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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.


 
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.



Hey abhi, thanks for the information and i really liked that you explained the whole concept in a very easy way. BTW, i am also uploading a document on VAT which include all the details regarding VAT, so please download and check it.
 

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