Section 6, tnvat act

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This query is : Resolved

Praveen Kumar K (Querist)

14 August 2013 1. A TNVAT registered dealer executes Works Contract and Normal Sales also.
2. The dealer purchases certain goods from Outside State.
3. Can the dealer opt for Section 6 Valuation
If
(a) The dealer uses those goods purchased from outside State exclusively for Normal Sales.
(b) The dealer uses those goods commonly for both.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

15 August 2013 A dealer opting for valuation u/s 6 can do normal sales also. The sold goods can be local as well as interstate purchased.Here for the purpose of Sec 6 the receipts,purchases,expenses and other accounts,with respect to such works contract has to be kept seperate.But problem arises in filing returns. Composition(u/s 6)and other receipts have to to be reported seperately....mjk

Message likes : 1 times

Praveen Kumar K

Praveen Kumar K (Querist)

16 August 2013 Dear Sir,

I was given to understand that once a dealer opts for Section 6 valuation for a Financial Year, he can never opt for Section 5 valuation in the same Financial year, irrespective of the fact that he does trading also. Thus to summarise if a dealer is also doing trading he has to opt for Section 5 valuation, he cannot opt Section 5 & Section 6 partly.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

16 August 2013 Yes, it is better to be on Sec 5 valuation only in order to avoid any complications.....mjk

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