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AP VAT Notification GO 35 Increase of VAT 12.5% to 14.5%

K Bala Kishan (Working) (631 Points)

15 January 2010

Dear all,

Please note that the rate of tax on goods falling under Schedule V of

APVAT Act 2005 is increased from 12.5% to 14.5% w.e.f 15-01-2010.

Please also find attached G.O to this effect. But the rate of tax on hotels having Three Star and above rating and having turnover more than 1.5 Crore is construed as not increased as the rate of tax under

Section 4(9)(b) and (d) is not changed.

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22 Replies

Suresh (Accounts Executive) (25 Points)
Replied 15 January 2010

Thank you Mr. Bala Kishan

Regards

Suresh

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MANISH PANDEY (DEPUTY MANAGER) (49 Points)
Replied 15 January 2010

Thank Mr. Bala,

Can u solve my query related to WCT on SEZ.

Is WCT is applicable for WCT performed for SEZ unit.

Regards,

Manish Pandey

CA Akshay Kumar Mishra (Chartered Accountant ) (1784 Points)
Replied 15 January 2010

thanx SIR JI

K Bala Kishan (Working) (631 Points)
Replied 15 January 2010

Dear Manish Pandey,

The below is for your clarification.

It should be noted that the tax deducted at source cannot be equated with tax liability. Section 22 (3) does not distinguish between works, done for different categories of contractees and different destinations of supply, when it comes to the tax deduction at source. No exemptions from TDS are provided under the APVAT Act. Therefore, exemption from TDS cannot be granted even in cases where the deemed sales i.e., supplies of goods by way execution of works contracts are exempted. Hence the Contractees, who are under the statutory obligation to deduct tax at source in terms of Sec. 22 (3) of the APVAT Act, shall collect tax at source at the appropriate rates. However, in case the tax liability of the works contractors, from whom the tax is deducted at source, is less than the amount of tax deducted at source, the differential amount will be refunded or adjusted against the present or future liability.

Further clarifications, please let me know....

MANISH PANDEY (DEPUTY MANAGER) (49 Points)
Replied 15 January 2010

Dear Mr. Bala,

Thanks for your comment on WCT-TDS .

I still have one question that whether WCT-VAT is applicable transfer of property to SEZ.

Regards,

Manish Pandey

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K Bala Kishan (Working) (631 Points)
Replied 20 January 2010

Dear Manish,

Please read the file which i had uploaded in Brief Understanding of Works Contract Tax and VAT

Balu

MANISH PANDEY (DEPUTY MANAGER) (49 Points)
Replied 21 January 2010

When you have posted this?

K Bala Kishan (Working) (631 Points)
Replied 21 January 2010

/share_files/files_display.asp?files_id=22116

above is the link for that file.....

MANISH PANDEY (DEPUTY MANAGER) (49 Points)
Replied 25 January 2010

Thanks Mr.Bala.

One more question :

What is advance ruling under AP-VAT ?

Manish

K Bala Kishan (Working) (631 Points)
Replied 25 January 2010

It is clearly explained in APVAT Act 2005 about the Advance Ruling and its application. The below is given for your quick understanding:

GENERAL PROVISIONS
67.

(1) The Commissioner may constitute a State level ‘Authority for Clarification and Advance Rulings’ comprising of 3 officers not below the rank of Joint Commissioner to clarify, in the manner prescribed any aspect of the implementation of the Act.

(2) No application shall be entertained where the question raised in the application :-
  (i) is already pending before any officer or authority of the Department or Appellate Tribunal or any Court;
  (ii) relates to a transaction or issue which is designed apparently for the avoidance of tax:
   Provided that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard and where the application is rejected, reasons for such rejections shall be recorded in the order.

(3) No officer or any other authority of the Department shall proceed to decide any issue in respect of which an application has been made by an applicant under this Section and is pending.

(4) The order of the authority shall be binding:-
  (i) on the applicant who had sought clarification;
  (ii) in respect of the goods or transaction in relation to which a clarification was sought; and
  (iii) on all the officers other than the Commissioner:
   Provided the dealer does not file an appeal before Sales Tax Appellate Tribunal within 30 days of the Ruling in the manner prescribed.

(5) The authority for clarifications shall have power to review, amend or revoke its rulings at any time for good and sufficient cause by giving an opportunity to the affected parties.
An order giving effect to such review or amendment or revocation shall not be subject to the period of limitation.

(6) The Commissioner may also refer any matter for opinion of the Authority for clarification without prejudice to his authority.

Regards,

Bala Kishan

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MANISH PANDEY (DEPUTY MANAGER) (49 Points)
Replied 03 February 2010

Thank You Mr.Bala,

One query I have as below :

Suppose A company which is in SEZ unit has given an order for supply of goods to the dealer who is in DTA and registered under AP VAT.The dealer is forwarded the order to another dealer who also in AP and he supply goods direct to SEZ unit as per instruction received from first dealer .He raises inovice by mentioning consignee to SEZ unit and bill to first dealer.

In above case whether dealer will charge VAT or not?

Thanks

Manish Pandey

K Bala Kishan (Working) (631 Points)
Replied 04 February 2010

Hi Manish,

For the above query you required, VAT is need not be charged and it is a Deemed Export Sale for which Form H to be issued to the party.

Regards,

Bala Kishan

MANISH PANDEY (DEPUTY MANAGER) (49 Points)
Replied 04 February 2010

Thanks for your view .

In case of CST purchase, If an OEM vendor direclty send goods to SEZ unit after receiving order from a dealer. The original order is place by SEZ unit to dealer.

1. Can OEM vendor send goods to SEZ unit without charging CST , even if order palced by Dealer who is DTA area.

2. Can SEZ unit issue Form-I to OEM vendor?

3. will it be any Form-C/E-1 transaction performed in above case?

Waiting for your view .

Regards,

Manish Pandey