Vous êtes sur la page 1sur 7

FAQs on VAT

1. Is a VAT dealer required to compute net tax payable in every invoice issued by him?
No, VAT shall be charged on each invoice at the rate applicable to the
commodity. The net tax payable by the dealer shall be computed by
deducting input tax credit from the output tax at the end of Tax pe
riod/Return period.
2. Is entry tax still applicable when VAT has been put in force in UT,
Chandigarh?
Presently yes.
3. Will there be surcharge on VAT like sales tax under PGST?
No, There will be no surcharge under VAT.
4.Whether inter-state sales tax is still applicable to Union territory
Chandigarh after introduction of VAT?
Yes. However CST may be phased out over a period of time.
5.Will input tax credit be available in respect of CST paid on purchase from outside the
UT on raw materials or other goods?
No.
6.Will input tax credit be limited to 4% if a VAT dealer makes inter-state sales?
No, VAT dealer who is making inter-state sales will be entitled to claim full
input tax credit of VAT paid in Union Territory Chandigarh.

7.What options a person has if input tax credit is more than output tax payable
in a tax period?
The difference, in such cases, may either be carried forward to the next
return period or claimed as refund at the option of the taxable person. In
case it cannot be utilized, refund will be allowed as per the provisions of
the VAT Act.

8.Will a separate application for refund be required to be made whenever input


tax credit is more than output tax?
Yes, separate application will be required in form VAT-29.

9. Which type of invoice shall be used by taxable person for conducting inters
state sales?
Retail invoice
10.Is purchase tax leviable under VAT?
Yes, Purchase tax will apply only in respect of following goods, listed in schedule ‘H’:
• Wheat
• Paddy
• Cotton
• Sugarcane
• Milk, when purchased for use in manufacturing of any goods other than taxable goods

11. Will input tax credit be available in respect of purchase tax so paid?
Yes.

12. Will a person exporting goods out of India be eligible to claim input tax credit?
An exporter of goods out of India would be eligible to claim refund of input tax in respect of
VAT paid in Union Territory Chandigarh on purchase of goods.

13. What are the mandatory particulars that need to be clearly mentioned on a VAT invoice?
Following are the mandatory particulars that need to be clearly mentioned on a VAT invoice.
1. Running serial number, printed by mechanical or electronic process;
2. Name, address and registration number of the seller;
3. Name, address and registration number of the purchaser;
4. Date of issue;
5. Quantity and full description of goods sold;
6. Unit price of the goods excluding VAT;
7. Rate and amount of VAT charged;
8. Total value of the goods;
9. Mode of transportation of the goods and details thereof;
10. Sr. No. of Form VAT-36 if the goods are sent outside UT, Chandigarh;
11. Signature of proprietor/partner/director/authorized agent; and
12. Above all the words 'VAT INVOICE' shall be prominently printed on the invoice.

14. How many copies of VAT invoices will need to be prepared?


VAT invoices shall be at least in triplicate as detailed below:
1. The first copy shall be issued to the purchaser prominently stating; 'ORIGINAL' and 'Input
Tax Credit is available to a taxable person against this copy only';
2. The second copy shall be issued to the transporter of goods prominently stating:
'Transporter's copy' and 'This copy does not entitle the holder to claim tax credit'; and
3. The last copy shall bear the words 'Seller's copy' and shall be retained by the seller.

Which mode can be employed for issue or preparation of an invoice?


An invoice can be:
• issued from duly bound pre-printed invoice or cash memo book; or
• prepared on computer or other electronic/mechanical device under intimation to
commissioner or D.O. about the type of system being followed.

. What are the mandatory particulars that need to be clearly mentioned on a Retail invoice?
Following are the mandatory details that need to be clearly mentioned on a Retail invoice:
• Running serial number of the invoice printed by mechanical or electronic process;
• Name, address and registration number of the selling person;
• Date of issue of the invoice;
• Quantity and full description of goods sold;
• Unit price of the goods;
• Total value of the goods; and
• Signature of proprietor/partner/director/authorized agent.
17.How many copies of retail invoices will need to be made?
Retail invoices shall be in duplicate. The first copy shall be issued to the purchaser and the
second copy shall be retained by the seller.

18.Will a VAT dealer be required to maintain computerized records?


Not necessarily, accounts can even be maintained manually.

19.Whether the VAT dealer has to keep one to one co-relation between purchases and sales to
avail input tax credit?
No, The VAT dealer is not required to establish a one to one co-relation to avail input tax
credit. The tax liability of a person shall be computed in respect of a return period by
deducting the input tax credit accruing during the period and carried forwarded to the return
period from the output tax liability for the return period. The balance shall be deposited in
the Government treasury in the prescribed manner.

20.Whether monthly returns are required to be filed under VAT?


No, every person registered under the VAT Act is required to file quarterly returns. Only the
person (dealer) with annual turnover above Rs one crore during the previous year shall be
required to pay tax on monthly basis and furnish the receipt thereof on monthly basis.

21. What is the system of framing assessments under VAT?


One of the key features of VAT Act is that there is a self-assessment system, wherein a dealer
will himself assess his own tax liability and file returns on self-assessment basis. There is
no provision for mandatory annual assessments by the Excise and Taxation Department under the
Act. This will reduce the dealer-department interface. The department, however, shall take up
cases in scrutiny for assessment wherein tax avoidance or evasion is detected or likely to be
detected.
22.Whether the Central Sales Tax Forms will continue under VAT system?
The Central Sales Tax Forms namely C, EI / EII, F, H etc. will continue under VAT. The rate of
CST without C forms will be 10% (for 4% goods) and 12.5% (for 12.5% goods) respectively.
23. Is Input Tax Credit allowed on account of tax paid on inter state purchases (goods
purchased from outside UT, Chandigarh)?

Ans ITC is not admissible for the amount of tax paid on Inter State
purchases.

24. Is Input Tax Credit (ITC) allowed to be adjusted against the liability
accruing on account of Inter State Sales under Central Sales Tax, Act?

Ans Yes, ITC is adjustable against the liability arising on account of inter
state sales under CST, Act. However, ITC on account of purchase tax in UT,
Chandigarh is admissible to the extent of CST chargeable when sold in the course
of inter state sales.
25. Is there any concession of rate of tax on sales to Government Departments
like in the pervious system on the strength of declaration in form D?
Ans Yes, the rate of tax on sales made to Government of India, State Governments
and PGI, Chandigarh against declaration in form D is 4 % under VAT except petrol
diesel and lubricants.
26. Is registration (TIN) mandatory for persons having turnover in excess of
50 lac?
Ans Yes.
27. Who is required to deposit tax on monthly basis?
Ans Any person whose gross turnover exceeds Re 1 crore during the previous year
shall have to pay tax on monthly basis. Returns shall be filed
quarterly.
28. What is the periodicity of filling returns?
Ans All the persons are required to submit quarterly returns in the form of VAT-
15 and VAT-17 by the taxable and registered persons respectively.
Annual statement in the form of VAT-20 and VAT-21 shall be furnished by 20th
Nov and 20th August by the taxable and registered persons respectively.
The annual statement shall be audited by CA when the turnover exceeds Re
50 lac.

29. How will be ITC on closing stock adjusted?


Ans The ITC admissible on closing stock on appointed day shall be allowed to
be adjusted in four equal quarterly installments after three months of
appointed day.
30. What are the guidelines for TOT dealers?
Ans The TOT is applicable only in respect of dealers whose turnover falls
within the range of Re 5 Lac to Re 50 Lac on their option.
TOT dealers are required to pay tax on their taxable turnover @ 1%.
TOT dealers are required to submit quarterly returns in the form of VAT-
17.
TOT dealer can not import or export goods from outside the union territory
Chandigarh.
No ITC is allowed to TOT dealers.