VAT (Value Added Tax)

Value Added Tax is a multi point sales tax with set off for tax paid on purchases. It is basically a tax on the value addition on the product. The burden of tax is ultimately born by the consumer of goods. In many aspects it is equivalent to last point sales tax. It can also be called as a multi point sales tax levied as a proportion of Valued Added.

 
In the existing sales tax structure, there are problems of double taxation of commodities and multiplicity of taxes, resulting in cascading tax burden. For instance, in the sales tax structure, before a commodity is produced, inputs are first taxed and then after the commodity is produced with the input tax load, output is taxed again. This caused an unfair double taxation with cascading effects. In the VAT, a set off is given for Input tax as well as tax paid on previous purchases.


The following are the benefits of the VAT:

·         A set-off is given for input tax.

·         There is self assessment by dealers. Hence, there is more transparency.

·         Higher Revenue growth.

·         Overall tax burden is rationalized.

Registration:  

Liability to Tax / Registration under Punjab VAT Act, 2005   (Punjab & Chandigarh)


Gross Turnover exceeds (in Rs.)

 

Who are liable

VAT

1

An importer of taxable  goods for  sale or use in manufacturing or processing any goods in the state

 

 

1 Lac

A manufacturer

5 Lac

A person, who is running a hotel / restaurant.

A person, who wants voluntary registration.

10 Lac

A person, who is running a bakery.

50 Lac

Any other person

Zero

A person dealing in taxable goods, who is registered under the CST Act.

TOT


5 Lac


Any Person


 

Liability to Tax / Registration under Haryana VAT Act, 2003
 

Sr.No.

Description of Class or  Classes of dealers

Taxable quantum

Day on and from which the dealer is liable to tax

1.

Dealer who sells or  purchases any goods in the course of inter-state trade or commerce or in the course of export of the goods out  of, or the import of the goods into,  the territory of India

Nil

On and from the day he makes such sale or purchase for the first time.

2.

Dealer who imports any goods into state

Nil

On and from the day he imports any goods into state for the first time.

3.

Dealer who purchases any goods in the state and exports out of state such goods or the goods manufactured there from

Nil

On and from the day he makes purchases of such goods in the state for the first time incidence of tax.

4.

Dealer who is brick-kiln owner or a liquor licensee under the Punjab Excise Act, 1914 (1 of 1914), or who deals in minerals, lottery tickets or such other goods as may be prescribed.

Nil

On and from the day his gross turnover in any year first exceeds the taxable quantum.

5.

Any other class or classes of dealers

Five Lakh rupees or such other sum as may be prescribed and different sums including nil may be prescribed for different classes of  dealers

On and from the day following the day his gross turnover in any year first exceeds the taxable quantum.

 

Issue of Invoice: 

Every –

are obliged to issue an invoice.

Such an invoice is required to be issued to the purchaser of goods if the value of goods sold exceeds Rs 100/-

Types of Invoices under VAT Act

1.     VAT Invoice : An invoice issued by a Taxable Person  against sale of goods to another Taxable Person is described as a VAT Invoice

2.     Retail  Invoice : An invoice issued by a Taxable Person  against sale of goods to another Persons other than taxable persons is described as a VAT Invoice

Declaration in Form VAT – D3 (outward) :– 
The declaration in form VAT – D3 (outward), is popularly known as “Challan Outward”.  Its is like ST-38 under the repealed HGST Act, 1973. It has mandatorily to be used by the dealer registered under the Haryana VAT Act, 2003 for consigning / dispatching of goods exceeding twenty five  thousand rupees.

1.     From any place in the state to any other place in the state : or

2.     From any place in the state to any other place outside the state.

Form VAT-D3 is prepared in two copies and is filled by the consignor (seller / dispatcher of goods). Original copy accompany the goods while in transit. In this form name of the commodity, quantity, weight value of the goods, cash memo/bill of sale/delivery note and the date of their dispatch is filed by the consignor. Name and address of the consignee, registration certificate number if any, nature of transaction, stamp and date of filling the challan are also filled by the consignor. The other portion of the challan is filled by the transporter by giving the registration number of goods carriage, date and time of dispatch and stamp of name and address of the transporter is appended along with his signatures.

Second part is the “counter foil “is kept by the consignor for record.

Duplicate copy of the challan is handed over to the assessing authority along with the return.

Declaration in Form VAT –D3 (Inward) :-

The declaration in form VAT –D3 (Inward), referred to in sub – section (2) of section 31 is popularly known as “Challan Inward “.  It is similar to ST–38 under the repealed HGST act, 1973. Use of this declaration is compulsory. It has mandatorily to be used by a dealer registered under the Haryana VAT Act 2003, for bringing or receiving goods from outside the state exceeding twenty five thousands rupees –

1.     To any place in the state; or

2.     For carrying any goods purchased from any person /dealer in the state who is not required to use a declaration.

Form VAT –D3 (Inward) is filled in two copies by the consignee (purchaser / receiver of goods) of Haryana before he sends or give the same to the consignor. Before sending the Form VAT–D3, the consignee of the goods in Haryana fills his name and address, registration number, nature of transaction (purchase). Stamp of the RC, name and address of the consignee dealer along with the date of dispatch is affixed on this form. The other portion of the challan is filled by the consignor by giving therein the nature of commodity, quantity, weight, value, number and date of cash memo / bill of sale/delivery note, stamp and address of the consignor along with his address. The portion meant for transporter is filled by the transporter along with his registration number, date of journey, stamp and name etc.

Original of the declaration in form VAT –D3 (outward) is sent to the consignor for accompanying the goods while in transit. Counter foil which is retained by the consignee for record is filled by him after the receipts of the goods.

Haryana

Checklist for VAT/CST Registration
Rates / Schedules
Forms
E-payment of VAT/CST
VAT/CST Jurisdiction - Panchkula
Surety Bonds
Bank Guarantee

Chandigarh

Checklist for VAT/CST Registration
Rates / Schedules
E-Filing of VAT/CST Returns
E-payment of VAT/CST
VAT/CST Jurisdiction
Surety Bonds
Bank Guarantee


Punjab

Checklist for VAT/CST Registration
Rates / Schedules
E-Filing of VAT/CST Returns
Surety Bonds
Bank Guarantee