VAT implementation in UP:- Status of VAT in India Tamil Nadu J & K Orissa Bihar Jharkhand Chattisgarh Uttaranchal Pondicherry Gujarat WB Punjab Assam Kerala Delhi Haryana MP UP Maharashtra Goa Rajasthan AP Karnataka Chandigarh 5 States implementing VAT wef April 1, 2006 2 State/UT implementing VAT on or after January1 ,2007 All States: VAT UP:- 1 st Jan 20 States VAT live April 1, 2005 2 State/ UT implementing VAT between the period April 1, 2005 to March 31, 2006
Allowed For intra-State purchase of goods for resale or use in manufacture.
Not allowed in respect of Non-VAT goods, captive power plant and other specified capital goods like office equipment, furniture, air conditioners etc.
Input tax credits are not available for inter State (CST) procurement of goods.
Stock transfers outside the State attract a reversal of input tax credit (ITC) to the extent of 3%.
Developers, co-developers and units in SEZ eligible for ITC on taxable goods for
Specified goods to be notified under Schedule IV to be taxable at first point.
Provisional refund of ITC to exporters.
Refund of excess ITC to other dealers at the end of the assessment year next to the assessment year in which it falls due.
ITC on capital goods (other than non creditable capital goods): “Capital Goods” means plant, machine, machinery, equipment, apparatus, tools appliances, electrical installation used for manufacture or processing of any goods for sale by the dealer and includes components, spare parts, accessories, mould dies etc.
ITC on capital goods - in 3 annual installments.
No ITC on capital goods held in stock as on the date of commencement of the Act.
RM & Semi FG & FG ->Available for immediately preceding 6 Months from the date of Commencement of VAT i.e July to Dec,07. ( except exempted goods &CG ) -> Intimation with in 30 days in Sp. Format to Deptt.
Utilization:- 6 Monthly/Qtrly Installments after expiry of 4 months from 1 st Jan.
Other Features of VAT in UP:-
Exports are zero rated and hence eligible for input tax relief/refunds.
Other taxes such as turnover tax, surcharge, additional surcharge, special additional taxes etc. prevailing under the sales tax regime have been abolished.
Entry taxes continue for specific products (diesel, petrol etc) but have been made vatable.
No Departmental assessments - Self assessment of tax.
Leviable on purchase of goods from un-registered dealers.
Payable when such goods / goods manufactured from VAT inputs are disposed off otherwise than by way of sale