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Sale And Purchase Under VAT.
EVENT OR TRANSACTION, WHICH ATTRACTS TAX
Value Added Tax is:
• on sale or purchase of goods
• by a dealer, in the course of business
• for a consideration
• payable on turnover of sales or purchase
• at every point
• At the rate specified for the relevant goods.
Let us understand few concepts like:
Sale
Purchase
Sale means:
sale of goods
for cash or deferred payment or other valuable consideration
It includes:
Any supply by:
• a society or
• a club or
• an association, to its members on payment of price or fees or subscription
It excludes:
• Mortgage
• Hypothecation
• Charge or
• Pledge
Transfers of property in goods or right which are deemed to be sales:
The transfer of property in goods, Otherwise than pursuant to a contract for a consideration
The transfer of property in goods (in the same form or otherwise) involved in the execution of a works contract
A delivery of goods on hire-purchase or payment by installments;
The transfer of right to use any goods on lease
The supply of goods by any association or body of persons incorporated or not, to a member thereof
The supply of food or any other article for human consumption or any drink as service or otherwise
Every disposal of goods by certain specified entities, otherwise than in the course of business.
Purchase includes:
Purchase means:
Acquisition of property in goods
within the state
for cash, deferred payment or other valuable consideration
It includes:
• All the transfer of property in goods specifically listed in the definition of state; and
• All the transfer of property in goods deemed to be sale.
It excludes such transactions as been excluded form the definition of sale.
SAT [Special Additional Tax]
It may be independent of VAT or addition to VAT payable under the Act.
SAT will be levied on the sale of prescribed goods.
The goods likely to be liable to SAT are:
Liquor
Petrol
Aviation turbine fuel
Diesel
Raw opium
Tendu leaves
Natural gas
SAT would be levied at the rate prescribed in the respective schedule or notification.
EVENT OR TRANSACTION, WHICH ATTRACTS TAX
Value Added Tax is:
• on sale or purchase of goods
• by a dealer, in the course of business
• for a consideration
• payable on turnover of sales or purchase
• at every point
• At the rate specified for the relevant goods.
Let us understand few concepts like:
Sale
Purchase
Sale means:
sale of goods
for cash or deferred payment or other valuable consideration
It includes:
Any supply by:
• a society or
• a club or
• an association, to its members on payment of price or fees or subscription
It excludes:
• Mortgage
• Hypothecation
• Charge or
• Pledge
Transfers of property in goods or right which are deemed to be sales:
The transfer of property in goods, Otherwise than pursuant to a contract for a consideration
The transfer of property in goods (in the same form or otherwise) involved in the execution of a works contract
A delivery of goods on hire-purchase or payment by installments;
The transfer of right to use any goods on lease
The supply of goods by any association or body of persons incorporated or not, to a member thereof
The supply of food or any other article for human consumption or any drink as service or otherwise
Every disposal of goods by certain specified entities, otherwise than in the course of business.
Purchase includes:
Purchase means:
Acquisition of property in goods
within the state
for cash, deferred payment or other valuable consideration
It includes:
• All the transfer of property in goods specifically listed in the definition of state; and
• All the transfer of property in goods deemed to be sale.
It excludes such transactions as been excluded form the definition of sale.
SAT [Special Additional Tax]
It may be independent of VAT or addition to VAT payable under the Act.
SAT will be levied on the sale of prescribed goods.
The goods likely to be liable to SAT are:
Liquor
Petrol
Aviation turbine fuel
Diesel
Raw opium
Tendu leaves
Natural gas
SAT would be levied at the rate prescribed in the respective schedule or notification.