14 August 2013
1. A TNVAT registered dealer executes Works Contract and Normal Sales also. 2. The dealer purchases certain goods from Outside State. 3. Can the dealer opt for Section 6 Valuation If (a) The dealer uses those goods purchased from outside State exclusively for Normal Sales. (b) The dealer uses those goods commonly for both.
15 August 2013
A dealer opting for valuation u/s 6 can do normal sales also. The sold goods can be local as well as interstate purchased.Here for the purpose of Sec 6 the receipts,purchases,expenses and other accounts,with respect to such works contract has to be kept seperate.But problem arises in filing returns. Composition(u/s 6)and other receipts have to to be reported seperately....mjk
I was given to understand that once a dealer opts for Section 6 valuation for a Financial Year, he can never opt for Section 5 valuation in the same Financial year, irrespective of the fact that he does trading also. Thus to summarise if a dealer is also doing trading he has to opt for Section 5 valuation, he cannot opt Section 5 & Section 6 partly.
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