VALUE ADDED TAX FAQS

 

Q.1            WHAT IS VAT?

 

Q.3            WHAT GOODS ARE COVERED UNDER VAT?

 

Q.4            HOW TO CLAIM INPUT TAX CREDIT?

 

Q.5            ARE FARMERS LIABLE TO PAY VAT?

 

Q.6            WHAT ARE THE ADVANTAGES OF VAT?

 

Q.7            WHAT WILL BE THE TAX ELEMENT ON EXPORTS MADE OUT OF THE COUNTRY?

 

Q.8            HOW WILL THE OPENING STOCK ON 1-4-2005 BE TREATED?

 

Q.9            WHAT IS THE DIFFERENCE BETWEEN TAX INVOICES AND CASH MEMOS?

 

Q.10          WHAT IS THE DIFFERENCE BETWEEN EXEMPTED AND ZERO RATED SALES?

 

Q.11          HOW DOES VAT WORK?

 

Q.12          WHAT ARE THE RATES OF TAX UNDER VAT?

 

Q.13          WHAT IS IN-PUT TAX CREDIT?

 

Q.14           DO I NEED TO REGISTER MY BUSINESS AGAIN?

 

Q.15          HOW WILL YOU TREAT TAX PAID UN-SOLD STOCKS AS ON 1.04.2005?

 

Q.16          WHAT PRODUCTS ARE OUTSIDE THE VAT?

 

Q.17          SMALL DEALERS AND COMPOSITION SCHEME?

 

Q.18           RETURN AND DEEMED ASSESSMENT?

 

Q.19          WHETHER INPUT TAX CREDIT IS AVAILABLE FOR INTER-STATE TRANSACTION?

 

Q.20          HOW DOES VAT WORK?

 

Q. 21          WHO IS LIABLE TO PAY TAX UNDER VAT?

 

Q.22          WHAT WILL HAPPEN TO CST ACT?

 

Q.23          WHAT IS TIN?

 

Q.24          IS VOLUNTARY REGISTRATION PERMISSIBLE UNDER VAT?

 

Q.25          WHAT HAPPENS TO DEALER WHO OPTED FOR COMPOSITION SCHEME?

 

Q.26          IS THERE ANY ASSESSMENT UNDER VAT?

 

Q.27          WILLS ALL RETURNS FILED BE PICKED UP FOR AUDIT OR SCRUTINY?

 

Q.28          HOW DO I CLAIM REFUND?

 

Q.29          WHAT KIND OF BOOKS OF ACCOUNTS ARE REQUIRED TO BE MAINTAINED UNDER VAT?

 

Q.30          WHAT ITEMS OF IMPORTANCE ARE EXEMPTED IN  HP VAT ACT?

 

Q.31          HOW INDUSTRIAL INCENTIVES ARE TREATED UNDER VAT?

 

Q.32          HOW IS INPUT TAX CREDIT TO BE CLAIMED? IS THERE ANY REQUIREMENT OF A “ONE TO ONE” CORRELATION BETWEEN INPUT TAX AND OUTPUT TAX?

 

Q.33           WHAT IS COMPOSITION SCHEME?

 

Q.34          WHO IS ELIGIBLE?

 

Q.35          WHAT ARE THE ADVANTAGES OF COMPOSITION SCHEME?

 

Q.36          ARE THERE ANY RESTRICTION?

 

Q.37          WHAT HAPPENS IF DEALERS TURNOVER EXCEEDS RS. 20 LACS ?

 

Q.38          IS THIS SCHEME COMPULSORY FOR THE ALL SMALL DEALERS?

 

Q.39          IS THE TURNOVER OF TAX FREE GOODS, TO BE INCLUDED IN THE TAXABLE TURNOVER.?

 

Q.40          WHAT WILL BE THE FREQUENCY OF PAYMENT OF TAX?

 

Q.41          CAN TURNOVER TAX BE CHARGED FROM CUSTOMERS?      

 

Q.42          CAN CREDIT BE CLAIMED FOR THE VAT PAID ON THE PURCHASES?

 

Q.43          UNDER WHICH NOTIFICATION THE H.P VAT ACT, 2005 IS PUBLISHED FROM WHICH DATE IT IS APPLICABLE.

 

Q.44          WHAT DO I DO TO REGISTER UNDER H.P VALUE ADDED TAX ACT.

 

Q. 45         WHAT HAPPENS WHERE NEW FORMS/ DECLARATION ETC ARE NOT KNOWN TO THE DEALERS.

 

Q.46          WHO WILL ISSUE TAX INVOICE?

 

Q.47          ON WHICH INVOICE  THE INPUT TAX  CREDIT WILL BE AVAILABLE?

 

Q.48          WHAT PARTICULARS SHOULD THE  TAX INVOICE CONTAIN?

 

Q.49          HOW MANY COPIES OF TAX INVOICE ARE TO BE PREPARED?

 

Q.50          WHETHER THE TAX INVOICE CAN BE ISSUED TO A UN-REGISTERED DEALER?

 

Q.51          WHETHER TAX IS TO BE SHOWN SEPARATELY IN TAX INVOICE?

 

Q.52          WHETHER INDUSTRIAL UNIT ENJOYING  THE FACILITY OF DEFERRED PAYMENT OF TAX FOR  THE  BALANCE  UN-EXPIRED PERIOD OF TAX INCENTIVE CAN ISSUE TAX INVOICE?

 

Q.53          WHO WILL ISSUE THE RETAIL INVOICE?

 

Q.54          WHETHER IT IS MANDATORY TO ISSUE RETAIL-INVOICE EXCEEDING RS.200/- BY THE PURCHASER?

 

Q.55          DO ALL  TAX-INVOICES  HAVE TO BE THE SAME FOR ALL AND EVERY  REGISTERED DEALER?