GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
The Andhra Pradesh Value Added Tax Rules 2005 Amendment
Notification – Issued.
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REVENUE (CT-II) DEPARTMENT
G.O.Ms. No.1116 Dated: 20th August, 2007
Read the following:-
From the Commissioner of Commercial Taxes, Andhra Pradesh,
Hyderabad , Lr.No.AIII(1)/45/2007, Dt.24-05-2007.
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ORDER: -
The appended notification shall be published in the next extraordinary issue of the Andhra Pradesh Gazette.
2) The Commissioner of Printing, Stationery and Stores Purchase (Publication Wing), Andhra Pradesh, Hyderabad is requested to supply 100 (one hundred) copies of the notification to Government and 300 (three hundred) copies to the Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
S.V.PRASAD
PRINCIPAL SECRETARY TO GOVERNMENT
TO
The Commissioner of Printing, Stationery and Stores Purchase (Publication
Wing), A.P., Hyderabad for publication of the Notification (2 copies)
The Commissioner of Commercial Taxes, A.P., Hyderabad .
The Secretary, Sales Tax Appellate Tribunal, Hyderabad .
The State Representative before the Sales Tax Appellate Tribunal, Hyderabad.
The Director General, Administration (Vig. & Enft.) Department, B.R.K.Buildings, Hyderabad.
Copy to:
The Accountant General, Andhra Pradesh, Hyderabad .
The Law (E) Department/Law (F) Department
The P.S. to Special Secretary to Chief Minister.
The P.S. to Minister for Commercial Taxes.
The P.S. to Principal Secretary to Govt., Rev. Dept.,
Sf/Sc.
//FORWARDED BY ORDER//
SECTION OFFICER
(PTO for Notification)
NOTIFICATION
In exercise of the powers conferred under sub section (1) of Section 78 of the Andhra Pradesh Value Added Tax Act, 2005 (Act No.5 of 2005) the Governor of Andhra Pradesh hereby makes the following amendments to Andhra Pradesh Value Added Tax Rules, 2005 issued in G.O.Ms.No.394, Revenue (CT-II) Department, dated 31.3.05 and published in the Rules supplementary to part-I Extra ordinary issue of A. P. Gazette No.29 dated 20-4-2005 as subsequently amended.
The amendments hereby made shall be deemed to have come into force on the Ist September, 2006.
AMENDMENTS
In the said rules:-
(1) In Rule 16 in sub- rule (2) on clauses (c) (d) (e) the following clauses shall be substituted,
"(c) all amounts, forming part of the sale price on account of any incentives, sanctioned or ordered specifically or in general by either the Government of Andhra Pradesh or the Government of India with a view to extend any specific benefit to the agricultural farmers, subject to the guidelines issued by the Commissioner thereof".
(d) amount of additional trade margin of 10% charged by the Andhra Pradesh Beverages Corporation Limited to pay as special privilege fee on the sale of IMFL in the State;
(e) Retailers margin at the retail out lets run by Andhra Pradesh Beverages Corporation Limited the special margin collected by the Andhra Pradesh Beverages Corporation Limited and credited to the Government on account of rounding up of the Maximum Retail Price to nearest rupee for each bottle."
(2) In Rule 17,-
(a) in sub-rule (1),-
(i) for clause (c) the following clause shall be substituted, namely,-
"(c). Where a VAT dealer mentioned in clause (a) awards any part of the contract to a registered sub-contractor, no tax shall be payable on the consideration paid for the sub-contract.",
(ii) in clause (e) after item (VII), the following shall be added namely;-
(VIII) amounts paid to a sub contractor as consideration for the execution of works contract whether wholly or partly;
Provided that the contractor VAT dealer shall arrive at the value of goods at the time of incorporation, tax rate wise, from out of the taxable turnover arrived at as above, on prorata basis taking the ratio of value of goods liable to tax at different rates against the total value of purchases relating to such contract.
Provided further that, subject to the filing of returns and payment of tax as per clause (d), the VAT dealer shall pay the balance amount of tax arrived at by following this clause at the time of finalization of accounts relating to the particular work. Such additional taxable turnover and taxes payable shall be declared in the return for the month in which accounts are finalized."
(iii) for clause (f), the following shall be substituted, namely:-
"(f) Where tax has been deducted at source, the contractor VAT dealer shall obtain Form 501A with unique form ID from the Assist Commissioner / Commercial Tax Officer concerned and supply the same to the contractee. The contractee shall complete the Form 501A with required information and supply the same to the contractor within fifteen days after the end of the month in which the deduction is made. The contractor VAT dealer shall submit the Form 501A along with the tax return."
(iv) after clause (g) the following shall be added, namely-
"(h) Where any tax is deducted under sub section (3) of section 22 in respect of any dealer executing works contracts and work in whole or any part of such work is awarded to a registered sub contractor by him, the tax proportionate to the amounts paid as consideration to the sub-contractor out of the tax deducted by the contractee shall be transferred to the sub-contractor by issuing Form 501B to the registered subcontractor. The sub contractor shall file Form 501B to the authority prescribed along with the return in Form VAT 200."
(b) for sub rule (2) the following shall be substituted, namely :-
(2) Treatment of works contracts executed for State Government or Local Authority under composition:
(a) Where a dealer executes any works contract exceeding a value of Rs. 5,00,000 (Rupees five lakhs only) awarded either by a State Government Department or Local Authority, he must register himself as a VAT dealer:
(b) The VAT dealer opting to pay tax by way of composition under clause (b) of sub-section (7) of Section 4 shall apply for composition in Form VAT 250, before commencement of execution, for each work or works or category of works he intends to do so and shall be liable to pay tax at the rate of four percent (4%) on the total value of the contract. A consolidated Form VAT 250 can be filed by the contractor for multiple works contracts of similar nature.
(c) Where tax deduction at source is made, the contractor VAT dealer shall obtain Form 501 with unique form ID from the Assistant Commissioner / Commercial Tax Officer concerned and supply the same to the contractree Government Department or Local Authority. The contractee Government Department or Local Authority shall complete Form 501 supplied by the contractor indicating the TIN of the contractor,; the amount of tax deducted at source and details of the related contract and supply the same to the contractor within fifteen days from the end of the month in which the deduction of tax at source is made.
(d) The contractor VAT dealer shall declare on the VAT Form 200 the amount received or receivable and the tax due on that amount;
(e) The contractor shall submit Form 501 certified by the contractee together with Form VAT 200 for the month in which payments was received or receivable whichever is earlier. In case the contractor fails to submit the Form 501 along with the return, he shall pay the tax due on the return;
(f) Where the contractee Government Department or local authority fails to remit such tax deducted at source within fifteen days from the date of each payment made to the contractor the authority concerned shall be liable to pay interest for the delayed payment;
(g) In the case of the execution of any works contract for the State Government or local authority where the dealer has opted to pay tax by way of composition under clause (b) of sub-section (7) of Section 4, such VAT dealer shall not be eligible to claim input tax credit;
(h) Where a VAT dealer mentioned in clause (a) awards any part of the contract to a registered sub contractor, no tax shall be payable on the turnover relating to amounts paid to the sub-contractor as consideration for the execution of works contract whether wholly or partly;
(i) Where any tax is deducted under subsection (3) of section 22 in respect of any dealer executing works contracts and work in whole or any part of such work is awarded to a registered sub contractor by him the tax proportionate to the amounts paid as consideration to the registered sub-contractor out of the tax deducted by the contractee shall be transferred to the registered sub-contractor by issuing Form 501B to the registered sub-contractor The registered sub-contractor shall file Form 501B to the authority prescribed along with the return in Form VAT 200."
(c ) in sub rule (3)
(j) to clause (b), the following words shall be added at the end, namely ;-
"Whichever is earlier"
(ii) to clause (c) the following proviso shall be added, namely :-
"Provided that a consolidated Form VAT 250 can be filed by the contractor who undertakes multiple works contracts of similar nature."
(iii) for clause (e) the following shall be substituted, namely :-
"(e) The contractor VAT dealer shall obtain Form 501 A with unique form ID from the Assistant Commissioner / Commercial Tax Officer concerned and supply the same to the contractee. The contractee shall complete Form 501 A supplied by the contractor indicating the TIN of the contractor, the amount of tax deducted at source and details of the related contract;"
(iv) for clause (g), the following shall be substituted, namely :-
"(g) Where a VAT dealer mentioned in clause (a) awards any part of the contract to a registered sub-contractor, no tax shall be payable on the turnover relating to amounts paid to the sub-contractor as consideration;"
(v) Clause (h) shall be omitted,
(vi) for clause (i) the following clauses shall be substituted, namely:-
"(i) Where the contractee fails to remit such tax deducted at source within fifteen days of the date of payment to the contactor the person authorized to make payment and to deduct tax shall be liable to pay interest for the delayed payment;
"(j) Where any tax is deducted under sub-section (3) of section 22 in respect of any dealer executing works contracts and work in whole or any part of such work in whole or any part of such work is awarded to a registered sub-contractor by him, the tax proportionate to the amounts paid as consideration to the registered subcontractor out of the tax deducted by the contractee shall be transferred to the registered subcontractor by issuing Form 501B to the registered subcontractor. The registered sub- contractor shall file Form 501B to the authority prescribed along with the return in Form Vat 200"
(d) in sub-rule (5) clause (c) shall be omitted,
(3) In form 501 appended to the Rules for the words 'collected' the works 'deducted', for the expression "4% on the total value of the contract" expression "2.8% OR 1.4% (as applicable to the contract) of the amount paid to the contractor" and for in column 09 following expression 09 "Amount of VAT deducted @2.8% OR 1.4% of Col.8 above "shall respectively be substituted.
(4) In Form 501A appended to the Rules, for the expression "at the rate of 2% on the total value of the contract" the expression "at the rate of 2.8% OR 1.4% as applicable, of the amount paid to the contractor" shall be substituted.
S.V.PRASAD
PRINCIPAL SECRETARY TO GOVERNMENT
//TRUE COPY//
SECTION OFFICER
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