Dear all, Please note that the rate of tax on goods falling under Schedule V of APVAT Act 2005 is increased from 12.5% to 14.5% w.e.f 15-01-2010. Please also find attached G.O to this effect. But the rate of tax on hotels having Three Star and above rating and having turnover more than 1.5 Crore is construed as not increased as the rate of tax under Section 4(9)(b) and (d) is not changed.
Thank you Mr. Bala Kishan
Regards
Suresh
Thank Mr. Bala,
Can u solve my query related to WCT on SEZ.
Is WCT is applicable for WCT performed for SEZ unit.
Regards,
Manish Pandey
thanx SIR JI
Dear Manish Pandey,
The below is for your clarification.
It should be noted that the tax deducted at source cannot be equated with tax liability. Section 22 (3) does not distinguish between works, done for different categories of contractees and different destinations of supply, when it comes to the tax deduction at source. No exemptions from TDS are provided under the APVAT Act. Therefore, exemption from TDS cannot be granted even in cases where the deemed sales i.e., supplies of goods by way execution of works contracts are exempted. Hence the Contractees, who are under the statutory obligation to deduct tax at source in terms of Sec. 22 (3) of the APVAT Act, shall collect tax at source at the appropriate rates. However, in case the tax liability of the works contractors, from whom the tax is deducted at source, is less than the amount of tax deducted at source, the differential amount will be refunded or adjusted against the present or future liability.
Further clarifications, please let me know....
Dear Mr. Bala,
Thanks for your comment on WCT-TDS .
I still have one question that whether WCT-VAT is applicable transfer of property to SEZ.
Regards,
Manish Pandey
Dear Manish,
Please read the file which i had uploaded in Brief Understanding of Works Contract Tax and VAT
Balu
When you have posted this?
Thanks Mr.Bala.
One more question :
What is advance ruling under AP-VAT ?
Manish
It is clearly explained in APVAT Act 2005 about the Advance Ruling and its application. The below is given for your quick understanding:
Thank You Mr.Bala,
One query I have as below :
Suppose A company which is in SEZ unit has given an order for supply of goods to the dealer who is in DTA and registered under AP VAT.The dealer is forwarded the order to another dealer who also in AP and he supply goods direct to SEZ unit as per instruction received from first dealer .He raises inovice by mentioning consignee to SEZ unit and bill to first dealer.
In above case whether dealer will charge VAT or not?
Thanks
Manish Pandey
Hi Manish,
For the above query you required, VAT is need not be charged and it is a Deemed Export Sale for which Form H to be issued to the party.
Regards,
Bala Kishan
Thanks for your view .
In case of CST purchase, If an OEM vendor direclty send goods to SEZ unit after receiving order from a dealer. The original order is place by SEZ unit to dealer.
1. Can OEM vendor send goods to SEZ unit without charging CST , even if order palced by Dealer who is DTA area.
2. Can SEZ unit issue Form-I to OEM vendor?
3. will it be any Form-C/E-1 transaction performed in above case?
Waiting for your view .
Regards,
Manish Pandey
I am not that much expert in VAT. Is OEM means Original Equipment Manufacturer. If so, which location is this OEM vendor is located??
For SEZ Units there is no VAT / CST is charged and if at all charged, form I can be issued.
There is no concept of Form C/E-1 in the transaction performed in the above case.
(hope a bit I cleared your doubt)...let me know your view in this regard for my better understanding.
Regards,
Bala Kishan.
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