Professional Documents
Culture Documents
1. What is VAT?
VAT is a multi point levy where the tax paid on local purchases from the
registered dealer can be set off against the tax payable on the sale of
goods, other than special goods.
• 1%
• 4% on goods eligible for input tax credit.
• 12.5% on goods eligible for input tax credit.
• ZERO rate
• Special rate of tax on certain goods (which are kept out of VAT) – No
input tax credit is allowable on these goods – example: Petrol
REGISTRATION
REGISTRATION CERTIFICATE:-
• Application in Form A
• Copy of Pan Card issued by Income tax Dept.
• Two passport size photograph of applicant(s)
• Self attested – sufficiently stamped envelop
• Address proof
• Lease agreement of the premises (if taken for lease)
• Partnership deed (in case of partnership firm)
• Details of Partners in Form B (in case of partnership firm)
• Memorandum and Articles of Association ( for Companies registered
under the Indian Companies Act.
• Registration fee of Rs. 500/- for principal place of business
• An additional fee of Rs. 50/- for each additional place of business
(godowns, depots)
• No Security deposit.
• It is permanent till it is cancelled by the dealer on stoppage of
business OR cancelled by the Department on other grounds
• There is no renewal of registration
REGISTERING AUTHORITY:-
LEVY OF TAXES:
• On sale of goods
• On right to use any goods
• On transfer of goods involved in a works contract
• On food and drinks
• On bullion and jewellery
• On purchase of goods (in certain cases as purchase tax)
EXEMPTED SALE:-
• Sale on which no tax is levied but the tax paid on local purchases is
refunded to dealer who effected such sale.
• Export sale (by self or to others within the state)
• Sale in the course of Export under CST Act, 1956 (i.e. sale to
exporters in other states)
• Sale to International Organisations
• Sale to customers in Special Economic Zones
• Rule 6 of The Tamil Nadu Valud Added Tax Rules, 2007 prescribes
the various documents to be maintained by every dealer
FILING OF RETURNS:-
• Self – assessment.
• The Department accepts the returns filed
• The dealers need not appear before assessing authority or produce
the accounts for annual assessment
• Assessment Order by the authority based on the returns filed.
• Detailed scrutiny by the Assessing Authority at random ( 20% of the
total assessment will be selected for scrutiny)
• The details of such selection for scrutiny shall be placed on notice
board in the assessment circle and in the department website. The
accounts which are selected for detailed check shall be called and
checked by the assessing authority. After check, the authority either
accept and confirm the self assessment or revise the assessment.
• The tax paid on the goods purchased can be adjusted against the tax
payable on the goods sold subject to conditions stipulated in the Act
/ Rules.
• OUT PUT TAX ‘ “ Tax collected on sale of goods from the buyer. The
output tax is calculated by applying the rate of tax on taxable
turnover of the goods.
• Input tax credit includes the purchase tax paid under Section 12 of
the VAT Act.
• The input tax credit can be adjusted against the tax payable by the
purchasing dealer on his sales.
• The input tax can be adjusted against the tax payable by the
purchasing dealer on his sales.
• The dealers are not eligible for input tax credit on all inputs. There
are certain restrictions and conditions on eligibility of input tax
credit. They are given in details under TNVAT Act., 2006.
• Not eligible if capital goods are used exclusively for the manufacture
of exempted goods.
• Dealers, who makes zero rate clearance for export, can retain the
input tax credit on purchases and adjust the same against his out
put tax payable on local clearances OR he shall be entitled to
claim refund of input tax credit on the purchases.
• Time limit is 180 days from the date of making zero rate sale –
otherwise the credit will lapse.
IMPORTANT FORMS UNDER VAT:-
FORMS TITLE
D Certificate of Registration
JJ Delivery note