payment of tax irrespective of receipt of price of goods. In view of this basis of receipt of payment is not appropriate base.



Query No. 263Querist name    Mr. Vinod SharmaQuerist city:  Delhi
Mr.  Vinod, asked us:
        Sir, Good Morning Sir my query is related to road permit when C purchased a goods under subsequent sales. suppose, A manufacture of goods in MP, B purchase of goods to A in UP and C purchase of good from B under subsequent sales ( E-1 and E-2), C is also registered in UP and goods will be use in UP, Sir my query is who will be use of road permit B or C
We responded as follows:
Dear Vinod,
        VAT Law is silent on this point. C has to use its Form in all circumstances because he is the real importer of goods. But at the time when goods enter into the territory of U. P., if C is not known then B will use its Form XXXVIII and thereafter before C takes delivery of goods, C will use its Form.



Query No. 264Querist name    Mr. anchit saxenaQuerist city:  bareilly
Mr.  anchit, asked us:
        what is work contract tax, what it's procedure?
We responded as follows:
Dear anchit,
        In cases of indivisible works contracts, tax leviable on value of goods incorporated in the works is works contract tax. For procedure and other related matters, you are advised to go through relevant articles available on this wwww.vatconcept.com.



Query No. 265      Querist city:  Gurgaon
   Querist asked us:
        The query relates to printing of books including education books on job work. As per Entry 7 of Schedule 1 of UP VAT ACT, books & periodicals are exempted goods. Whether the printing house who is printing the books for other by using his own material e.g. paper & ink is required to treat the activity as work contract and liable to charge VAT or he can assume that it would not attract VAT as ultimate product is itself not liable to VAT.
We responded as follows:
Dear Madame / sir,
        In works contract cases, tax is leviable on goods involved in the execution of works contract and in which property in goods passes from contractor to contractee. Tax is not leviable on goods built or manufactured. If sale of goods in which property passes to contractee (goods which are incorporated in the works) in general is not exempt from VAT, sale of such goods in works contract will also not be exempt. In your case, you will have to pay tax on sale paper, ink, etc irrespective of the fact that sale of product is exempt under VAT.



Query No. 266Querist name    Miss CHARU GULATIQuerist city:  DELHI
Miss  CHARU , asked us:
        What is Work Contract Tax? Who is liable to pay it to govt.? Beside Construction Contract a contract for printing pamphlets can be Works contract? WCT shall be deducted in-spite Vat has been already levied in invoice on goods value?
We responded as follows:
Dear CHARU ,
        In various Acts dealing with levy of tax on sale of goods, A works contract has been defined as a contract of manufacture, building, construction, repair or maintenace of any movable or immovable property. In a works contract values of goods and labour & other services are not bargained separately. In cases of works contract, contractor is liable for payment of VAT or WCT. As it relates to your case, without studying the conditions of contract, it is not possible to tell the nature of contract, I mean whether contract is of sale of pamphlets or it is a works contract. You have charged tax on value of material on sale invoice, it seems that the contract is divisible and hence is not a works contract.



Query No. 267Querist name    Mr. Devendra RawatQuerist city:  Dehradun
Mr.  Devendra, asked us:
        What is rate of Entry tax on Gas Pipes that are being brought by GAIL to lay gas piplines in Uttarakhand
We responded as follows:
Dear Devendra,
        Sorry! we do not have updated information about Entry Tax notifications issued by Uttrakjand Government.



Query No. 268Querist name    Mr. alok k gargQuerist city:  KASGANJ
Mr.  ALOK, asked us:
        SIR, ITC ON THE OPENING STOCK ON 01-01-2008 OF MY FIRM IS RS. 102000/- FOR WHICH ITC ORDER HAVE BEEN PASSED BY THE ASSESSING AUTHORITIES BUT I HAVE NOT CLAIMED THE ALL SIX INSTALLMENTS OF THE ABOVE ITC IN THE RETURN FORM 24 IN 2008-2009. CAN I CLAIMED THE ABOVE SIX INSTALLMENTS OF EQUAL AMOUNT IN CURRENT FORM NO 24 RETURN IN 2011-2012. PLAESE ADVICE ME ON THE ISSUE . THANK YOU SIR
We responded as follows:
Dear ALOK,
        Input tax credit instalments had become due during 2009-2010. Therefore, in the of assessment of 2009-2010, claim can be made and be allowed by the assessing authority. It cannot be claimed during 2011-2012.



Query No. 269      Querist city:  Gurgaon
   Querist asked us:
        If vendor of Ghaziabad provides us for C, what amout of CST to be charged in invoice. invoice to be genrated at Gurgaon.
We responded as follows:
Dear Madame / sir,
        If goods have moved from Gurgaon to Ghaziabad or to any place in other State and sale has been made against Form C, rate of Central Sales Tax is 2% of the sale price.



Query No. 270Querist name    Mr. NIKHIL BISHNOIQuerist city:  GHAZIABAD
Mr.  NIKHIL, asked us:
        Rules of work contractor in Contructions
We responded as follows:
Dear NIKHIL,
        Please go through Rule 9 of the U. P. VAT Rules, 2008. These rules are available on www.taxtalkindia.com.



Query No. 271Querist name    Mr. abhishek tiwariQuerist city:  kanpur
Mr.  abhishek, asked us:
        SIR IS THERE ANY PROVISION THAT OUTPUT VAT UPTO 20TH MARCH WILL BE PAID IN ADVANCE
We responded as follows:
Dear abhishek,
        Yes, Proviso of Rule 25 of the U. P. VAT Rules, 2008 runs as follows: Provided further that the net tax payable upto 20th March for the tax period ending on 31st March of an assessment year, shall be deposited and Treasury Challan of such deposit shall be submitted to the assessing authority upto 25th March of that year.



Query No. 272Querist name    Mr. Gaurav AwasthiQuerist city:  kanpur
Mr.  Gaurav , asked us:
        Dear sir I want to know that to despatch multi filament yarn from U.P(KANPUR) TO Rajasthan(jaipur) and M.P (INDORE)via road or through road transportation. Is there any kind of waybill or form will be applicalabe or not Thanks cand regards Gaurav Awasth
We responded as follows:
Dear Gaurav ,
        If you are despatching goods as a result of sale then copy of sale invoice is to be sent alongwith goods. If it is stock transfer then you have to issue and send transfer invoice alongwith goods. In case of stock transfer, you will have to collect Form F.



Query No. 273Querist name    Mr. alok k gargQuerist city:  KASGANJ
Mr.  ALOK, asked us:
        IF ITC ON OPENING STOCK CAN NOT BE CLAIMED BY DEALER IN PARTICULAR RETURNS AS DISCUSSED IN MY EARLIER QUERY. SIR PLEASE SUGGEST ME THE RIGHT PROCESSOR FOR CLAIMING THE ITC ON OPENING STOCK ON 01-01-2008 IN CURRENT RETURNS. CAN THE ASSESSING AUTHORITIES ALLOW THE SAME TO CLAIM ITC ON OPENING STOCK IN CURRENT RETURNS. THANK YOU
We responded as follows:
Dear ALOK,
        Commissioner can permit if ITC claim was made during the prescribed period on commencement of VAT and the assessing authority has passed order for eligible amount.



Query No. 274Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        sir our company's are three unit here we hold common TIN No but our company's Address is differ. sir can our comany raised single quarterly form "C" on behalf Three unit if party name & address is same
We responded as follows:
Dear sandeep,
        Single Declaration in Form C may cover transactions made in a quarter in between same two dealers. Here two dealers are company and purchasing dealer. Units are not dealers. Company is dealer. But all units should be located within the same State.



Query No. 275Querist name    Mr. Mohd NadeemQuerist city:  Kanpur
Mr.  Nadeem, asked us:
        Sir, we were send a Form38 from Kanpur to delhi to our supplier through courier, but unfortunately the said envelope loss by courier service before reaching the supplier in delhi. Now, I want to know what procedure we follow to inform ST department(UP Trade tax).
We responded as follows:
Dear Nadeem,
        You should immediately inform your assessing authority. You are required to publish news about loss of Form 38 in two newspapers, one local and other that of national level. Assessing authority will issue direction for furnishing Indemnity Bond. You will have to submit Indemnity Bond.



Query No. 276Querist name    Mr. diwaker jainQuerist city:  ghaziabad
Mr.  diwaker, asked us:
        Sir, I am a registered dealer of Iron & Steel. My registration has made in 2006. I want to purchase the Varrious cattegory of Iron & steel from Delhi for trading purpose. I want to know the rate of Advance tax for obtain form 38 from department. thanks Mob.09810090679
We responded as follows:
Dear diwaker,
        Sorry ! We do not have copy of order passed by the Commissioner. Please visit the Web Site of U. P. Commercial Tax Department and search such order under VAT Circulars. Order must be there.



Query No. 277Querist name    Mr. Mohd NadeemQuerist city:  kanpur
Mr.  Nadeem, asked us:
        Thanks for your response for our query (no.'FQ273Nadeem3/17/2011'). can you please arrange format of Indemnity Bond (what matter should by type on Indemnity bond)
We responded as follows:
Dear Nadeem,
        Please visit official Web Site of Commercial Tax Department. Search format of Imdemnity Bond under U.P. VAT Forms.



Query No. 278Querist name    Mr. Satish PundirQuerist city:  Noida
Mr.  Satish, asked us:
        What is the usage of Form-21(Transport Memo). re-sale in all over Is there any minimum or maximum amount limit or relief from use of form-21 in certain cases? Can we use this form on import & domestic goods. Thanks & regards,
We responded as follows:
Dear Satish,
        Form 21, prescribed under U.P. VAT Act, 2008, is transport memo. It is to be used while transporting goods, journey of which commences from any place within U.P. It is used only in in respect of those goods in respect of which the Government issues a notifiocation. So far, the State Government has issued notification in respect of only four commodities. Minimum quantity has also been notified. You are advised kindly to visit www.taxtalkindia.com for U. P. VAT Notifications.



Query No. 279      Querist city:  Noida
   Querist asked us:
        Please provide me the detailed information of the Time limit for Issue of WCT TDS Certificate on the WCT Deduction of Vendor.
We responded as follows:
Dear Madame / sir,
        TDS (WCT) certificates, related to any calendar month, are to be issued on or before 20th day of the month immediately following such calendar month. On the basis of these certificates, contractor has to claim benefit of tax payment against tax payable by him for such calendar month.



Query No. 280Querist name    Mrs. pushpQuerist city:  allahabad
Mrs.  pushp, asked us:
        what is rate of advance vat for iron & steel in purpose of inter state purchase dicleration form 38 issue
We responded as follows:
Dear pushp,
        Please contact your assessing authority for knowing exact amount for obtaining Form 38 for iron-steel.



Query No. 281Querist name    Mr. neeraj tomarQuerist city:  noida
Mr.  neeraj, asked us:
        sir we have textile processing unit and paying entry tax on purchase of dyes ,chemical & petcock, how can we will charge from our exporters who are giving us fabric for processing
We responded as follows:
Dear neeraj,
        I think chemicals and dyes are not liable to entry tax. Please get it clarified from your legal advisor. With refrence to your query, I would like to point out that entry tax is leviable on input part and not on finished goods. It cannot be charged on goods shown in sale invoice.



Query No. 282Querist name    Mr. Nikhil Kumar SaxenaQuerist city:  Ghaziabad
Mr.  Nikhil, asked us:
        as sales tax department Form - H deposit time (with in days)
We responded as follows:
Dear Nikhil,
        Can be submitted alongwith annual return or thereafter upto the time of assessment.



Query No. 283Querist name    Mr. Mukul KumarQuerist city:  Ghaziabad
Mr.  Mukul, asked us:
        I am the manufecterer of carbon less paper, for which we purchase paper as rwa material, so that we shall be liable to pay entry tax, but when we manufecture the carbon less paper that is also a paper then we will sell the carbon less paper then again I shall be liable under Sec. 12 of the Entry Tax Act under the head of realization of tax throughh manufecturer.
We responded as follows:
Dear Mukul,
        When you sell manufactured paper, then you collect entry tax which is payable by the purchaser to the Government. You have been authorized for collecting such tax for the Government.



Query No. 284      Querist city:  Faridabad
   Querist asked us:
        Dear Sir What is the responsibilty if Form 26 is not filed timely If any information written wrongly there is no tax manupalation Any correction can be given or not (pl state the Time Period if any) What will be the penalty for the above
We responded as follows:
Dear Madame / sir,
        For not submitting annual return, dealer can be penalized. Where annual return is submitted after expiry of prescribed time, it will not be accepted under self assessment scheme. Assessment will be made after scrutiny of records. Where incorrect figures have been reported, a revised annual return can be submitted alongwith explanation. However, it cannot be submitted after assessment. Maximum amount of penalty may be rupees ten thousand.



Query No. 285Querist name    Mr. anil goleyQuerist city:  Ghaziabad
Mr.  anil, asked us:
        we are contractor please inform us about the Composit scheme available in u.p. and what tax liability are imposed on us. what is the rate of tax 2% or 4%. if we adoped the compoundin what will be the rate of tax imposed on us.
We responded as follows:
Dear anil,
        In U. P. compounding scheme of payment of tax is available in certain types of civil works contracts. Composition money is 4% of the total amount of contract with a limitation that contractor will be entitled to purchase goods from outside the State only upto 5% of total value of goods used in an assessment year. For details please visit www.taxtalkindia.com. On home page visit Composition Schemes.



Query No. 286Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir We are contractee of Civil work for which we have to pay amount to our contractor . Kindly advise us whether WCT will be deducted on payment of service tax or not. our agreement is Rs 100 lacs (service tax shall be paid extra) kindly confirm
We responded as follows:
Dear VIVEK,
        Deduction is to be made on gross amount payable. Gross amount is the amount from which all deductions are made.



Query No. 287Querist name    Mr. surendra bansalQuerist city:  delhi
Mr.  surendra, asked us:
        Please provide of last date of UP Vat tax deposit.
We responded as follows:
Dear surendra,
        Sorry! It has gone. Tax payable upto 20th of March was to be deposited by 25th March. Now it can be deposited alongwith interest. Kashh... You would have posted this query before 25th of March.



Query No. 288      Querist city:  noida
   Querist asked us:
        Dear Sir, I am working as account assistant in a pvt. company in noida. Our Company is looking for a tax consultant who can look after WCT, Service Tax, Income Tax and other matters under one roof. Waiting for a early response from your end. Thanks Pravesh Kumar # 8860075317
We responded as follows:
Dear Madame / sir,
        You may contact Mr. Nitin Agarwal, Advocate at E-TAX SERVICES, S - 84, Block-II, Ganga Shopping Complex (near Bank of Baroda ATM), Sector-29, NOIDA-201301, U. P. INDIA Phone: 0120 - 4549599 Mobile: 9958262099 E-mail: nitin@tradevat.com. The person, apart from VAT, Entry Tax, also deals in Income Tax and service Tax.



Query No. 289Querist name    Mr. KrishnaQuerist city:  Delhi
Mr.  Krishna, asked us:
        My client a civil works contractor registered with a CST number from Maharashtra has taken a civil works contract in U.P. Now, the contractee wants to deduct the VAT TDS @4% is respect of WCT. What all registrations the contractor is required to get done for the same and what returns need to be filed for compliance of WCT
We responded as follows:
Dear Krishna,
        The contractor is required to obtain Registration under the U. P. VAT Act, 2008 and the Central Sales Tax act, 1956. Thereafter, he will not be required to obtain Registration under U.P. Entry Tax Act nor he will be required to obtain Tax Deduction Number (TDN) for the purpose of making TDS (WCT). The Contractor will be required to file returns of turnover and Tax under the U.P. VAT Act, 2008, Central sales Tax act, 1956, U. P. Entry Tax Act and TDS(WCT) Statements in prescribed Forms.



Query No. 290Querist name    Shri  Shri Durgapada AcharjyaQuerist city:  Navi Mumbai
Shri  Durgapada, asked us:
        Sie, I have sent one lorry of Mfg. goods to Sonebhadra,UP,but Ihave some mistake to fill up on form 38 road permit, I havew not mentioned the Description of Goods in road permit, Sales tax officere stop my lorry and demanding Rs. 4,00,000/- for not fill up on the Road permit, is it correct procedure? Pl. suggest me. Thanks
We responded as follows:
Dear Durgapada,
        Goods should not be detained unless motive of evasion of tax is established. If Bill No. or Transfer Invoice No. or Challan No. and date, Value of goods is mentioned on Form 38 and Copy of Bill /Challan/Transfer invoice is accompanied with goods, in my opinion, non-mentioning of description of goods is an ommission only. Officers cannot demand security unless they have issued seizure memo. You should submit reply to show cause notice issued by the officers. In the reply you should explain how tax cannot be evaded if description of goods is not mentioned on Form 38.



Query No. 291      Querist city:  Kolkata
   Querist asked us:
        What is the present CST rate in Uttarakhand/Uttaranchal. Is CSt@4.5% applicable for any products in Uttarakhand/Uttaranchal.
We responded as follows:
Dear Madame / sir,
        If inter-state sale (central sale) of goods is made against Form C, then rate of tax is 2 percent and if inter-state sale of goods is made without Form C, then rate of tax will be the rate which will be applicable if goods are sold within the State.



Query No. 292Querist name    Mrs. sandeepQuerist city:  ghaziabad
Mrs.  sandeep, asked us:
        sir please clear me that what is the vat rate on rubber waste (scrap) just like a chappal(slepper) scrap)
We responded as follows:
Dear sandeep,
        Please use rate search facility provided on wwww.taxtalkindia.com else visit Scedule Entries of U.P. VAT Act, 2008 on http://comtax.up.nic.in



Query No. 293Querist name    Mr. Aman Deep Querist city:  kanpur
Mr.  Aman, asked us:
        Dear Sir, My company is IT company and we are selling domain names and web hosting and re-selling software from July 2010 our sale the origin is out side Uttar Pradesh we have not yet registered with VAT department we have made a purchase of Rs 70,000 and a sale of less then rupees 3000.00 only what steps to follow please advise
We responded as follows:
Dear Aman,
        Without examining your nature of business in detail, we are unable to say something. You can ask for answer by moving an application before the Commissioner.



Query No. 294      Querist city:  Barabanki
   Querist asked us:
        on what amount wct applicable in u.p.
We responded as follows:
Dear Madame / sir,
        On turnover of sale of goods involved in the execution of the works contract.



Query No. 295Querist name    Mr. Anil GoleyQuerist city:  Ghaziabad
Mr.  Anil, asked us:
        i want to know with example who will issue the form D (Entry Tax)the procedure of manufacture & Trader. please tell me with 2-3 examples.
We responded as follows:
Dear Anil,
        Dealer who himself has paid entry tax or a dealer who has sold entry tax paid goods will issue Form D to the purchasing dealer.



Query No. 296Querist name    Mrs. GeralynnQuerist city:  XQYqZSGwyT
Mrs.  Geralynn, asked us:
        Query being irrelevant not displayed.
We responded as follows:
Dear Geralynn,
        We do not think proper to reply the query.



Query No. 297Querist name    Mr. MANAN GUPTAQuerist city:  NOIDA
Mr.  MANAN, asked us:
        Dear Sir, We deduct WCT TDS @ 4% while making payment to our sub-contractor. Sir, i want to know the provision in respect of WCT TDS while providing liability for payment to sub-contractor at end of the year. For example i have to pay Rs. 10000/- to sub-contractor as on 31.03.2011. Liability for payment of WCT is Rs. 400/-. Actual payment was made Rs. 4500 in April, 2011 & remaining Rs. 5500 in June, 2011. When WCT has to be deposited. Pls provide the relevant clause no./section also.
We responded as follows:
Dear MANAN,
        Deduction is to be made at the time of making payment to sub-contractor and is to be deposited by 20th day of the month next to the month in which it has been deducted.



Query No. 298Querist name    Mrs. deepak kumar tiwaryQuerist city:  ghaziabad
Mrs.  deepak, asked us:
        sir will you kindly send me list of comodities which is exempted from sale tax. if i am selling something within state then also i have to pay sale tax?. i am manufacturer then whatis proces to pay tax
We responded as follows:
Dear deepak,
        For list of items exempt from payment of VAT in U.P., please visit http://comtac.up.nic.in web site. See VAT Act and Schedule-I at the end of the U.P. VAT Act. If you are a dealer, you have to pay tax on sale of goods within the State and if you also make inter-state sale, then you will also have to pay central sales tax. Manufacturer, who makes sale of manufactured goods, is also a dealer. Tax is deposited in authorized banks alongwith treasury challan.



Query No. 299      Querist city:  Ghaziabad
   Querist asked us:
        Dear Sir, We have sold some material to a party (Ex UP) but he has returned some part of material (quality Rejection). But he has shown this material as his sale in his Return & we have taken this as Sales Return. Now he is demanding 'C Form' against his sale Pl Advise us Can we issue C Form to the party because he is not issuing our C Forms THANKS
We responded as follows:
Dear Madame / sir,
        Sorry ! In absence of complete knowledge of terms and conditions of original sale made by you, we are unable to give our copmments. It is also necessary to know that whether first sale made by you had been a completed sale. Whether goods were sold subject to condition of approval by the buyer.



Query No. 300      Querist city:  Ghaziabad
   Querist asked us:
        Dear Sir we have forgotten our password about the enquiry of Sale return & its C Form Thanks
We responded as follows:
Dear Madame / sir,
        Contact your assessing authority.



Query No. 301      Querist city:  Ghaziabad
   Querist asked us:
        Dear Sir, We have sold material to a party (Ex UP) but after consuming some material from that he has retuned balance material (as Quality Rejection) back to us. He has shown this material as his sale in his Vat Returns. We have taken this as Sales Return in our Vat Return. Now he is demanding 'C FORM" for this rejection Pl suggest us Can we issue him 'C Form' or not. He is not issung our 'C Forms' & Payments Pl give us a suggestion Thanks
We responded as follows:
Dear Madame / sir,
        Reply to this question has already been given.



Query No. 302Querist name    Mr. rochish agrawalQuerist city:  bareilly.u.p.
Mr.  rochish, asked us:
        sir, i am a paints dealer. i received 3type credit note from a paints company. 1. cash discount.2. incentive(for lifting bulk volume). 3. scheme/reward(for achiving target within certain time). so please tell me the right way to show thease credit note in my accounts book & if any vat liability on that than tell.
We responded as follows:
Dear rochish,
        You are not supposed to reduce purchase price under VAT in U.P. For the purpose of VAT in U.P., only those discounts, which are allowed at the time of purchase, are admissible.



Query No. 303      Querist city:  Ghaziabad
   Querist asked us:
        Dear Sir Regarding this Enquiry we are unable to open you response in our e mail ID stshsinghal@yahoo.co.in so you are requested to pl reply again or send View response query control No. Thanks Again & Again Thanks.... Dear Sir Query Text: Mrs. Vandana Gupta wrote to us on 4/13/2011 12:00:00 AM as follows: Dear Sir, We have sold material to a party (Ex UP) but after consuming some material from that he has retuned balance material (as Quality Rejection) back to us. He has shown this material as his sale in his Vat Returns. We have taken this as Sales Return in our Vat Return. Now he is demanding 'C FORM" for this rejection Pl suggest us Can we issue him 'C Form' or not. He is not issung our 'C Forms' & Payments Pl give us a suggestion Thanks Reply Text: We responded as follows: Dear Vandana, Reply to this question has already been given. With regards from: Mrs. Vandana Gupta wrote to us on 4/13/2011 12:00:00 AM as follows:
We responded as follows:
Dear Madame / sir,
        Please visit KNOW WHAT OTHERS HAVE ASKED link on home page of this (I mean wwww.vatconcept.com) Web Site. Find your query and reply on that page under link current page.



Query No. 304      Querist city:  lucknow
   Querist asked us:
        we are manufacturers of solvent oil from rice bran and deoiled rice bran is our byproduct.tax onricebran and solventoil is 5% whereas tax on deoiled ricebran is nil.amount of tax on ricebran is more than tax amount of solvent oil.will i get refund or adjustment of excess tax poaid on ricebran
We responded as follows:
Dear Madame / sir,
        Excess amount of Input Tax Credit can always be adjusted towards tax payable. You may also claim refund of such amount after close of the assessment year.



Query No. 305Querist name    Mrs. Dileep K. SrivastavaQuerist city:  Lucknow
Mrs.  Dileep, asked us:
        if work contract is inclusive of tax then while calculating taxable turnover will be after deducting inclusive tax or tax has to be paid on entire amount received/receivable.
We responded as follows:
Dear Dileep,
        In cases of works contracts, tax payable in respect of goods incorporated in the works is computed in specified manner. For reaching at the turnover of such goods, only specified amounts are deducted from gross amount receivable. The list of specified amounts does not include amount of WCT payable.



Query No. 306Querist name    Mrs. Dileep K. SRivastavaQuerist city:  Lucknow
Mrs.  Dileep, asked us:
        Whether cum tax value will be the taxable turnover in case of work contract or tax has to be paid on gross amount received/receivable under work contract. Work conract is inclusive of tax.
We responded as follows:
Dear Dileep,
        Under VAT, in a works contract, contractor is liable for making payment of tax on turnover of goods which have been incorporated in the works. Such turnover is determined after deducting specified amounts from gross amount receivable in respect of executed part of the works contract.



Query No. 307      Querist city:  Nagpur
   Querist asked us:
        Please give me the details related works contact tax in chhatisgarh state?
We responded as follows:
Dear Madame / sir,
        Sorry ! we do not have details of law provisions applicable in Chhattisgarh State. You are advisied to visit Official web site of VAT Department of Chhattisgarh State.



Query No. 308Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir clear me that if our company purchase capital goods Rs 90 lakh in a year from local, I asking to you that can our company claim full amount of vat input on capital goods.
We responded as follows:
Dear sandeep,
        In U.P., if capital goods are for use in manufacture or processing of taxable VAT goods or in packing of manufactured taxable VAT goods, credit of Input Tax can be claimed in three equal annual installments each installment to be claimed in the return of first tax period of the assessment year and first installment to be claimed in the assessment year which follows the assessment year of purchase of capital goods.



Query No. 309Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir please clear me that if our company purchase some exempted goods from a dealer just lika any items which mentioned in upvat act shedual 1 and then our company sale this exemted items to others company. in this type of sales can our company liabile to pay sales tax or not
We responded as follows:
Dear sandeep,
        Purchase and sale of all items mentioned in Schedule-I are totally exempt.



Query No. 310Querist name    Mr. SACHIN KUMAR TYAGIQuerist city:  GHAZIABAD
Mr.  SACHIN, asked us:
        Sir, Can we have adjusted the WCT against VAT Input
We responded as follows:
Dear SACHIN,
        WCT is the tax payable on sale of goods involved in the execution of a works contract. Under VAT, tax payable is computed on sale and amount of input tax credit is computed on purchase price of goods which have been incorporated or which are meant for incorporation in the works. Net tax payable is computed by deducting amount of input tax credit from amount of tax payable on sale.



Query No. 311Querist name    Mrs. SANDEEPQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir clear me that what is the turnover when submitted monthly sales tax return, and what is the turnover when submitted quately sales tax return
We responded as follows:
Dear sandeep,
        Please visit www.taxtalkindia.com home page. There is a link which tells you about monthly or quarterly return filing. For detailed knowledge, you may go through Rule 45 of the U. P. VAT Rules, 2008. These rules are also available on the said Web Site.



Query No. 312Querist name    Mr. vinod kumar parmarQuerist city:  U.P
Mr.  vinod, asked us:
        cst rate
We responded as follows:
Dear vinod,
        In cases of sales against Form C, rate of central Sales Tax is 2 percent or the rate of tax applicable in the State of sale whichever is lower. In cases of inter-state sales without Form C, rate of central sales tax is the same which is applicable in case of local sale of the goods.



Query No. 313Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir if our our compay want to purchase some mateial from central with a unregistered dealer sir clear me that our company purchase this material on form -38 or not
We responded as follows:
Dear sandeep,
        Form 38 has to be used. Form 38 tells that material is being imported by a registered bonafide dealer of Uttar Pradesh.



Query No. 314Querist name    Mrs. Akhilesh kumarQuerist city:  new delhi
Mrs.  Akhilesh, asked us:
        New Works contract Code in up vat
We responded as follows:
Dear Akhilesh,
        The State Government of U. P. has notified commodity codes. Works contract is a contract for execution of some work and works contract is not a commodity. Codes of the commodities in which property in goods passes in execution of a contract are to be used as commodity codes.



Query No. 315Querist name    Shri Manish Kumar AgarwalQuerist city:  Agra
Shri  manish, asked us:
        How are Assesstment of Work Contruct Contractee in UPVat
We responded as follows:
Dear manish,
        Rule 9 of the Uttar Pradesh Value Added Tax Rules, 2008 prescribes the method for the purpose of determination of total turnover of sale of goods incorporated in execution of a works contract. On the basis of purchase price of goods taxable at various rates, turnovers of sale of goods taxable at various rates are determined out of the total turnover of sale. Thereafter, tax is computed for goods taxable at different rates.



Query No. 316Querist name    Mr. rameshQuerist city:  noida
Mr.  ramesh, asked us:
        Subject: RATE OF ADDITIONAL TAX Dear Sir, We sales Sleeping Bags, garments, belt, all types of bags in Central. You are requested to inform that the additional tax is applicable or not in above commodities, if applicable, how much additional tax we should charge from customers in the Invoices. Thanks & regards, Ramesh Singh Negi TEXPLUS FIBRES PVT LTD F-124, SECTOR-8 NOIDA. PHONE NO. 9911677543
We responded as follows:
Dear ramesh,
        Yes, In U.P. Additional Tax, @ 1 percent, is applicable on sale of Sleeping Bags, garments, belt and all types of bags. If these goods are sold in the course of inter-state trade or commerce (Central Sales) without Form C, additional tax is also payable @ 1 percent.



Query No. 317      Querist city:  LUCKNOW
   Querist asked us:
        WE manufacture solvent oil from Rice Bran and deoiled ricebran is our byproduct.vat on ricebran and solvent oil is 5% whereas deoiledricebran is exempt.the sale price of solventoil(taxable) plus the sale price of deoiledricebran(exempt)is more than the purchase price of ricebran however the sale price of solventoil(taxable) is less than the purchase price of ricebran.put together the sale price is more than the purchase price.in veiw of the notification no.1101(2)79-V-1-10-1(KA)18/10 dtAugust20,2010 and amendment in section 13 will we get refund or adjustment of tax paid on ricebran as the tax paid on ricebran is more than the tax realised on solvent oil.
We responded as follows:
Dear Madame / sir,
        In your case, it cannot be said that manufactured goods are being sold at a price which is lower than the cost price of manufactured goods and therefore, newly added clause (f) in sub-section (1) of section 13 of the U.P. VAT Act, 2008 should not attract.



Query No. 318      Querist city:  Ghaziabad
   Querist asked us:
         Dear Sir, In our Qurey no.299 We have sold MS Wire to a party (Ex UP) but he has returned some part of material (quality Rejection). But he has shown this material as his sale in his Return & we have taken this as Sales Return. Now he is demanding 'C Form' against his sale As you have replied that we have made it first sale & on the codition of approval by the buyer Pl Advise us Can we issue C Form to the party because he is not issuing our C Forms THANKS.........
We responded as follows:
Dear Madame / sir,
        Whether contract of sale was subject to approval of goods. If so then it cannot be inferred that sale of rejected material had happened. Property in goods had not passed and therefore, purchaser did not become owner of the rejected goods. In these circumstances, purchaser cannot show sale of such material to you.



Query No. 319Querist name    Mr. dinesh kumar sharmaQuerist city:  meerut
Mr.  dinesh, asked us:
        I am an cost accountant and have to start VAT ADVISORY SERVICES, please post me the procedure, if any for notification with the UP GOVT.
We responded as follows:
Dear dinesh,
        No procedure has been laid down any where in the U. P. VAT Act or the Rules framed thereunder.



Query No. 320Querist name    Mr. manish guptaQuerist city:  raebareli
Mr.  manish, asked us:
        sec 13f reverse input tax credit is applied in the case , the assessee has purchase raw material wood puchased and paid @13.5% and finished product is vineer the rate of tax in up vatis 5% .is assessee will claimed full itc which is paid by him
We responded as follows:
Dear manish,
        Clause (f) of sub-section (1) of section 13 of the U. P. VAT Act, 2008 attracts only if the purchased goods are re-sold at a price which is lower than the purchase price or where purchased goods are used in manufacture of some other goods then manufactured goods are sold at a price which is less than the cost price of such manufactured goods. In your case, if sale price of vineer is not less than the cost price of vineer then aforesaiod clause (f) will not be applicable and you will not be required to work out reverse ITC.



Query No. 321Querist name    Mr. manish guptaQuerist city:  raebareli
Mr.  manish, asked us:
        sec 13f reverse input tax credit is applied in the case , the assessee has purchase raw material wood puchased and paid @13.5% and finished product is vineer the rate of tax in up vatis 5% .is assessee will claimed full itc which is paid by him
We responded as follows:
Dear manish,
        Please see reply to your earlier query.



Query No. 322      Querist city:  Gurgaon
   Querist asked us:
        Whether sale of gift vouchers (for example gift voucher of Shopper Stop/ Life Style)subject to VAT. Does it make any difference if a these gift vouchers are purchased by a separate marketing company from these entities (e.g. shopper stop/ Life Style) on discount and sell it to public at large through website of marketing company?
We responded as follows:
Dear Madame / sir,
        Question is that whether gift vouchers are goods? If gift vouchers fall under the category of goods then their sale definitely attracts liability of VAT. We cannot tell you whether or not these are goods. Please consult with some expert with all necessary material.



Query No. 323Querist name    Mr. gurpreetQuerist city:  delhi
Mr.  gurpreet, asked us:
        whether a contract given to 3rd person in SEZ is exempted from U.P.Vat (1st is owner, 2nd is contractor and 3rd person to whom a work is given by 2nd- contractor
We responded as follows:
Dear gurpreet,
        Please clarify the status of owner. Whether owner is SEZ unit or SEZ Developer or Co-Developer. If it is a unit then is it authorized by the SEZ Development Authority for such oprations?



Query No. 324Querist name    Mr. KUNAL MAJUMDARQuerist city:  LUCKNOW
Mr.  KUNAL, asked us:
        When to file return before Deputy Commissioner & Assistant Commissioner in Lucknow, Uttar Pradesh. What I mean is what should be the sales turnover limit before Deputy Commissioner & Assistant Commissioner at the time of filing the returns?
We responded as follows:
Dear KUNAL,
        We do not have departmental instructions. You can file return before any of them.



Query No. 325Querist name    Mr. KUNAL MAJUMDARQuerist city:  LUCKNOW
Mr.  KUNAL, asked us:
        When to file return before Deputy Commissioner & Assistant Commissioner in Lucknow, Uttar Pradesh. What I mean is what should be the sales turnover limit before Deputy Commissioner & Assistant Commissioner at the time of filing the returns?
We responded as follows:
Dear KUNAL,
        Repeated query, Please see reply to earlier query.



Query No. 326Querist name    Mr. KUNAL MAJUMDARQuerist city:  LUCKNOW
Mr.  KUNAL, asked us:
        When to file return before Deputy Commissioner & Assistant Commissioner in Lucknow, Uttar Pradesh. What I mean is what should be the sales turnover limit before Deputy Commissioner & Assistant Commissioner at the time of filing the returns?
We responded as follows:
Dear KUNAL,
        Repeated query.



Query No. 327Querist name    Mr. vijayQuerist city:  Sonepat
Mr.  K, asked us:
        We have opted for WCT for construction of real estate in the state of Haryana. The rate given by the builder is Rs.300/- per SFT inclusive of all taxes. In this material cost is Rs.260/- and labour cost is Rs.40/-. Now how we need to raise the bills i.e. at what rate?
We responded as follows:
Dear K,
        In a works contract value of material and value of labour and other services are not separable. Therefore, looking into the nature of contracts, for various types of contracts, State Governments have prescribed value of labour and other services and profit thereon as percentage of contract amount. For computing turnover of sale of goods, using this percentage, amount of labour and other services and profit relating to labour and services is to be computed. On deducting such amount from gross amount receivable, one can get turnover of goods. In the State of Haryana, We can not tell you that what procedure they have adopted. Please consult local VAT authorities.



Query No. 328Querist name    Mr. KrishnaQuerist city:  Delhi
Mr.  Krishna, asked us:
        My client contracted a civil works contractor for a job in U.P. Teh contractor is registered with a CST number from Maharashtra. Now, the my client has deducted the VAT TDS @4% is respect of WCT but contractor has not got his registration under UP VAT and is not cooperating to get it done. Please suggest suitable course of action for my client (the contractee)in this situation
We responded as follows:
Dear Krishna,
        Amount deducted should be deposited in the Bank authorized to accept VAT in U.P. alongwith treasury challans. Contractee is required to submit quarterly statement of tax deducted and deposited and also annual statement. The Department will deal with the contractor in its own manner.



Query No. 329Querist name    Mr. Manish Kumar AgarwalQuerist city:  Agra
Mr.  manish, asked us:
        what is lable of Entry Tax on Duplex Board,Mill Board,and Grey Board.
We responded as follows:
Dear manish,
        Please visit www.taxtalkindia.com. On home page visit link U.P. Entry Tax Rates.



Query No. 330Querist name    Mr. K.MURUGANQuerist city:  MADURAI
Mr.  KANNIAN, asked us:
        One of my client in Tamilnadu is doing work contractor for building construction paying under VAT tax on regular system. They wish to choose option of compounding tax @ 2% under tamilnadu Vat. My query under composition whether they will pay tax on unregistered purchases. KIndly advise
We responded as follows:
Dear KANNIAN,
        Sorry ! we do not have text of Composition Scheme applicable in Tamilnadu.



Query No. 331      Querist city:  Lucknow
   Querist asked us:
        WEF 01Apr11, Please illustrate by example, Differnce in Entry Tax payable on Steel Plate if purchased from Outside Municipal limit and if purchased form outside UP against Form C. We are not clear about rebate applicable.
We responded as follows:
Dear Madame / sir,
        In both cases, rebate to the extent of the amount of VAT payable on sale of Steel Plate is available in Entry Tax Payable. Amount of tax payable by a dealer on sale or purchase of any goods is the amount which is payable by the dealer himeself to the Government. In view of this, amount of VAT payable is not known till the purchased plates are sold. In our opinion, notification presents practical difficulty before the dealers. A clarification is required from the Department.



Query No. 332Querist name    Mrs. SANDEEPQuerist city:  GZB
Mrs.  SANDEEP, asked us:
        sir what is the non vat itesm please give me some example and how to show non vat item in upvat monthly return if non vat item come form central
We responded as follows:
Dear SANDEEP,
        In U. P. Liquor, Petrol, Diesel, Natural Gas, Furnace Oil, etc. have been categorize as non VAT Goods. Such Goods have been listed in Svhedule-IV of the U. P. VAT Act, 2008. Regarding your second query about showing inter-state purchase of non-vat goods in return, in gross purchases such purchases are to be shown in inter-state purchase.



Query No. 333      Querist city:  Noida
   Querist asked us:
        Dear Sir, We are Noida Based Manufacturing Company, wants to allot a contract to dealer in up for supplying and fixing of cables We would like to know what is tax liability under the UPVAT/CST/WCT, where the dealer is un-registered
We responded as follows:
Dear Madame / sir,
        An unregistered dealer is liable to pay tax in the same manner in which a registered dealer is liable to pay tax except that benefit of Input Tax Credit is not available to unregistered dealer.



Query No. 334Querist name    Mr. KAPIL KUMAR TYAGIQuerist city:  NOIDA
Mr.  KAPIL, asked us:
        What is the rate of WCT in U.P. in both cases, when the contractor is Registered Dealer or Unregistered Dealer?
We responded as follows:
Dear KAPIL,
        In U. P. in respect of goods involved in the execution of a contract in which property in goods passes to contractee, tax is payable at the same rates at which tax is payable on sale of such goods if sale is made in ordinary manner. Regarding payment of tax, there is no distinction between a registered dealer and an unregistered dealer except that facility of Input Tax Credit is not available to unregistered dealer.



Query No. 335      Querist city:  Delhi
   Querist asked us:
        We ( our company ) is into construction business. We are executing one project in Uttar pardesh. I need to know the followings : What is WCT and what is it's applicability in UP. My client, will he deduct WCT from my bills if yes at what rate ? Am I liable to deduct WCT from the bills of my sub-contractors on back to back basis i.e. the way my client is deducting. What I understood, correct me if i am wrong that this WCT (TDS ) is over and above IT ACT TDS. Now in case of IT TDS i get credit for all these TDS against my tax liability. What about WCT (TDS). Do I have to expensed it out or any credit for that is there.
We responded as follows:
Dear Madame / sir,
        Under VAT towards works contract tax (WCT), , TDS is to be made on gross amount of the bill. In case of subcontracts TDS is to be made by the contractor. It is mandatory. Contractee will not make TDS on the amount on which contractor has already made deduction from payments to sub-contractors if the contractor informs the contractee.



Query No. 336Querist name    Mr. arinj jainQuerist city:  saharanpur
Mr.  arinj, asked us:
        Sir, PLease clearify the statuse of U.P.Entry Tax on Hard Coke
We responded as follows:
Dear arinj,
        Hard Coke is covered under coal and Entry Tax is payable.



Query No. 337Querist name    Mr. RAVI MALIKQuerist city:  DELHI
Mr.  RAVI, asked us:
        STEEL FORGING PURCHASE FROM LUDHIANA(PUNJAB) TO NOIDA(U.P) CAN WE HAVE TO PAY ENTRY TAX ON ABOVE PURCHASE GOODS?
We responded as follows:
Dear RAVI,
        Entry Tax is payable on entry of goods into local area for use, consumption or sale therein. Noida is a local area. Entry tax will be payable on entry of goods into NOIDA.



Query No. 338Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir We have awarded a composite contract for Supply ,installation and commissioning of a equipment to a Party having branch office at lucknow(having TIN No.). Now party has requested that WCT is not applicable as one of his branch (manufacturing unit) at Nasik directly supply to us. He has also requested for issue of Form 38. Please advice whether we can make the payment without deducting WCT.
We responded as follows:
Dear VIVEK,
        Ask the Lucknow dealer for producing directions issued by its assessing authority for not making any deduction.



Query No. 339Querist name    Mr. arinj jainQuerist city:  saharanpur
Mr.  arinj, asked us:
        Sir, Please refer to my previous query No.FQ334arinj5/14/2011,thanx for ur kind reply but i may litle bit confused wid the Order of H'ble High Court Alld,conluded that Coke does not include Coke.Therefore, i just want to get ur kind advice that still its atract Entry Tax? Carbon Crafts Pvt.Ltd Varanasi Vs State of U.P.,writ petition No.1654 of 2005 dated 13th Dec,2005,Please clearify for wish i shall be obliged.
We responded as follows:
Dear arinj,
        There seems some mistake in "Coke does not include Coke". Please send copy of judgment at dayal@vatconcept.com.



Query No. 340Querist name    Mr. BK SrivastavaQuerist city:  Panagarh
Mr.  BK, asked us:
        Dear Sir, I on behalf of Rahul Springs Pvt. Ltd. a Manufacturing Unit-II at Panagarh, West Bengal wish to get convert Raw materila purchased from the State of Punjab, MP into semi finished goods at Kanpur under Job Work and then bring the Semi finished goods to our manufacturing Unit at panagarh in West bengal and the the Finished goods will be sold out by way of domestic sales and export sales. To complete the cycle what type of forms will require at UP Border and who will issue them and what type of taxes will attract at Kanpur. Will it be adjustable? Pls suggest the easy and economical way.
We responded as follows:
Dear BK,
        Job Worker at Kanpur will receive raw materials at Kanpur in Uttar Pradesh. He will have to arrange for Form 38 or Form 39, as may be applicable. If any of the raw material attracts levy of entry tax, job worker will have to pay the same. After doing job work, job worker will dispatch goods to West Bengal. In that case he will have to obtain Form F (under the Central Sales Tax) from you. Form 38 is road permit for bringing goods in Uttar Pradesh and it is used by registered dealers of Uttar Pradesh. Form 39 is also road permit but it is used by persons other than registered dealers where goods are meant for personal use other than business purposes.



Query No. 341Querist name    Mr. Abuzar AzmiQuerist city:  Ahmedabad
Mr.  Abuzar, asked us:
         F Form Requirement :- 1. ABC Ltd. , Sarigam ( Gujarat ) is doing conversion for Z LTD. The Raw Material moves from Z Ltd – Tarapur (Maharashtra) to ABC LTD– Sarigam (Gujarat) which is an Inter State transfer (Not by way of Sale) for conversion. 2. As per Trade Circular no. 2T of 2010 dtd. 11-01-2010, F forms are mandatory for all transactions of Inter State Transfers (Not by way of Sale) including Job work and goods return. Hence, the Sales Tax Department requires F forms in respect of goods received by us for job-work from various places outside the State and the Job work charges claimed by us. C Form Requirement :- 3. The Job work charges claimed by us includes the amount of Raw Material consumed ( such as Zinc and Lead), Consumables (such as Furnace oil, chemicals, etc.,) and Labour charges. 4. The Sales Tax Department has considered that Systematic has sold the RM ( Zinc, Lead ) to Tata Steel by way of Job work charges claimed by them. Hence, the Sales Tax Department requires C forms against the Job work bill. Please advise on both the issue, whether the AO is correct to levy a penalty for the same.
We responded as follows:
Dear Abuzar,
        Since property, in goods involved in the execution of the contract, passes from Systematic to Tara Steel, therefore, levy of tax is attracted on such goods. It will be an inter-state sale. Therefore, where Form C is not furnished, tax on inter-state sale will be levied at same rates which are applicable to local sale of such goods in Gujarat.



Query No. 343Querist name    Mr. Avik GoswamiQuerist city:  New Delhi
Mr.  Avik, asked us:
        Do I need form 31 to deliver printed books to Noida?
We responded as follows:
Dear Avik,
        Form 38 is not needed for goods which are exempt from levy of VAT.



Query No. 344Querist name    Mr. Ranjeet SinghQuerist city:  Jhansi
Mr.  Ranjeet, asked us:
        entry tax Rate in uttar pradesh if purchase outside u.p. as traders F/Y 2011-2012
We responded as follows:
Dear Ranjeet,
        Entry tax is applicable only in limited number of goods. You have not mentioned name of goods. You are advised to visit www.taxtalkindia.com. Go through the page U.P. ENTRY TAX RATES.



Query No. 345      Querist city:  Ahmedabad
   Querist asked us:
        Dear Sir, We having EPC contract with Municipal Corp.in which we have subcontracted partially to sub contractor located in UP. As such our import is more than 80% therefore we are not entitle for composition,therefore we are following vat method. For better tax planning can our subcontractor opt vat method and issue us tax invoice though we having civil work order in which labour & material are there. how wll i compute my liability it there any restriction for tax invoice or sub contractor treated as consumer since he is using material in incorporation of the work. if he opt composition then his turnover's deduction is available to us when computing vat method turnover. what is the rate of tax for deduction and for material under civil
We responded as follows:
Dear Madame / sir,
        Where sub-contract is awarded, there is no sale by the main contractor of the material which under the sub-contract is incorporated in the works by the sub-contractor. It is the sub-contractor who makes sale of such goods under works directly to the contractee. contractor is not liable for payment of tax on goods involved in the execution of the sub-contract. Contractor has to make TDS towards WCT @ 4 percent of the amount paid to the contractor. However, U. P. VAT Rules provide that amount of sub-contract will be deducted by the main contractor if sub-contractor is a registered dealer and he has shown turnover of sub-contract in his VAT returns.



Query No. 346Querist name    Miss CHARU GULATIQuerist city:  DELHI
Miss  CHARU, asked us:
        Respected sir, Is entry tax is levied on iron & steel entered in UP for job work & returned back to the state from where the goods came without sale? Is job work is also covered by the word "use"
We responded as follows:
Dear CHARU,
        Yes, Form of iron-steel received will be changed and thus iron-steel received will be consumed.



Query No. 347Querist name    Mr. Ranjeet SinghQuerist city:  Jhansi
Mr.  Ranjeet, asked us:
        On Iron & Steel and Their Products Entry Tax Rate If Purchase OutSide State As Traders Please Advise ME.
We responded as follows:
Dear Ranjeet,
        Please visit www.taxtalkindia.com. On home page please visit link U.P. Entry Tax Rates.



Query No. 348Querist name    Mr. dineshQuerist city:  noida
Mr.  dinesh, asked us:
        Dear Sir, Please let me know wheather stainless steel sheets/ pipes has the entry tax liability under UP entry tax act 2007 or not.
We responded as follows:
Dear dinesh,
        Please visit U.P. ENTRY TAX RATES page on www.taxtalkindia.com. The page provides various kinds of iron-steel which are exempt from levy of entry tax.



Query No. 349Querist name    Mr. neeraj indoriaQuerist city:  greater noida
Mr.  neeraj, asked us:
        In the Article no. 6- In Point no. 9 sub point (g) it says "all amounts representing the value of goods in which property has been transferred as a result of a sale outside the State; " Can you please explain the meaning of this line. Does it mean that goods purchased for execution of works contract would be deducted from turnover? In that case if entire purchase is made from outside UP then there will be zero liability of VAT in UP.
We responded as follows:
Dear neeraj,
        Rule 9 of the U. P. VAT Rules, 2008 prescribes the method for determining turnover of sale of goods involved in the execution of a works contract. Value of goods refers to sale value of goods. It has nothing to do with purchase value. Suppose your head office is in U.P. and branch is in Delhi. Your branch executes contracts in Delhi and uses goods from its stocks at branch. Such stocks are received from time to time from U.P., without reference to any contract. Then for U.P. VAT turnover of sale of goods involved in execution of works contracts executed in Delhi will be the value of goods in which property has been transferred as a result of a sale outside the State.



Query No. 350Querist name    Mr. arinj jainQuerist city:  saharanpur
Mr.  arinj, asked us:
        Sir, Thanx for your kind reply to my previous query no.339 and 336 dt.17.05.2011.In your kind reply its true there remains some type mistake in my query... H'able High Court Allahabad hold that"ITEM NO 17 USING THE EXPRESSION "COAL" IN THE SCHEDULE TO QUESTION DOES NOT INCLUDE "COKE".In the refered case of M/s Carbon Crafts Pvt.Ltd Varanasi Vs Stae Of U.P.And Others(2006 U.P.T.C-186)Civil Petiton No.1654 of 2005 dt.13.12.2005.A.E.Yog And Prakash Krishna-JJ.So, Please advice me that still item "coke" attracts Entry Tax even its not included in Coal.
We responded as follows:
Dear arinj,
        If judgment exists, then it is to be followed. It is binding. In view of the judgment referred, entry tax is not leviable on coke.



Query No. 351      Querist city:  NAJIBABAD
   Querist asked us:
        WE ARE A SALES DEPOT IN U.P.OF OUR MANUFACTURING FIRM BASED IN UTTRAKHAND AND WE RECEIVED THE GOODS FROM OUR UTTRAKHAND UNIT ON BEHALF OF PURCHASE INVOICE(BASED ON MARKET PRICE & AGT.FORM-F)AND ON THIS AMOUNT OF PURCHASE, WE PAID THE ENTRY TAX @5% TO THE DEPARTMENT AND IN THE TIME OF ISSUE A SALES INVOICE TO A U.P.DEALER, WE CHARGE ONLY 4% VAT IN INVOICE AND ADJUSTED IN ENTRY TAX ALSO IN RETURN AS PER NEW MODIFICATION. I WANT TO ASK THAT WHAT WE ARE ELIGIBLE TO ISSUE FORM'D' TO OUR DEALER OF U.P. AND WHAT'S THE RULE FOR THAT.
We responded as follows:
Dear Madame / sir,
        Since you have paid entry tax, you can issue Form D to your purchaser.



Query No. 352      Querist city:  ghaziabad
   Querist asked us:
        wrongly input vat credit shown in sale tax return and capital goods we are revise all return than what is penality of this
We responded as follows:
Dear Madame / sir,
        For any period, revised return can be filed by the date prescribed for filing return of succeding period. You should deposit wrongly claimed amount of ITC alongwith interest. In annual return, you should mention correct figures. If you deposit amount before issue of penalty notic, penalty should not be imposed for bonafide mistakes.



Query No. 353Querist name    Mr. rupesh kumarQuerist city:  delhi
Mr.  rupesh, asked us:
        what % of input credit is forego when stock transfer from up to other state, and what in the section for this in up vat.
We responded as follows:
Dear rupesh,
        Section 13, sub-section (1), table serial No.3 prescribes for availing ITC in case of stock transfer of the amount which is in excess of 4% of the purchase price of goods. Therefore, amount computed @4% on purchase price of goods is to be paid as Reverse ITC.



Query No. 354Querist name    Mr. rupesh kumarQuerist city:  delhi
Mr.  rupesh, asked us:
        what % of input credit is forego when stock transfer from up to other state, and what in the section for this in up vat.
We responded as follows:
Dear rupesh,
        Please refer to reply to previous query.



Query No. 355Querist name    Mr. Bhuvnesh KumarQuerist city:  Delhi
Mr.  Bhuvnesh, asked us:
        suppose we ordered some qty. of steel from outside local area on 28/04/2011 & we receive the ordered qty. on 01/05/2011. Now, in this on which date we are liable for payment of entry tax. In nutshell what is the taxable event for payment of entry tax
We responded as follows:
Dear Bhuvnesh,
        Taxable event is entry of goods into local area for use, consumption or sale therein. You are required to pay entry tax alongwith return of May 2011. But if you have paid tax earlier, you can claim benefit of the same.



Query No. 356Querist name    Mr. vikas sharma Querist city:  Ghaziabad
Mr.  vikas, asked us:
        sir, please tell me about the date of annual return filing
We responded as follows:
Dear vikas,
        Under U. P. VAT, it is 31st of October of the succeeding assessment year.



Query No. 357Querist name    Mrs. Atul KumarQuerist city:  ghaziabad
Mrs.  Atul, asked us:
        I want to know the status of Vat on good earth filling (Mitti)?
We responded as follows:
Dear Atul,
        In U. P., it is 12.5 percent alongwith liability of additional tax @ 1 %.



Query No. 358Querist name    Mr. anjanee kumarQuerist city:  allahabad
Mr.  anjanee, asked us:
        what is O.C. Stamp.
We responded as follows:
Dear anjanee,
        O.C. Stamp stands for Originating Certificate Stamp. For proving genuineness of any document issued by a registered dealer under U.P. VAT, these stamps are affixed on the document. These stamps are issued to users by the Commercial Tax Department of U.P.



Query No. 359      Querist city:  julana
   Querist asked us:
        if my firm supllies diesel in up to a factory what are tax implication
We responded as follows:
Dear Madame / sir,
        If the purchasing manufacturer provides Form D, tax is to be charged at reduced rate of 5 %.



Query No. 361Querist name    Mr. Bhuvnesh KumarQuerist city:  Delhi
Mr.  Bhuvnesh, asked us:
        What is interval period for payment of entry tax? what is due date for payment of entry tax?
We responded as follows:
Dear Bhuvnesh,
        Provisions for submission of VAT return are also applicable in case of Entry Tax.



Query No. 362      Querist city:  Hapur
   Querist asked us:
        We are a manufacturing unit located in Hapur, using steel plates as raw material. If we purchase the plates worth Rs 10000.00 from Ghaziabad we pay 4% VAT.(Total of Rs 10400.00) And for purchase made from Punjab we pay 2% CST (against Form C)(Total Rs 10200.00). At 5% Entry Tax will be Rs 500.00. What is rebate applicable on this amount in each case? The plates are not for resale.
We responded as follows:
Dear Madame / sir,
        Entry Tax will be payable @5 percent without admissibility of rebate.



Query No. 363Querist name    Mr. ajayQuerist city:  meerut
Mr.  ajay, asked us:
        Sir, I'm an individual and have to purchase some wooden beams(kari), say 1000 in numbers for my cattle shed, from Lakhimpur, could I get some tax benefit somehow as somebody suggested me Form 31, please elaborate thanks
We responded as follows:
Dear ajay,
        There is no provision for relief. You have to pay tax at full rate of tax as applicable in the State of purchase.



Query No. 364Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        DEAR SIR WE ARE DOING SCRAP SALE(IRON STEEL) CURRENTLY OUR PARTY IS OF LOCAL AREA WE ARE CHARGING 5% AS VAT AMOUNT AND ISSUING INVOICE BY AFFIXING O.C. STAMP ON INVOICE WE ARE NOT ARRANGING TRUCK SO IN INVOICE AT THE PLACE OF LR NO. WE MENTIONED " TRUCK ARRANGE BY BUYER" AND " SALE AT FACTORY GATE" WE ARE NOT PAYING ENTRY TAX AS SALE IS IN LOCAL AREA AN TRUCK IS ARRANGED BY BUYER. PLEASE GUIDE NOW WE ARE GOING TO SALE A PARTY IN JHANSI 1. WHETHER WE HAVE TO PAY ENTRY TAX OR NOT AS WE ARE NOT ARRANGING TRUCK AND SALE MADE AT FACTORY GATE. 2. IF WE ARE NOT PAYING ENTRY TAX THAN FORM 21 IS ARRANGED BY BUYER OR NOT. 3. IF WE PAY ENTRY TAX THAN WHETHER TAX RATE WILL BE 4% AS VAT AND 1 % AS ENTRY TAX. WHETHER ENTRY TAX HAS TO SHOWN IN INVOICE. REGARDS VIVEK
We responded as follows:
Dear VIVEK,
        Iron scrap does not attract liability of Entry Tax. It is exempt from levy of entry tax. Moreover, iron scrap falls under declared goods and therefore, additional tax is not leviable. VAT is to be charged and paid @4% instead of 5%. Please visit relevant links on home page of www.taxtalkindia.com



Query No. 365Querist name    Mr. VIVEK Querist city:  SULTANPUR
Mr.  VIVEK, asked us:
        DEAR SIR WE ARE DOING SCRAP SALE(IRON STEEL) CURRENTLY OUR PARTY IS OF LOCAL AREA WE ARE CHARGING 5% AS VAT AMOUNT AND ISSUING INVOICE BY AFFIXING O.C. STAMP ON INVOICE WE ARE NOT ARRANGING TRUCK SO IN INVOICE AT THE PLACE OF LR NO. WE MENTIONED " TRUCK ARRANGE BY BUYER" AND " SALE AT FACTORY GATE" WE ARE NOT PAYING ENTRY TAX AS SALE IS IN LOCAL AREA AN TRUCK IS ARRANGED BY BUYER. PLEASE GUIDE NOW WE ARE GOING TO SALE A PARTY IN JHANSI 1. WHETHER WE HAVE TO PAY ENTRY TAX OR NOT AS WE ARE NOT ARRANGING TRUCK AND SALE MADE AT FACTORY GATE. 2. IF WE ARE NOT PAYING ENTRY TAX THAN FORM 21 IS ARRANGED BY BUYER OR NOT. 3. IF WE PAY ENTRY TAX THAN WHETHER TAX RATE WILL BE 4% AS VAT AND 1 % AS ENTRY TAX. WHETHER ENTRY TAX HAS TO SHOWN IN INVOICE. REGARDS VIVEK
We responded as follows:
Dear VIVEK,
        Please refer to reply to earlier query on page "Know What Others Have Asked".



Query No. 366Querist name    Mr. rajeev kumar shukla Querist city:  sitapur
Mr.  rajeev, asked us:
        TO WHOME TRADERS EFILING OF RETURN IS COMPULSORY & UNDER WHICH SECTION.
We responded as follows:
Dear rajeev,
        Provision is not contained in U.P. VAT Act. Go through the Uttar Pradesh VAT Rules, 2008 read with circulars issued by the Commissioner. Visit http://comtax.up.nic.in. the official website of the U.P. Commercial Tax Department.



Query No. 367      Querist city:  chennai
   Querist asked us:
        Dear Sir, We purchase and sell engineering equipments under CST act,6(2)b, i.e E1 sales and also we are doing erection and commissioning work after supply based on separate work order. I want to know whether the margin money on our sales will attract service tax
We responded as follows:
Dear Madame / sir,
        Any amount received in connection with sale or supply of goods is part of sale price of goods and does not attract liability of Service Tax. Under sale by transfer of document of title, whatever amount is charged from the purchaser is sale price of goods. It includes amount of profit on sale.



Query No. 368Querist name    Mrs. sandeepQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir please clear me the upvat return form-24 who will fill form-24,form24A and form-24
We responded as follows:
Dear sandeep,
        Please go through Rule 45 of the Uttar Pradesh VAT Rules, 2008. Text is available on www.taxtalkindia.com.



Query No. 369Querist name    Mr. Bhuvnesh KumarQuerist city:  Delhi
Mr.  Bhuvnesh, asked us:
        What is the frequency of payment of entry tax & what is the frequency of filling entry tax return
We responded as follows:
Dear Bhuvnesh,
        Entry Tax is to be deposited monthwise. Frequency of filing of entry tax return depends upon the gross value of goods brought into the local area.



Query No. 370Querist name    Mrs. SANDEEPQuerist city:  gzb
Mrs.  sandeep, asked us:
        sir clear me that can we sale old machinery against form "C"
We responded as follows:
Dear sandeep,
        Yes, old machinery can be sold against Form C.



Query No. 371Querist name    Mr. Vinod Kumar PoddarQuerist city:  New Delhi
Mr.  VINOD, asked us:
        Dear Sir, please explain how to compute output vat when composition scheme is not opted,with reference to uttar pradesh.
We responded as follows:
Dear VINOD,
        I suppose that you mean computation of tax in cases of works contracts. If so, I would like to advise you to go through the link TUTORIALS ON INDIRECT TAXES which is available on this www.vatconcept.com. There you will find complete procedure about computation of tax in works contract cases. You can also visit www.taxtalkindia.com. There you can compute WCT in your case.



Query No. 372Querist name    Mr. N.K. AroraQuerist city:  Noida
Mr.  Narender, asked us:
        If the contract is awarded on labour rate and material is provided by the client at site of work.what will be the position of WCT?
We responded as follows:
Dear Narender,
        WCT is payable on sale of material only. If contract amount does not include value of material incorporated in the works then contractor is not liable for payment of VAT (WCT). Also it will not be a case of works contract involving transfer of property in goods.



Query No. 373Querist name    Mr. anil mehrotraQuerist city:  kanpur
Mr.  anil, asked us:
        why the assessing officers not issuing Registration Certificates suo moto to those dealers who filed Form VII on or after 1.1.2008 and were registered dealers under the erstwhile Act? Why the dealer is required selectively to go to officer, fleece the entire staff and then gets the Regn Certificate? WHY THIS COSTLY ENALTY? Photo ientification/verification can be made the Passport Offficer does. Pl direct all the officers to issue and cause delivered Form 11 to the dealers who continued enjoying the status of a regd dealer. This only helps the reenforcement of faith in transparent system.
We responded as follows:
Dear anil,
        Dear Sir, you may send your complaint to Commissioner, Commercial Taxes, Uttar Pradesh, Lucknow. This Web Site is not official web site.



Query No. 374Querist name    Mr. DEVARAJU.E.G.Querist city:  KANPUR
Mr.  DEVARAJU, asked us:
        Resp Sir, I am require for list of the goods as which goods entry tax applied, i mean Vat forms require for which goods in up? kindly send the list for above mentioned e-mail id immediately.
We responded as follows:
Dear DEVARAJU,
        Please visit www.taxtalkindia.com. On this site, you will find a link U.P. Entry Tax Rates. The link provides a list of various goods on which Entry Tax is leviable.



Query No. 375      Querist city:  lucknow
   Querist asked us:
        What are being rates applied in work contract act? Procedure for deduction of work contract at the time of payment to contractor?
We responded as follows:
Dear Madame / sir,
        In U. P., under VAT Act, there are no separate rates of tax for works contracts. A dealer has to pay tax on sale of various goods involved in the execution of the works contract. For procedure for making deduction at source at the time of making payment, please go through Section 34 of the U. P. VAT Act, 2008. You can also find it at www.taxtalkindia.com.



Query No. 376Querist name    Mr. gyanchandQuerist city:  Gr.Noida
Mr.  gyanchand, asked us:
        Dear Mam/Sir, pls confirme that what is minimume value for fill form-38. of any purchase goods from delhi state? enter in u.p.state. where is the start of value for fill form 38?
We responded as follows:
Dear gyanchand,
        If value of goods exceeds Rs. Five thousand, it is mandatory to use Form-38. If sale and purchase of any goods is exempt from levy of VAT & ENTRY TAX in U. P., Form-38 is not to be used.



Query No. 377Querist name    Mr. VIVEK BARANWALQuerist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir One of our vendor of Karnataka has lost form 38. But we have received material in our premises What procedure we have to follow to intimate sales tax department. Party is ready to pay for amount of any penalty interest if applicable Please Advise Vivek
We responded as follows:
Dear VIVEK,
        You have to give intimation to your assessing authority. Your assessing authority may ask you to furnish Indemnity Bond and publication of news in newspaper in respect of lost Form.



Query No. 378Querist name    Mr. VIVEK BARANWALQuerist city:  SULTANPUR
Mr.  VIVEK, asked us:
        Sir One of our local vendor of UP (same municipality) has supplied steel material without form 21. We have received material in our premises What would be course of action for us? whether we have to request to party to submit form 21 in back date Please Advise Vivek
We responded as follows:
Dear VIVEK,
        When goods have already been received, there is no need of transport memo. Transport memo is supposed to accompany goods during transportation.



Query No. 379Querist name    Miss sandeepQuerist city:  ghaziabad
Miss  sandeep, asked us:
        sir what is the sale procedure of non-vat goods. can we charge sapratel on non-vat goods or not plese tell me
We responded as follows:
Dear sandeep,
        Your query is not clear. Non Vat Goods are the goods on the sale of which tax is levied only at one point of sale. Such point may be sale by manufacturer or sale by the first dealer who makes first sale of such goods after they are brought or received inside the State from outside the State. In case of purchase from persons other than registered dealers, purchaser is required to pay tax. A dealer who is liable to pay tax to the Government may realise amount of tax from their purchasers.



Query No. 380      Querist city:  Bulandshahar
   Querist asked us:
        is medical practioner is liable for registration in VAT for sale of medicines to our patients. please clerify this query? if yes please give details where i read this matter in this matter
We responded as follows:
Dear Madame / sir,
        Sorry ! Reply to your query can be given only after knowing complete procedure and terms and conditions of the service. If whole conduct falls under service then medical practitioner is not required for obtaining VAT Registration.



Query No. 381Querist name    Shri Kunwar Behari LalQuerist city:  Delhi
Shri  Kunwar, asked us:
        We are constructing a building in UP and have registered under Works Contract with UPTT. The contract is comprehensive and includes elecrification, tiles, paining etc. Since our import purchases would be more than 5% of contract amount, we are charging 6% WCT. As per our contract, taxes will be charged extra and accordingly we charge in our running bills. Our employer insist on deducting WCT @ 4% on every bill. Is he right? Shall we deposit balance 2% with the department and when? Are we entiltled to buy against Form C.
We responded as follows:
Dear Kunwar,
        Condition of 5% of import purchases is applicable where contractor has opted composition scheme. Contractor opting composition is not entitled for charging tax. I will advise that you should consult some expert in the field with all facts of your case.



Query No. 382      Querist city:  ghaziabad
   Querist asked us:
        we are registed my firm dated. 2/6/2011 in upvat. then my work place wissited by cto dt. 12/6/11 and filed your record my stock Rs. 50,000/- So, my Qut. is my purchaes of Rs. 50,000/- is 31 may 2011 pzl suggest me what i can do. becose my retun due date is 20/07/11, for the perid of jun but my purchaes is may
We responded as follows:
Dear Madame / sir,
        Your query is not clear. Liability of submission of return depends upon the date on which you have become liable for payment of tax for the first time. From which date you are liable for payment of tax can be known from provisions given in section 3 of the U.P. VAT Act, 2008. The U.P. VAT Act, 2008 provisions are available on www.taxtalkindia.com and other sites. You are advised to go through them.



Query No. 383      Querist city:  Noida
   Querist asked us:
        Sir, Our client has awarded us a contract for construction of building in Noida (U.P). Since we have registered our firm under work contract - compounding scheme. We have been filing our monthly returns on the compounding basis. After few months the department rejected our application for compounding and instructed us to pay tax on normal basis. The reason the had given is that the client is not registered in UP Sales Tax and it is mandatory for client to have the TIN No. Please give us your valuable comments on the above. Also let us know what will be the tax liability in both cases if we receive a contract amount of Rs. 1 Crore from the client
We responded as follows:
Dear Madame / sir,
        Application for opting compounding scheme requires Registration No. or the details of the registration application submitted in the office. I think neither you have obtained Registration nor you have applied for grant of registration certificate. In these circumstances benefit of compounding scheme is not available. Regarding your second query about liability of tax, I would like to say that in your case liability of tax will depend upon the goods incorporated in the works contract and the amount receivable. Turnover of sale of goods will be computed and thereafter, tax will be computed at normal VAT rates. You are advised to go through the Artticles available on www.vatconcept.com (this Site).



Query No. 384Querist name    Mr. Pradeep KapoorQuerist city:  Ghaziabad
Mr.  Pradeep, asked us:
        Dear Sir, Recently I had joined in the company which is in the field of Real Estate i.e. contruction of Mall & shopping Complex, Can you give me the complete case study that how the work contract will be applicable and how the WCT will be calculated ?
We responded as follows:
Dear Pradeep,
        You are advised to go through the Articles available on www.vatconcept.com under link TUTORIALS ON INDIRECT TAXES. You should also go through section 2 (Definitions of sale, sale price and works contract), section 3, section 34 of the U.P. VAT Act, 2008 and Rule 9 of the U.P. VAT Rules, 2008. This material is available on www.taxtalkindia.com.



Query No. 385Querist name    Mrs. akshay kumarQuerist city:  ghaziabad
Mrs.  akshay, asked us:
        Dear Sir , I want to know how to fill up form 24 c of u.p vat and purpose of Annexure C-3 part (b) . Sir kindly provide me a example format of form 24-c regard AKSHAY SHARMA
We responded as follows:
Dear akshay,
        Here I cannot explain how to fill in Form UPVAT-XXIV-C because it is a big query. Form XXIV-C is return form for contractors who execute works contracts. Annexure-C Part B is for the purpose of computing amount of reverse input tax credit where a dealer has not been entitled for claiming ITC in respect of any goods but has already claimed. For format of form XXIV, kindly visit www.taxtalkindia.com NOTIFICATION Page. Select U.P. VAT Act, 1948 and then Notification dated 04-02-2010.



Query No. 386      Querist city:  Haringhata
   Querist asked us:
        concept of E1 E2 & 6(2) sale
We responded as follows:
Dear Madame / sir,
        Any inter-state sale, effected by transfer of documents of title to the goods during movement of such goods from one State to another State, enjoys exemption from levy of central sales tax where such sale is- (i) any inter-state sale subsequent to first inter-state sale; (ii) effected by a registered dealer to a registered dealer; and (iii) selling dealer furnishes Form E1 or Form E2 obtained from its selling dealer and Form C obtained from its purchasing dealer. Form E1 is applicable in case of first subsequent inter-state sale effected by transfer of documents of title to the goods and Form E2 is applicable in cases of all other subsequent inter-state sales effected by transfer of documents of title to the goods.



Query No. 387      Querist city:  Haringhata
   Querist asked us:
         I want to know the calculation reverse credit of ITC for stock transfer outside state under West Bengal Vat rules.
We responded as follows:
Dear Madame / sir,
        Sorry ! we do not have updated version of the West Bengal VAT Rules.



Query No. 388Querist name    Mr. AnilMehrotraQuerist city:  Kanpur
Mr.  ANIL, asked us:
        Whether the AO may invoke provisions of Sec 25(1)(iii) on the mere plea that ITC has been carried forward from previous tax period?
We responded as follows:
Dear ANIL,
        Yes, if ITC has wrongly been carried forward from previous tax period return. Clause (ii) of sub-section (1) of section 25 is the appropriate clause but wrong quoting of clause is immaterial if reasons exist for making provisional assessment.



Query No. 389Querist name    Mr. AnilMehrotraQuerist city:  Kanpur
Mr.  ANIL, asked us:
        Whether the AO may invoke provisions of Sec 25(1)(iii) on the mere plea that ITC has been carried forward from previous tax period?
We responded as follows:
Dear ANIL,
        Yes, if ITC has wrongly been carried forward from previous tax period return. Clause (ii) of sub-section (1) of section 25 is the appropriate clause but wrong quoting of clause is immaterial if reasons exist for making provisional assessment.



Query No. 390Querist name    Mr. B.SENTHATTIKALAIQuerist city:  CHENNAI
Mr.  SENTHATTIKALAI, asked us:
        We are main contractor & sales tax Return adopted Composite Rate @ 2% ( Form L).So Contractee deduct 2% WCT (Vat) from bill claimed value. If the same work give to sub contractor, May deduct the Vat @ 2% from subcontract bill or not.Already Vat deducted by contractee from our bill.
We responded as follows:
Dear SENTHATTIKALAI,
        Where main contractor awards a sub-contract to a sub-contractor, it is mandatory for the main contractor to make TDS (WCT) from payments made to sub-contractor. The main contractor is not absolved of its liability for making TDS even if contractee has made TDS from payments made to main contractor. But where the main contractor has made deduction from sub-contractor on any amount, he may ask the contractee for not making TDS on such amount.



Query No. 391      Querist city:  mumbai
   Querist asked us:
        I Want To Know Abut That How Can I Apply For New Registration of Vat Number and What Is Document Required For the Whole Process.
We responded as follows:
Dear Madame / sir,
        Under U.P. VAT, Form VII is the appropriate Form for obtaining Registration. You can download this Form either from Departmental Web Site http://comtax.up.nic.in or from www.taxtalkindia.com. Please go through this Form and instructions. This will tell you what documents are required. Registration fee is rupees hundred. The fee is required to be deposited in nationalized bank accepting VAT payments alongwith Treasury Challan in Form I.



Query No. 392Querist name    Mr. manish guptaQuerist city:  raebareli
Mr.  manish, asked us:
        that the party purchased foodgrains & vat claimed in itc but after some time he has to know that the selling party has not deposited the vat tax the a.o passed the order and reverse the itc .the a.o issued a penalty notice u/s 54(1) 19 AND imposed penalty 5 times,wheather it should be void.
We responded as follows:
Dear manish,
        Unless it is held that purchasing dealer and selling dealers have been in collusion and Tax invoice has been received without purchase of goods from the shown selling dealer or tax invoice is fake, benefit of ITC cannot be reversed. But any order passed is not void unless it is quashed by the competent authority.



Query No. 393Querist name    Mr. manish guptaQuerist city:  raebareli
Mr.  manish, asked us:
        that the party purchased foodgrains & vat claimed in itc but after some time he has to know that the selling party has not deposited the vat tax the a.o passed the order and reverse the itc .the a.o issued a penalty notice u/s 54(1) 19 AND imposed penalty 5 times,wheather it should be void.
We responded as follows:
Dear manish,
        Unless it is held that purchasing dealer and selling dealers have been in collusion and Tax invoice has been received without purchase of goods from the shown selling dealer or tax invoice is fake, benefit of ITC cannot be reversed. But any order passed is not void unless it is quashed by the competent authority.



Query No. 394Querist name    Mr. MANAN GUPTAQuerist city:  NOIDA
Mr.  MANAN, asked us:
        Sir, i have to replace a particular item free of cost as per agreement. Can i purchase this item against form-C? Item is covered in my registration certificate. I have doubt in making purchase against form-C as it is not meant for re-sale but free of cost supply.
We responded as follows:
Dear MANAN,
        It is a debatable question. If you purchase two items for re-sale and sell only one item then in respect of one item you will not be complying condition of use of Form C.



Query No. 395      Querist city:  gorakhpur
   Querist asked us:
        Rate of tax under up vat in between 1/01/2008 to 31/03/2008 (a) sand (b) iron (sariya) (c)stone (gitti)
We responded as follows:
Dear Madame / sir,
        Kindly visit www.taxtalkindia.com Commodity Code & Tax Rate Finder link.



Query No. 396Querist name    Mr. AMANQuerist city:  PATIALA
Mr.  AMAN, asked us:
        whether i can use c form to import plant & machinery for use to manufacture tax free goods
We responded as follows:
Dear AMAN,
        Yes, but you should be registered for such goods under the Central Sales Tax Act, 1956 in the category "For use in manufacture or processing of goods for sale.



Query No. 397      Querist city:  Delhi
   Querist asked us:
        Under Entry Tax Fiver Sheet is liable to entry tax?
We responded as follows:
Dear Madame / sir,
        Sorry ! We do not know about fiver sheet. Would you please explain what is it? Is it Fiber Sheet?



Query No. 398      Querist city:  Sitapur
   Querist asked us:
        How to file Vat return of Contractors form 24C in U.p , what details are required in return filling.
We responded as follows:
Dear Madame / sir,
        Form XXIV itself tells you what details are required? It requires details of purchases, turnover of sales of goods, amount of labour and other services, total amount receivable for works executed during the tax period, amount of ITC claim, Amount of TDS (WCT) and details of payment of tax.



Query No. 399Querist name    Mr. MANISH Querist city:  DELHI
Mr.  AGRAWAL, asked us:
        If I have works contract in UP, billing directly from my Delhi Office, is UP WCT deductible from my payment by party.
We responded as follows:
Dear AGRAWAL,
        Yes, Unless you obtain no deduction certificate from the Department, contractee is bound to make TDS.