TAX RATES & CALCULATION OF TAXES

TAX RATES & CALCULATION OF TAXES

7. GENRAL CASE: HOW TO CALCULATE TAXABLE TURNOVER?

Value added tax is paid on Taxable Turnover. Thereby calculation of Taxable Turnover is great importance.

Calculating Taxable Turnover
GROSS TURNOVER	XXX
Less: turnover of sale of goods outside the State	(xxx)
Less: turnover of sale of goods in the course of inter-State trade and commerce	(xxx)
Less: turnover of sale of goods in the course of the import of the goods into the territory of India	(xxx)
Less: turnover of sale of goods in the course of the export of the goods out of the territory of India	(xxx)
Less: turnover of export of goods out of State turnover of disposal of goods otherwise than by sale	(xxx)
Less: turnover of sale of exempted goods in the State	(xxx)
Less: turnover of sale of goods to such foreign diplomatic missions/consulates and their diplomats, and agencies and organisations of the United Nations and their diplomats as may be prescribed	(xxx)
Less: turnover of sale of goods returned to him, subject to such restrictions and conditions as may be prescribed	(xxx)
Add: Purchases chargeable to purchase tax.	xxx
Taxable Turnover	XXX

Conditions

1. If the turnover in respect of any goods is included in a deduction under any 1 clause then, it shall not form part of deduction under any other clause i.e. dual deduction would not be allowed.
2. A VAT dealer who wishes to make any of the following deductions from his gross turnover shall, when so required by an assessing authority, produce before it the documentary evidence.

Situation	Documentary evidence	Remarks
Turnover of sales made outside the State, of goods purchased outside the State	Purchase and sale invoices and documents relating to receipt and delivery of goods outside the State.	-
Turnover of sales made in the course of inter-State trade and commerce to a dealer registered under the Central Act or to a Government department	Sale invoice, declaration in Central form C or D, as the case may be, and documents showing delivery of goods outside the State.	Where the delivery of the goods outside the State is proved but declaration in Central form C or D is not produced, such delivery may, in accordance with the provisions of the Central Act, be deemed to have taken place as a result of sale made in the course of inter-State trade and commerce to a dealer not registered under the Central Act.
Turnover of sales made in the course of inter-State trade and commerce to any person who is not a dealer registered under the Central Act	Sale invoice and documents showing delivery of goods outside the State.	-
Turnover of sales made in the course of import of goods into the territory of India	Sale invoice and documents showing constructive delivery of goods to the purchaser.	-
Turnover of sales made in the course of export out of the territory of India within the meaning of section 5(3) of the Central Sales Tax Act.	Sale invoice, declaration in Form VAT-D2 or Central form H, as the case may be, and documents showing export of goods out of India.	Where the delivery of the goods outside the State is proved but declaration in Central form H is not produced, such delivery may, in accordance with the provisions of the Central Act, be deemed to have taken place as a result of sale made in the course of inter-State trade and commerce. Also refer Special Conditions listed after the table.
Turnover of sales made in the course of export of goods out of the territory of India within the meaning of section 5(1) Central Sales Tax Act.	Sale invoice, custom clearance certificate and shipping documents.	-
Turnover of export of goods out of State	Documents showing delivery of goods outside the State and declaration in Central form F.	Where delivery of goods outside the State is proved but no declaration in Central form F is produced, such delivery may be deemed to have taken place as a result of sale in the course of inter -State trade and commerce.
Turnover of disposal of goods otherwise than by sale	Documentary evidence showing disposal of goods otherwise than by sale.
Turnover of sale of exempted goods	Sale and purchase invoices.
Turnover of sales made to the following Organisations of the United Nations for institutional use - I. United Nations International Children's Emergency Fund (UNICEF); and II. World Health Organisation (WHO).	Sale invoice and certificate in Form VAT-C2 signed by an authorised officer of the organisation.
Turnover of return of goods sold	Delivery-cum-debit note raised by the purchaser of the goods for the return of the goods, delivery note(s), if issued separately by the purchaser at the time of returning the goods, and the original sale invoice(s) in respect of the goods.
De-escalation in the price of goods sold	Original sale invoice(s), agreement of sale providing for de-escalation in the price of the goods and debit note issued by the purchaser of the goods in respect of de-escalation.

1. In determining the taxable turnover, no other deduction shall be allowed from gross turnover.
2. Special Condition for Sales made in the course of export out of the territory of India within the meaning of section 5(3) of the Central Sales Tax Act.

The declaration referred shall be in Form VAT-D2 and shall be in triplicate consisting of parts A, B and C.

Each form shall be serially machine numbered or bear a printed serial number. The registered dealer making the sale, shall be furnished Parts A and C of the declaration duly filled and signed by the dealer to whom he makes the sale. Part B of the declaration shall be retained by the purchasing dealer. The form of the declaration may be obtained from the appropriate assessing authority and in case the same are not available with him, the dealer may get them printed at his own cost in the prescribed form and get them authenticated from the said authority.

A single declaration in Form VAT-D2 may cover one or more than one transactions of sale relating to the same export order between the same two dealers in a year. However 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.

IGST new policies are formulated in order to arrive at the taxable turnover.

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