VAT charges in case of printing & stationery

The One Says:

My dear friend Vartika, your question does not seem to be clear please re-phrase. Moreover VAT rate is 2%. If you are asking for accounting treatment it is rather simple (just calculate VAT on the "Value Added")

(The One assumes that this is the reason for increase in views without answers from all the very kind and helpful members of this wonderful forum)

Statutory Warning: The One does not speacialise in Tax (more in Audit and Accounts) but can't help but answer quries  :)

VAT is on Sale, Not on services. When you say printing and stationary does it mean the job undertaken by printer, or sales made by stationers.

If it is sales it will attract VAT, if it is job it may attract Work contract tax (ie. tax when property in goods are transferred).

To find rate of tax on sale one has to refere the vat schedule, If it is work contract payer has to deduct TDS(WCT) and contractor/Job worker will be assessed to work contract tax. Please refer Ganon Dunkerly decision for work contract tax assessment.

There are good websites which contains departmental clarification, notification, act & Rules.

Each states have there own vat legislation (except tamilnadu & UP).

Regards
balaji_857 @ rediffmail.com

Hi,

Just go to [b]www.dvat.gov.in[/b], and then in the public docs. notification in year 2006-07 under DVAT.

It will help you a lot.

Regds
Dheeraj Verma
Verma.dheeraj @ yahoo.com

we are purchasing stationery as per the specification given by our company i.e. what should be the size / colour of logo / name of the company etc. whether it attracts works contract or not.

Wheteher this is a contract of sales or a works contract ? If it is a works contract, whether in execution of this contract any transfer of property has been made? thease are the questions which are to be solved befoe getting answer to your query. I hope the follwoing quotes from the latest decision of the Supreme Court (3 Judges) in the case [2005] 140 STC 0022- - State of Andhra Pradesh Vs. Kone Elevators (India) Ltd. may help you in arriving at a decision. Wherein it was held that :- “If the intention is to transfer for a price a chattel in which the transferee had no previous property, then the contract is a contract for sale. Ultimately, the true effect of an accretion made pursuant to a contract has to be judged not by artificial rules but from the intention of the parties to the contract. In a "contract of sale", the main object is the transfer of property and delivery of possession of the property, whereas the main object in a "contract for work" is not the transfer of the property but it is one for work and labour. Another test often to be applied to is: when and how the property of the dealer in such a transaction passes to the customer: is it by transfer at the time of delivery of the finished article as a chattel or by accession during the procession of work on fusion to the movable property of the customer? If it is the former, it is a "sale"; if it is the latter, it is a "works contract". Therefore, in judging whether the contract is for a "sale" or for "work and labour", the essence of the contract or the reality of the transaction as a whole has to be taken into consideration. The predominant object of the contract, the circumstances of the case and the custom of the trade provides a guide in deciding whether transaction is a "sale" or a "works contract". Essentially, the question is of interpretation of the "contract". It is settled law that the substance and not the form of the contract is material in determining the nature of transaction. No definite rule can be formulated to determine the question as to whether a particular given contract is a contract for sale of goods or is a works contract. Ultimately, the terms of a given contract would be determinative of the nature of the transaction, whether it is a "sale" or a "works contract". Therefore, this question has to be ascertained on facts of each case, on proper construction of terms and conditions of the contract between the parties.”

what is the ratr of vat in uatterpradesh on printed envelopes for education purpose

sir,

it doesnot attrach works contract. it should be billed vat for the product becasue it is coming under stastionery items, doesnot attarct works contract.

regards.

p.r.ganesh