Up vat: amendment in rules

Sumit Grover (Chartered Accountant ) (3652 Points)

28 June 2014  

Vide N/N 684/XI-9(295)/114-2014, dated 27th June’14, Uttar Pradesh VAT Rules, 2008 have been amended. Glimpse has been produced hereinbelow in a simplified manner: 

  • Rule 2(definitions):
    • “Assessing authority” shall include Joint Commissioner/Additional Commissioner of the audit wing;
    • “Accountant” to include CS & CWA as well, apart from earlier definition of accountant which included only CA;
    • Henceforth, CS/CWA can also appear in front of departmental authorities.
  • Rule 20(submission of inventories):
    • Closing stock on last day of assessment year shall be required to be submitted alongwith annexures of consolidated details of tax & turnover, earlier it was required to be furnished alongwith annual return.
    • No change as such, since annual return has been replaced by consolidated annexures.
  • Rule 21/22(RITC):
    • While computing RITC(i.e. Reversal of Input Tax Credit), earlier, tax rate on respective commodities under UP VAT was taken. Now, CST rate(i.e. 2% presently) shall be taken into consideration.
  • Rule 32/32-A(Registration):
    • Earlier, bank passbook was also considered as address proof, now, such bank passbook should embody the photograph of the account holder being attested by the Branch Manager of the concerned bank.
  • Rule 42(Audit by specified authority):
    • Audit report was required to be submitted alongwith annual return, now the annual return has been replaced by annexures of consolidated details of turnover & tax.
  • Rule 45(Returns):
    • Annual return has been replaced by “annexures of consolidated details of turnover & tax” as follows:
      • Form LII-A for exclusively dealing in local purchase & sale;
      • Form LII-B for works contractors or dealing in right to use any goods;
      • Form LII for remaining dealers
    • And erstwhile forms(XXVI, XXVI-A,XXVI-B) don’t exist anymore.
  • Rule 50(Refund):
    • Refund may be credited to any branch covered under CBS, earlier refund was credited only in the local branch of the concerned bank.