Financial Daily from THE HINDU group of publications
Monday, Mar 31, 2003
Financial Daily from THE HINDU group of publications Monday, Mar 31, 2003 |
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Taxation Industry & Economy - Taxation New tax, new questions Sushil Mehra
IS VAT a direct or indirect tax? Is VAT a "multi-stage charge and collect" tax? When do dealers have to register under VAT? Is VAT registration compulsory for all dealers? What are the forms needed to be filled for registration? Are dealers who are already registered under a State sales tax legislation automatically registered under VAT or should they apply for a new registration? Should the application for registration contain photos of all partners/directors or of any authorised person? Is their exemption from registration for any type of dealer? Who will be the registering authority for the dealer? Can the dealer opt to be registered under the same authority where he is already registered under a State sales tax legislation? The nature of business can be manufacturing, trading, job-work, or works contract. Is there a separate registration required for each of these? What is input tax? What is input tax credit? Will input tax credit be available on inter-State purchases? What is the procedure for adjusting input tax paid against output tax payable? What is the maximum period before which input tax credit should be claimed? Is a copy of the original sale invoice a must to claim input tax credit? Will the dealer receive credit on the transitional stock as on March 31, 2003? What is the procedure and methodology for claiming the credit on transitional stock? What are capital goods? Will capital goods be eligible for input credit? Is their any limit for the same? Is their any input credit available on purchases from unregistered dealers? Is their any input credit available on overseas import purchases of a dealer? When will the government notify the tax rate payable as per the various schedules? Will there be any code for the products? Will the invoice under VAT be different from the one being currently used under the State sales tax legislation? Can existing invoices be used with a rubberstamp for modifications? Can the dealer make as many number of copies of the invoices as he requires? Can the dealer issue an original copy again? Can each branch office have different starting numbers? Can the dealer make invoices showing sale price inclusive of VAT? What is a debit note and credit note under the VAT law and under what circumstances can it be used? Is their any special procedure to be followed for "goods returned" or "rejected goods"? Can a single invoice be issued for products with different tax rates? What is composition tax? Who is a composition dealer? What are accounting records that are to be maintained by a composition dealer? Can the composition dealer claim input credit? Should the format of a composition dealer's invoice be different from other VAT invoices? Will a VAT dealer be eligible for input credit on inputs purchased from a composition dealer? Is their any VAT on labour charges? Some labour-charges dealers use some inputs in their activities, for example: a) printers and photocopier dealer using ink and paper; b) tailors using thread and buttons? Can they claim input credit on such inputs? Does a works contract dealer require a separate registration under VAT? Can a works contract dealer take the benefit of composition tax? What are the accounting books and records that are to be maintained by a full-fledged VAT dealer? Should the sale register or purchase register show the quantity and value of products sold? Is the maintenance of a stock book compulsory? Can the accounting records be maintained on the computer or should a copy also be maintained in manual format? What is a monthly return? Will input refunds be the sole basis of the monthly return or is their any other method? Can errors in monthly returns be rectified and can a revised return be filed? Should there be separate return for each branch office or is a single return to be filed? What is the date before which a monthly return and payment of tax should be filed? Should the payment of tax be made by cheque to the registering authority only or is there any other channel to deposit the same? What is the maximum period within which the assessing officer (AO) has to pay the refund claimed? Can the AO modify the refund payable at his discretion? What are deferred tax payments and the procedure for the same? What is the procedure for transferring goods from godowns to branch offices for sales? Is the delivery note specified under Form-500 be used for the same? In what circumstances should Form-500 be used? Is there any tax procedure for dealers who sell materials through their delivery vans? What kind of invoices should they issue? What documents should accompany goods being sent or brought back from job work? Will VAT be levied on sales executed on the Internet? MRP rate and VAT have contradictions. Are there any implications if a sale price, after adding VAT, exceeds the MRP rate? Can a composition tax dealer change his status to a full-fledged VAT dealer? Will there be a yearly assessment or annual self-assessment? What are forms to be used for annual returns and the date before which it should be filed? What will be the status of invoices made before March 31, 2003 (before VAT) but the materials were received after April 1, 2003 (after introduction of VAT)? Is their going to be any separate procedure for the payment and assessment of tax for the financial year 2002-2003? Is their any special procedure for exporters, EOU, units registered under STPI, units in EPZs? Should VAT be charged on sales made to exporters? Should VAT be charged on sales made to Central and State Government Departments? Are there any special rates for the same? Can the existing C-Forms with new VAT numbers be used for inter-State sales?
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