TAX RATES & CALCULATION OF TAXES

TAX RATES & CALCULATION OF TAXES

Procedure

• The declaration shall be in Form VAT-D2 in triplicate consisting of Parts A, B and C. These shall be printed under the authority of the State Government and each form shall be serially machine numbered or bear a printed serial number. The authorised dealer purchasing the goods (hereinafter referred, to as the purchasing authorised dealer) shall give to the VAT dealer selling the goods (hereinafter referred to as the selling VAT dealer) Parts A and C of the declaration duly filled in and signed by him.
• No selling VAT dealer shall accept any declaration from a purchasing authorised dealer unless it is furnished in Form VAT-D2 printed under the authority of the State Government and obtained from the assessing authority as provided under Rule 17(5) and 17(6) or is authenticated as stipulated in Rule 17(16) otherwise he shall forfeit his claim for being assessed to tax at the lower rate specified in section 7(2).
  The selling VAT dealer shall retain Part C with him and produce Part A before the assessing authority at the time of assessment when so required by him.
• The purchasing authorised dealer shall produce Part B before the assessing authority at the time of assessment when so required by him.
• Any authorised dealer registered under the Act shall apply to the appropriate assessing authority for the supply of declaration forms stating clearly his reasonable demand for a period of not more than 1 year disclosing the stocks and details of declaration forms already used and in hand and also the date on which and the number in which he was last issued the declaration forms. Failure to furnish details of the forms already issued shall be sufficient reason not to issue forms.
• If the assessing authority is satisfied that the requisition of the dealer is genuine and reasonable, he may issue him as many declaration forms as he may deem fit on prior payment of such sum as may be fixed by the Government, from time to time. The payment may be made either in cash or into the Government treasury.
  No dealer to whom a declaration in Form VAT-D2 has been issued shall transfer the same to any person, except as provided in rule 17(1).
• A single declaration in Form VAT-D2 may cover one or more than one transactions of sale between the same two dealers in a year. Provided that where, in the case of any transaction of sale, the delivery of goods is spread over to different financial years it shall be necessary to furnish a separate declaration in respect of goods delivered in each financial year.
• The dealer to whom the declaration forms have been issued shall be responsible for their proper custody and use. If a declaration for m, whether blank or completed is lost either from the custody of any selling VAT dealer or from the purchasing authorised dealer, or in transit, the dealer from whose custody it is lost or when lost in transit the dealer who dispatched it, shall report the loss to the appropriate assessing authority and shall furnish in respect of one or more such form(s) so lost, an indemnity bond in Form VAT-B1 to the appropriate assessing authority for such sum as the said authority may, having regard to the circumstances of the case fix.
• If the duly completed and signed declaration form is lost by the purchasing authorised dealer or in transit or from the custody of the selling VAT dealer, the latter shall obtain a duplicate form from the former. In the absence of such duplicate form the selling VAT dealer shall not be entitled to the lower rate of tax under section 7(2).
  Where any purchasing authorised dealer issues to selling VAT dealer duplicate form referred to in rule 17(10), he shall give the following certificate in red ink across the page on all the three copies of the duplicate form and shall sign the certificate:-
  "I ................... hereby certify that this is the duplicate of declaration form No. ......... signed on ......... and issued to ........................... ......... who is a registered dealer holding TIN. ..........................".
• The dealer referred to in 17(6) shall maintain a register in Form VAT-D5 containing accounts of t he declaration forms issued to him.
• If any registered dealer closes down his business or his certificate of registration is cancelled for any other reason, he shall forthwith furnish part B of the used declaration forms and surrender in triplicate the unused forms with him to the appropriate assessing authority and where he fails to furnish or surrender the forms, these shall be deemed to have been declared invalid from the date of closure of his business or from the date his certificate of registration is cancelled, as the case may be. Provided that the details of such declarations shall be immediately publicised by uploading on the website www.haryanacom under the head "VAT - Obsolete declarations".
• The dealer shall produce the register prescribed in rule 17 (12) on demand by any taxing authority not below the rank of Assistant Excise and Taxation Officer, for inspection.
• The State Government may, by uploading on the website www.haryanacom, declare certain serial number(s), series, design or colour of declaration forms as obsolete and invalid with effect from a specified date. All the dealers shall, on or after the date from which the declaration forms are so declared obsolete and invalid, surrender to the appropriate assessing authority all such blank forms which may be in their possession and obtain in exchange such new forms as may be substituted for the forms declared obsolete and invalid. A purchasing dealer shall replace any form, furnished by him to the selling dealer for making purchase of goods at a lower rate of tax applicable under section 7(2), before it has been declared obsolete and invalid, with the new form.
• When the declaration in Form VAT-D2 are not available with the appropriate assessing authority, an authorised dealer may with the prior permission of the officer in charge of the district, in which his place of business is situated and in case he has business in more than one district, his head office as declared under rule 15 is situated, get the said forms self-printed and get them authenticated by the appropriate assessing authority who shall authenticate each form by stamping with his official seal and putting his signatures: Provided that the officer incharge of a district may, in case of shortage or non-availability of blank forms in his district, by a general order issue permission for such period in favour of all or such authorised dealers or class or classes of dealers registered in his district as may be specified in the order to get the self-printed forms authenticated by the appropriate assessing authority. He shall withdraw the order when he finds that the forms printed under the authority of the State Government are available in sufficient numbers.
• The appropriate assessing authority shall authenticate as many forms as may be sufficient to meet the requirements for a period of one year or for the period up to the date of expected supply of the forms printed under the authority of the State Government whichever is shorter.
• The provisions of rule 17(1) to 17 (15) shall apply mutatis mutandis in relation to the forms, accounts and custody of the authenticated forms.
• Notwithstanding anything to the contrary contained in the foregoing provisions of this rule, a VAT dealer selling goods to an authorised dealer may obtain on a carbon copy of the tax invoice issued by him, the declaration of the purchasing authorised dealer in the following form:
  "Certified that I/we have purchased the goods described in this tax invoice for the purpose of use (i) in the manufacture of goods for sale, or (ii) in the telecommunications network, or (iii) in mining, or (iv) in the generation or distribution of electricity or any other form of power, or (v) in packing of goods which have been purchased for either of the aforesaid purposes; and that I/we are entitled to purchase them on the authority of registration certificate with TIN ...................... held by me/us (Strike out the purpose not applicable)", duly signed by him.
  However selling VAT dealer shall self -authenticate the invoice book(s) he shall be using for this purpose and he shall in writing send in advance an intimation to the appropriate assessing authority indicating the series and serial numbers of such invoice book(s).

In India GST related various recommendation shall be made by the GST Council.

1. Return of goods

Dealer issues a DDN

A dealer who returns any goods sold to him shall issue to the seller a duly signed delivery-cum -debit note ('DDN') showing necessarily the following particulars, namely:

• Date of issue of DDN;
• Name of the dealer (with TIN, where applicable) issuing DDN;
• Name of the seller (with TIN, where applicable) to whom the goods have been returned;
• Description, quantity and value of the goods returned.- Value of the goods returned shall be the price charged by the seller in respect of the original sale of such goods and shall not include the tax charged, if any;
• Tax, if any, charged by the seller on the original sale of the goods returned;
• Date(s) and number(s) of delivery note(s) issued at the time of return of the good;
• Date(s) and number(s) of original invoice(s) issued by the seller in respect of the sale of the goods (referred to in item (iv)).

Dealer does not issue DDN

Where the person returning the goods is not a dealer or is a dealer in other State who did not issue a DDN in respect of the goods returned by him, the dealer who sold the goods and to whom these were returned, may issue a credit note in respect of them and deduct their value from his gross turnover. However such dealer shall be obligated to furnish evidence as and when required by the assessing authority.
Claim of return of goods inadmissible.

Claim of return of goods sold to non-registered dealer shall not be admissible if the goods are returned after the expiry of a period of 180 days from the date of sale.

No claim of return of goods sold to any person shall be admissible if the claim is not made in the return for the quarter in which the goods have been returned.

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