ANDHRA PRADESH VALUE ADDED TAX ACT, 2005
SCHEDULE(See Section 7) SCHEDULE - 1
(See Section 7)
List of Goods exempt from Tax under Section 7
S1.No.
Name of the Commodity
1.
Agricultural implements manually operated or animal driven
2.
Aids and implements used by handicapped persons
3.
Aquati
SCHEDULE (See Section 8) SCHEDULE 2
(See Section 8)
Transactions Zero-Rated and Eligible for Input Tax Credit
Sl.No.
Description
1.
Sale of taxable goods in the course of inter-state Trade or Commerce falling within the scope of Section 3 of the Central Sales Tax Act, 1956
2.
Sale of goods falling within the scope of Section 5(1) and Section 5(3) of the Central Sales Tax Act, 1956.
SCHEDULE[See sub-section (3) of Section 4] SCHEDULE 3
[See sub-section (3) of Section 4]
List of goods taxable @ 1%
Sl.No
Name of the Commodity
1.
Bullion and Specie.
2.
Articles and Jewellery made of bullion or specie or both and Jewellery embedded with precious stones and semi-precious stones and gold coated or gold covered jewellery.
(ii) Steel semis, ingots, slabs, blooms and billets of all qualities, shapes and sizes.
(iii) Skelp bars, tin bars, sheet bars, hoe-bars and sleeper bars;
(iv) Steel bars, founds, rods, squares, flats, octagons and hexagons; plain and ribbed or twisted, in coil from as well as straight length
(v) Steel structurals, angles, joints, channels, tees, sheet piling sections, sections or any other rolled sections
(vi) Sheets, hoops, strips and skelp, both black and galvanized, hot and cold rolled, plain and corrugated in all qualities, in straight lengths and in coil form
SCHEDULE [See sub-section (3) of Section 4] SCHEDULE 5
[See sub-section (3) of Section 4]
Goods Taxable at Standard Rate (RNR) of 12.5% All Goods other than those specified in Schedules I, III, IV and VI.
SCHEDULE [See sub-section (5) of Section 4] SCHEDULE 6
[See sub-section (5) of Section 4]
Good subjected to tax at special rates
Item No.
Description
Point of levy
Rate of tax
1.
All liquors, bottled and packed as per the provisions of the A. P. Excise Act, 1968 (including imported liquor) but excluding toddy and arrack:
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(1) This Act may be called the Andhra Pradesh Value Added Tax Act, 2005.
(2) It extends to the whole of the State of ndhra Pradesh.
(3) (a) Sections 1,2,17,18 and 78 shall be deemed to have come Into force with effect from 31st January, 2005 and date as the Government may, by notification, appoint,
(b) the remaining provisions shall come into force on such date as the Government may, by notification, appoint.
In this Act, unless the context otherwise requlres -
(1) Additional Commissioner means any person appointed to be an Additional Commissioner of Commercial Taxes under Section 3A;
(2) Appellate Deputy Commissioner means any person appointed under Section 3-A to be an Appellate Deputy Commissioner or any other officer not below the rank of Deputy Commissioner authorized by the Commissloenr to be an Appellate Deputy Commissioner.
(3) Appellate Tribunal means the Appellate Tribunal appointed under Section 3.
(4) Assessing authority means any officer of the Commercial Taxes Department authorized by the Commissioner to make any assessment in such area or areas or the whole of the State of Andhra Pradesh.
(5) A
(1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and two other members to exercise the functions conferred on the Appellate Tribunal by or under the Act. The Chairman shall be a judicial officer not below the rank of a District Judge Grade-I and of the other two members, one shall be an officer of the State Government not below the rank of a Joint Commissioner of Commercial Taxes, and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner.
(2) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the Government.
(3) Notwithstanding anything contained in sub-section (1), the Government may at any time, by order, constitute an additional Bench of the Tribunal, consisting of a Chairman who shall be a District Judge Grade - I and two
The State Government, may, appoint a Commissioner of Commercial Taxes and as many Additional Commissioners of Commercial Taxes, Joint Commissioners of Commercial Taxes, Appellate Deputy Commissioners of Commercial Taxes, Deputy. Commissioners of Commercial Taxes, Assistant Commissioners of Commercial Taxes, Commercial Tax Officers and Deputy Commercial Tax Officers as they think fit, for the purpose of performing the functions respectively conferred on them by or under the Act. Such officers shall perform the said functions within such area or areas or the whole of the State of Andhra Pradesh as the Government or any authority or officer empowered by them in this behalf may assign to them.
(1) Save as otherwise provided in the Act. every dealer registered or liable to be registered as a VAT dealer shall be liable to pay tax on every sale of goods, in the State at the rates specified in the Schedules.
(2) Every dealer who has not opted for registration as a VAT dealer and who is registered or liable to be registered for TOT or whose taxable turnover in a period of twelve (12) consecutive months exceeds Rs.5,00,000/- (Rupees five lakhs only) but does not exceed Rs. 40,00,000/- (Rupees forty lakhs only) shall pay tax at the rate of one percent (1%) on the taxable turnover in such manner as may be prescribed.
(3) Every VAT dealer shall pay tax on every sale of goods taxable under the Act on the sale price at the rates specified in the Schedules III, IV and V, subject to the provisions of Section 13.
Nothing contained in the Act shall be deemed to impose or authorise the imposition of a tax on the sale or purchase of any goods, where such sale or purchase takes place:
(a) outside the State; or
(b) in the course of the import of the goods into, or export of the goods out of the territory of India; or
(c) In the course of inter-State trade or commerce.
Explanation; The provisions of Chapter II of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall apply for the purpose of determining when a sale or purchase takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export.
Where goods sold or purchased are contained in containers or are packed in any packing material liable to tax under the Act, the rate of tax applicable to such containers or packing material shall, whether the price of the containers or packing material is charged for separately or not, be the same as the rate of tax applicable to such goods so contained or packed, and where such goods sold or purchased are exempt from tax under the Act, the containers or packing material shall also be exempted.
The goods listed in Schedule I to the Act shall be exempted from tax under the Act.
Subject to the conditions in Section 9 and Section 13 of the Act, the following shall be zero- rated sales for the purpose of the Act and shall be eligible for input tax credit:
(a) Sale of taxable goods in the course of inter-State trade and commerce falling within the scope of S.3 of the Central Sales Tax Act, 1956;
(b) Sale of goods falling within the scope of sub sections (1) and (3) of S.5 of the Central Sales Tax Act, 1956.
(c) Sale of goods to any unit located in Special Economic Zone.
Every dealer, who is liable to pay tax on the sale of goods specified in Schedule VI. shall be eligible for input tax credit subject to the conditions in Section 13 of the Act and in the manner prescribed.
(1) Any dealer who is not registered or does not opt to be registered as VAT dealer shall not be entitled to claim input tax credit for any purchase, and shall not be eligible to issue a tax invoice.
(2) Any dealer who is registered as a VAT dealer shall not be liable to Turnover Tax from the effective date of such registration.
(1) Subject to sub-section (2), the VAT payable on a sale liable to VAT shall be calculated by applying the rate of tax specified in the Schedules, on the sale price of goods.
(2) Where the sale price of goods is inclusive of VAT, the amount of VAT shall be determined in accordance with the formula prescribed.
(3) Where a dealer is liable to pay turnover tax under sub-section (2) of Section 4, the tax shall be calculated by applying the rate of Turnover Tax specified therein on the taxable turnover.
The VAT payable by a VAT dealer or VAT credit or refund due to a VAT dealer for a tax period shall be calculated in accordance with the formula prescribed.
(1) Subject to the conditions if any, prescribed, an input tax credit shall be allowed to the VAT dealer for the tax charged in respect of all purchases of taxable goods, made by that dealer during the tax period, if such goods are for use in the business of the VAT dealer. No input tax credit shall be allowed in respect of the tax paid on the purchase of goods specified in Schedule VI.
(2)
(a) A dealer registered as a VAT dealer on the date of commencement of the Act, shall be entitled to claim for the sales tax paid under APGST Act, 1957 (Act VI of 1957) on the stocks held in the State on the date of commencement of the Act subject to the conditions and in the manner as may be prescribed: Provided that such goods should have been purchased from 1-4-2004 to 31-03-2005 and are goods eligible for input tax credit,
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A VAT dealer making a sale liable to tax to another VAT dealer shall issue at the time of sale, a tax invoice in such form as may be prescribed.
(1) The Government may, if it is necessary so to do in the public interest and subject to such conditions as it may impose, by a notification, provide, for grant of refund of tax paid to any person, on the purchases effected by him and specified in the said Notification.
(2) Any notification under sub-section (1) may be issued so as to be retrospective to any day not earlier than the appointed day and such Notification shall take effect from the date of its publication in the Gazette or such other earlier or later date as may be mentioned therein.
(3) An application for refunds shall be made In duplicate to the Commissioner within a period of six months from the date of purchase or as the Government may prescribe In the notification and it shall be accompanied by the purchase invoice in original.
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(1) The burden of proving that any sale or purchase effected by a dealer is not liable to any tax or is liable to be taxed at a reduced rate or eligible for input tax credit shall lie on the dealer.
(2) Where a dealer issues or produces a false bill, voucher, declaration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to tax or liable to be taxed at a reduced rate, or eligible for input tax credit is guilty of an offence under Section 55 of the Act.
(1) Every dealer other than a casual trader shall be liable to be registered in accordance with the provisions of the Act.
(2) Every dealer commencing business and whose estimated taxable turnover for twelve consecutive months is more than Rs. 40,00,000/- (Rupees forty laks only) shall be liable to be registered as a VAT dealer before the commencement of business.
(3) Every dealer whose taxable turnover in the preceding three months exceeds Rs. 10,00,000/- (Rupees ten lakhs only) or in the twelve preceding months exceeds Rs. 40,00,000/- (Rupees forty lakhs only) shall be liable to be registered as a VAT dealer.
(4) Every dealer whose taxable turnover during the period from 1st January 2004 to 31st December 2004 is more than Rs. 40,00,000/-(Rupees forty lakhs only), shall be liable to be regist
(1) The authority prescribed shall issue a registration identification number known as:
(a) Taxpayer Identification Number (TIN) to a dealer registered as VAT dealer;
(b) General Registration Number (CRN) to a dealer registered as TOT dealer.
(2) Every VAT dealer or TOT dealer who is allotted a Taxpayer Identification Number (TIN) or General Registration Number (GRN) shall indicate such number on all returns, forms, tax invoices or any other documents used for the purposes of the Act.
(1) Any VAT dealer or TOT dealer registered under Section 17 of the Act shall apply for cancellation or amendment of registration, in such circumstances as may be prescribed.
(2) The authority prescribed may, forgood and sufficient reasons cancel, modify or amend any certificate of registration issued by him:
Provided that no order shall be passed under this sub-section without giving the dealer a reasonable opportunity of being heard.
(1) Every dealer registered under Section 17 of the Act, shall submit such return or returns, along with proof of payment of tax in such manner, within such time, and to such authority as may be prescribed.
(2) If a return has been filed within the prescribed time and the return so filed is found to be in order, it shall be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return.
(3)
(a) Without prejudice to the powers of the authority prescribed, under sub-section (3) of Section 21, every return shall be subject to scrutiny to verify the correctness of calculation, application of correct rate of tax and input tax credit claimed therein and full payment of tax payable for such tax period,
(1) WhereaVATdealeror TOT dealerfalls to file a return in respect of any tax period within the prescribed time, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed
(2) If a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, subsequent to the prescribed time the assessment made under sub-section (1) may be withdrawn without prejudice to any interest or penalty leviable.
(3) Where the authority prescribed is not satisfied with a return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, he shall assess to the best of his judgment within four years of due date of the return or within fouryears of the date of filing of the return whichever is later.
(4) The authorit
(1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed.
(2) If any dealer fails to pay the tax due on the basis of return submitted by him or falls to pay any tax or penalty levied or any other amount due under the Act, within the time prescribed or specified there for, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one per cent per month for the period of delay from such prescribed or specified date for its payment. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.
(3) In the case of a dealer executing works contract for Government or local authority, a tax at
(1) Where any dealer doing business in respect of which tax is payable under the Act, is dead, the Executor, Administrator, Successor-in-title or other legal representative of the deceased dealer shall, in respect of such business, be liable to submit the returns due under the Act and to assessment under Section 21 and to pay out of the estate of the deceased dealer, the tax, interest and any penalty assessed or levied as payable by the deceased dealer.
(2) The provision relating to appeals and revisions shall be applicable to assessment made under sub-section (1) as if the Executor, Administrator, Successor-in-title or other legal representative were himself the dealer.
(3) The provisions of sub-sections (1) and (2) shall apply mutatis mutandis to a partnership firm of which the managing partners have died.
(1) Where any firm is liable to pay any tax or other amount under the Act, the firm and each of the partners of the firm shall be Jointly and severally liable for such payment.
(2) Where any business carried on by a firm or a Hindu Undivided Family or an Association has been discontinued or dissolved, the authority prescribed shall make an assessment on the taxable turnover and determine the tax payable as if no such discontinuance or dissolution had taken place and all the provisions of the Act including provisions relating to levy of penalty or any other amount payable under any of the provisions of the Act shall apply, to such assessment.
(3) Every person who was at the time of such discontinuance or dissolution, a partner of the firm, or a member of such Hindu Undivided Family or Association and the legal representative of any such p
If the tax assessed or penalty levied or interest payable under the Act, or any amount of tax including deferred tax which is treated as a loan extended by the Government to the dealer and any instalment thereof, are not paid by a dealer within the time specified therefor, the whole of the amount then remaining unpaid may be recovered as if it were an arrear of land revenue.
Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, including deferred tax which is treated as a loan extended by the Government to the dealer, penalty, interest and any other sum payable by a VAT dealer or TOT dealer or any other dealer under the Act, shall be the first charge on the property of the VAT dealer or TOT dealer or any other dealer as the case may be.
(1) Where during the pendency of any proceedings under the Act, or after the completion thereof, any VAT dealer or TOT dealer or any other dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, or any of his assets in favour of any other person such charge or transfer shall be void unless he proves that such charge or transfer was not with the intention to defraud any tax or any other sum payable.
(2)
(a) where, during the pendency of any proceeding for the assessment or reassessment of any tax or turnover taxwhich has escaped assessment, the authority prescribed is of the opinion that for the purpose of protecting the Interests of the revenue it is necessary so to do, may with the previous approval of the Commissioner, by order in writing, attach provi
(1) A Deputy Commissioner shall have the powers of a Collector under the Andhra Pradesh Revenue Recovery Act, 1864 (Act 2 of 1864) for the purpose of recovery of any amount due under the Act.
(2) Subject to the provisions of subsection (3), all Deputy Commercial Tax Officers shall, for the purpose of recovery of any amount due under the Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act, 1839 (Act 7 of 1939) for the sale of property distrained for any amount due under the Act.
(3) Notwithstanding anything contained in the Andhra Pradesh Rent and Revenue Sales Act, 1839 (Act 7 of 1839) the Deputy Commercial Tax officer in the exercise of the powers conferred by sub-section (2) shall be subject to the control and superintendence of the Deputy Commissioner.
(1) The Commissioner or any other authority prescribed may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to such authority) require any person from whom money is due or may become due to the defaulter, or any person who holds or may subsequently hold money for, or on account of the defaulter, to pay to such authority, either fourth with if the money has become due or is so held, within the time specified in the notice but not before the money becomes due or is held, so much of the money as is sufficient to pay the amount due by the defaulter in respect of arrears of tax, interest, penalty or the whole of the money when it is equal to or less than that amount.
(2) The authority prescribed may, at any time, or from time to time, amend or revoke any such notice or extend the time of making any payment
Where ownership of the business of a dealer registered under the Act and liable to pay tax is transferred, any tax or any other amount payable under the Act in respect of such business and remaining unpaid at the time of the transfer, may without prejudice to any action that may be taken for its recovery from the transferor, be recoverable from the transferee as if the transferee were the dealer liable to pay such tax or other amount.
the Act other than an order passed or proceeding recorded by an Additional Commissioner or Joint Commissioner or Deputy Commissioner, may, within thirty days from the date on which the order or proceeding was served on him, appeal to such authority as may be prescribed:
Provided that the Appellate Authority may within a further period of thirty days admit the appeal preferred after a period of thirty days if he is satisfied that the VAT dealer or TOT dealer or any other dealer had sufficient cause for not preferring the appeal within that period:
Provided further that an appeal so preferred shall not be admitted by the appellate authority concerned unless the dealer produces proof of payment of tax admitted to be due, or of such installments as have been granted, and the proof of payment of twelve and half per cent of the difference of
(1) The Commissioner may suo motu call for and examine the record of any order passed or proceeding recorded by any authority, officer or person subordinate to him, under the provisions of the Act, including subsection (2) and if such order or proceeding recorded is prejudicial to the interests of revenue, may make such enquiry, or cause such enquiry to be made and subject to the provisions of the Act, may initiate proceedings to revise, modify or set aside such order or proceeding and may pass such order in reference thereto as he thinks fit.
(2) Powers of the nature referred to in sub-section (1) may also be exercised by the Additional Commissioner, Joint Commissioner, Deputy Commissioner and Assistant Commissioner in the case of orders passed or proceedings recorded by the authorities, officers or persons subordinate to them:
Provide
(1) Any dealer objecting to an order passed or proceeding recorded
(a) by any authority prescribed, on appeal under Section 31, or
(b) by the Additional Commissioner, or Joint Commissioner or Deputy Commissioner under Section 21 or 32 or 38, may appeal to the Appellate Tribunal within sixty days from the date on which the order or proceeding was served on him.
(2) The Appellate Tribunal may within a further period of sixty days admit the appeal preferred after the period of sixty days specified in sub-section (1), if it is satisfied that the dealer had sufficient cause for not preferring the appeal within that period:
Provided that no appeal against the order passed under Section 31 shall be admitted under sub-section (1) or sub-section (2) of thi
(1) Within ninety days from the date on which an order under sub-section (4) of Section 33 was communicated to him, the VAT dealer or TOT dealer or any other dealer or the authority prescribed in this behalf may prefer a petition to the High Court against the order on the ground that the Appellate Tribunal has either decided erroneously, or failed to decide, any question of law: Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.
(2) The petition shall be in the prescribed form, shall be verified in the prescribed manner, and shall, where it is preferred by the dealer,
(3) If the High Court, perusing the petition considers that there is no sufficient ground for interfering, it m
(1) Any VAT dealer or TOT dealer or any other dealer objecting to an order relating to assessment passed by the Commissioner suo-motu under Section 32 or 38 may appeal to the High Court within sixty days from the date on which the order was communicated to him: Provided that the High Court may admit an appeal preferred after the period of sixty days aforesaid, if it satisfied that the dealer had sufficient cause for not preferring the appeal within that period.
(2) The appeal shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by such fee which shall not be less than rupees five hundred but shall not exceed Rupees two thousand only as may be prescribed.
(3) The High Court shall, after giving both parties to the appeal, a reasonable opportunity of being heard, pass such order thereon as it
Every petition, application or appeal preferred to the High Court under Sections 34 or 35 shall be heard by a Bench of not less than two judges, and in respect of such petition, application or appeal, the provisions of S.98 of the Code of Civil Procedure, 1908 (Central Act V of 1908) shall, so far as may be, apply.
Notwithstanding anything contained in Sections 21 and 32 where an assessment, reassessment, rectification in or revision of an assessment is made in respect of a dealer or any person, in pursuance or in consequence of or to give effect to any finding or direction contained in an order under Sections 31,32, 33, 34 and 35 or in an order of any court in a proceeding, otherwise than by way of appeal or revision such assessment, re-assessment, rectification in or revision, of an assessment shall be made within three years from the date of receipt of such order by the prescribed or revising authority as the case may be: Provided that if such appeal, order or order of any court has been subjected to further appeal, either partially or entirely, and if there are orders of stay prohibiting the authority concerned to pass consequential orders, the period of three years shall get extended by the period during which such stay orders were
(1)
(a) A VAT dealer effecting sales falling under sub-section (1) or (3) of S.5 of the Central Sales Tax Act, 1956 and sub-section (6) of S.8 of the Central Sales Tax Act, 1956 in any tax period shall be eligible for refund of tax, if the input tax credit exceeds the amount of tax payable subject to the condition that the exports have been made outside the territory of India. The excess of tax shall be refunded within a period of ninety days on a claim made on a VAT return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder;
(b) In all other cases, the VAT dealer may make a claim for refund of any excess credit available at the end of second year after the commencement of the Act and thereafter in the return to be filed for the month of March every year if registered as a VAT dealer
(1) Where the authority prescribed is required to refund an amount of tax to a VAT dealer or TOT dealer or any other dealer as a result of;
(a) a decision under Section 31; or
(b) a decision of the Appellate Tribunal under Section 33; or
(c) a decision of the High Court under Section 35, such refund shall be made within a period of ninety days from the date of the receipt of the order. Where refund is not made within the stipulated time as mentioned in sub- section (1), the amount of refund shall carry interest at the rate of one percent per month for the period of delay. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.
(1) The Commissioner or the authority prescribed shall have the power to adjust any amount due to be refunded against any tax, penalty and interest outstanding against a VAT dealer or a TOT dealer or any other dealer.
(2) Where an order giving rise to a refund is the subject matter of an appeal or further proceeding, or where any other proceeding is pending, and the authority prescribed is of the opinion that the grant of the refund is likely to adversely affect the revenue, the authority prescribed may, with the previous approval of the Deputy Commissioner, withhold the refund till such time as the Deputy Commissioner may determine.
(3) Where any demand of tax or penalty or both is disputed by a VAT dealer or TOT dealer before any appellate authority or Sales Tax Appellate Tribunal or High Court and the demand" becomes finally due eithe
Every VAT dealer who makes a sale to a person other than a VAT dealer or every TOT dealer or any other dealer whose taxable turnover is not less than Rs. 5,00,000/- (Rupees five lakhs only) in a year, shall issue a bill or cash memorandum in such form and with such details of tax collected as may be prescribed, for every sale involving an amount not less than Rs. 100/- (Rupees one hundred only):
Provided that every VAT dealer or TOT dealer or any other dealer shall issue a sale bill in the proforma prescribed, irrespective of the amount of sale, when demanded by the buyer.
(1) Every VAT dealer or TOT dealer shall maintain the documents and records specified in the rules at the place of business so registered in the English language or in any of the languages specified in the Eighth Schedule to the Constitution.
(2) Every person registered under the Act, every dealer liable to get himself registered under the Act, every agent acting on behalf of a resident principal and every other dealer who is required so to do by the authority prescribed by notice served in the prescribed manner, shall keep and maintain a true and correct account promptly in any of the languages mentioned in subsection (1) showing such particulars as may be prescribed; and different particulars may be prescribed for different classes of persons or dealers.
(3) The Commissioner may get the books of accounts maintained by any dealer audite
(1) For the purpose of enforcing compliance of the provisions of the Act, any officer hot below the rank of Deputy Commercial Tax Officer shall have the power of entry, inspection, search and seizure and confiscation and he:
(a) shall have, full and free access to any premises, place, goods, books, record, computer or any electronically stored data at any time during business hours prescribed under the relevant law for the time being in force and where no such hours are prescribed at all reasonable times without any prior notice to any dealer;
(b) may make an extract or copy from " any book, record or computer- stored information to which access is obtained under clause (a);
(c) may seize and confiscate any goods not accounted for and size any books or records that, in his opinion, affords ev
(1) Where the authority prescribed has reason to believe that any goods of a fair market value exceeding Rs. 5,000/- (Rupees five thousand only) have been sold or purchased by a dealer, to or from another dealer or person, as the case may be, for a consideration which is less than fair market price of the goods and that consideration for such sale or purchase as agreed to between the parties has not been truly stated in the invoice or delivery challan or any other document relating thereto, with the object of facilitating the reduction or evasion of the tax payable under the Act, the authority prescribed may, subject to the provisions of this section, initiate proceedings for seizure and the acquisition of such goods.
(2) The powers conferred under subsection (1) shall be exercised by the authority prescribed in respect of goods sold or purchased which are in transit or in the poss
(1) If the Government or the Commissioner considers it necessary that with a view to prevent or check evasion of tax in any place or places in the State, it is necessary so to do, the Government or the Commissioner may, by notification, direct the setting up of a check post or the erection of a barrier, or both, at such place or places as may be notified.
(2) At every check post or barrier mentioned in sub-section (1), or at any other place when so required by any officer empowered by the Government in this behalf, the driver or any other person in charge of goods vehicle or vessel shall stop the vehicle or vessel as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the officer in charge of the check post or barrier, or the officer empowered as aforesaid, to examine the contents in the vehicle or vessel and inspect all records relating to the
(1) Where a carrier or bailee, to whom goods are delivered for transmission, before delivery is taken from him, keeps the said goods in any office, shop, godown, vessel, receptacle, vehicle or any other place, any officer not below the rank of Deputy Commercial Tax Officer, shall have power to enter into and search such office, shop, godown, vessel, receptacle, vehicle or other place of business or building or place, and to examine the goods and inspect all records relating to such goods. The carrier or bailee or the person in- charge of the goods and records shall give all facilities for such examination or inspection and shall if so required produce the bill of sale or delivery note or such other document as may be prescribed regarding the goods and give his name and address and the name and address of the carrier or the bailee and the consignee.
Explanation: For the purpose of
Where a vehicle carrying goods, coming from any place outside the State and bound for any other place outside the State, pass through the State, the driver or other person- in-charge of such vehicle shall obtain in the prescribed manner a transit pass from the officer-in-charge of the first check post or barrier after his entry into the state and deliver it to the officer-in-charge of the last check-post or barrier before his exit from the State, failing which it shall be presumed that the goods carried thereby have been sold within the State by the owner or person-in- charge of the vehicle and accordingly the tax shall be assessed and penalty, if any shall be levied in accordance with the provisions of the Act:
Provided that where the goods carried by such vehicle are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the burden o
The owner or the person in charge of goods vehicle or vessel shall carry with him:-
(a) bill of sale or tax invoice or delivery note;
(b) log book or goods vehicle record or trip sheet; and
(c) such other documents as may be prescribed, relating to the goods under transport and containing such particulars as may be prescribed and shall submit to the Commercial Tax Officer, having jurisdiction over the area in which the goods are delivered, the documents aforesaid or copies thereof within such time as may be prescribed.
(2) Any dealer who fails to apply for registration as required under Section 17 before the end of month subsequent to the month in which the obligation arose shall be liable to pay penalty of 25% of the amount of tax due prior to the date of the registration by the Registering Authority. There shall be no eligibility for input tax credit for sales made prior to the date from which the registration is effected.
(3) Any dealer who fails to notify any change in the circumstances as required under the provision of the Act or the Rules made thereunder, or who fails to apply for cancellation of registration as required under Section 19 shall be liable to a penalty of Rs.2,000/- (Rupees Two thousand only) for each offence:
Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable oppor
(1) Any VAT dealer, who fails to file a return where no tax is due, by the end of the month in which it was due, shall be liable to pay a penalty of Rs. 2,500/- (Rupees two thousand five hundred only).
(2) Any dealer registered under subsection (7) of Section 17 who fails to file a return where no tax is due shall be liable to pay a penalty of Rs. 500/- (Rupees five hundred only).
(3) Where a dealer files a return, after the last day of the month in which it is due, he shall be liable to pay a penalty of fifteen percent of the tax due: Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonably opportunity of being heard.
(1) Where a dealer who fails to pay tax due on the basis of the return submitted by him by the last day of the month in which it is due, he shall be liable to pay tax and a penalty of ten percent of the amount of tax due:
Provided that before levying penalty the authority prescribed shall give the dealer a reasonable opportunity of being heard.
(2) If a dealer pays the tax, penalty and interest under sub-section (1) and subsequently it is found that the tax is not due. then such tax, penalty and interest shall be refunded to that dealer.
(1) Where an assessment is made under the provisions of sub-section (1) of Section 21 for the failure to file a return, a penalty of fifty percent of the assessed amount shall be imposed.
(2) Where an assessment has been made under sub-section (1) of Section 21, and the dealer subsequently furnishes a return for the period to which the assessment relates, the authority prescribed may withdraw the assessment but the dealer shall be liable to pay penalty under subsection (3) of Section 50 and interest as applicable.
(1) Where any dealer has under declared tax, and where it has not been established that fraud or willful neglect has been committed and where under declared tax is,-
(i) less than ten percent of the tax, a penalty shall be imposed at ten percent of such under-declared tax,
(ii) more than ten percent of the tax due; a penalty shall be imposed at twenty five percent of such under- declared tax.
(2) Where any dealer, prior to the detection by any authority prescribed, voluntarily declares that tax due for a tax period is under declared and he pays the tax due along with interest, no penalty shall be imposed provided that such declaration is made within the time limit and in the manner prescribed.
(3) Any dealer who has under-declared tax, and where it
Any dealer who is registered under Section 17 who fails to use a TIN or GRN or misuses a TIN or GRN contrary to the requirements of the Act or rules made thereunder, shall be liable to pay a penalty of Rs. 1,000/- (Rupees one thousand only) for each offence:
(1) Any VAT dealer, who fails to issue a tax invoice or an invoice or a bill or cash memorandum as required by Sections 14 and 41 shall be liable to pay a penalty of Rs. 5000/- (Rupees five thousand only) or 100% of the tax whichever is lower, for each offence.
(2) Any VAT dealer, who issues a false tax invoice or receives and uses a tax invoice, knowing it to be false, shall be liable to pay a penalty of 200% of tax shown on the false invoice.
(3) Any TOT dealer or any other dealer who fails to issue a bill or cash memorandum as required by Section 41 shall be liable to pay a penalty of Rs.250/- (Rupees two hundred and fifty only).
Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable opportunity of being heard.
Any VAT dealer or TOT dealer who fails to maintain proper records in accordance with the provisions of the Act, is liable to pay a penalty at the rate of Rs. 5,000/- (Rupees five thousand only) for each subsequent offence committed after a warning is issued in writing for the first offence, without prejudice to the payment, of tax, penalty and interest if any due under the provisions of the Act:
Provided that before imposing such penalty the authority shall give the dealer areasonable opportunity of being heard.
(1) No dealer shall collect any amount by way of tax at a rate or rates exceeding the rate or rates at which he is liable to pay tax under the provisions of the Act.
(2) No person, other than a dealer, shall collect on the sale or purchase of any goods any sum by way of tax from any other person and no dealer shall collect any amount by way of tax at a rate or rates exceeding the rate or rates at which he is liable to pay tax under the provisions of the Act.
(3) Nothing in sub-section (2) shall apply to a person where he is required to collect separately any amount of tax under the provisions of any other law for the time being in force.
(4) If any person collects tax in contravention of the provisions of subsection (1) or (2) any sum so collected shall be forfeited either wholly or partly to
Any dealer or person who fails to comply with the requirements under Sections 14. 16, 17, 21, 29, 42, 43 and 64 or any other provisions of the Act shall on conviction be punishable with imprisonment for a term which may extend to three months or with fine or with both.
Any dealer who obstructs the authority prescribed in the performance of his duties under the Act shall on conviction be punishable with imprisonment for a term which shall not be less than one month but which may extend to six months and with fine.
(1) Where an offence under the Act has been committed by a Company, every person who, at the time the offence was committed, was in charge of, arid was responsible to the Company for the conduct of the business of the Company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that, nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under the Act has been committed by a Company, and it is proved that the offence has been committed with the consent or connivance of, or is attribu
(1) The authority prescribed may accept, from any dealer who has committed an offence under the Act by way of composition of such offence: -
(a) where the offence consists of the evasion of tax, in addition to such tax, a sum of money equal to the amount of tax subj ect to a minimum of Rs. 3,000/- (Rupees three thousand only) and
(b) in other cases a sum of money not exceeding Rs. 3,000/- (Rupees three thousand only).
(2) Any order passed or proceeding recorded by the authority prescribed under sub-section (1) shall be final and no appeal or application for revision shall lie therefrom.
(1) No Court other than the Court of a Magistrate of the first class shall take cognizance of, or try, an offence under the Act.
(2) No prosecution for any offence under the Act shall be instituted except with the written consent of the Commissioner.
(1) An authority prescribed or an appellate or revising authority or an inspecting authority or any officer of the Commercial Taxes Department not lower in rank than an Assistant Commercial Officer shall, for the purposes of the Act, have all the powers:-
(a) to summoning and enforcing the attendance of any person and examining him on oath or affirmation; and
(b) compelling the production of any document.
(2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summon is issued either to attend to give evidence, or produce accounts, registers, records or other documents at a certain place and time intentionally omits or fails to attend or produce accounts, registers, records or other documents at such place or time the authority or officer
(1) Any authority prescribed or appellate or revision authority may by writing, require any person or authority to furnish such information, particulars or records available with the person or authority as will be useful or relevant to any proceeding under the Act.
(2) The person or authority from whom such information, particulars or records are required under sub-section (1) shall furnish, within a reasonable time, the information particulars or records available.
Save as otherwise expressly provided in the Act, no Court shall entertain any suit, or other proceeding to set aside or modify, or question the validity of any assessment, order or decision made or passed by any officer or authority under the Act or any rules made there under, or in respect of any other matter falling within its scope.
Any person who is entitled to appear before any authority other than the High Court in connection with any proceedings under the Act, may be represented before such authority.
(a) by his relative or a person regularly employed by him, if such relative of person is duly authorized by him in writing in this behalf; or
(b) by a legal practitioner; or
(c) by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949; or
(d) by a Cost Accountant within the meaning of the Cost and Works Accountant Act, 1959.
(e) Subject to such conditions as may be laid down by the rules in that regard by a person who was enrolled as a Sales Tax Practitioner by a such authority on payment of such fees and
(1) The Commissioner may constitute a State level Authority for Clarification and Advance Rulings comprising of 3 officers not below the rank of Joint Commissioner to clarify, in the manner prescribed any aspect of the implementation of the Act.
(2) No application shall be entertained where the question raised in the application :-
(i) is already pending before any officer or authority of the Department or Appellate Tribunal or any Court;
(ii) relates to a transaction or issue which is designed apparently for the avoidance of tax: Provided that no application shall be rejected under this sub- section unless an opportunity has been given to the applicant of being heard and where the application is rejected, reasons for such rejections shall be recorded in the order
&
(1) Where a contract or an agreement was concluded between two or more parties before the commencement of the Act and no provision for tax under the Act was made in the contract, the selling dealer shall pay tax due on any sale liable to tax made under such contract after the commencement of the Act.
(2) Where a contract is concluded after the commencement of the Act, and no provision relating to tax was made in the contract, the contract price shall be deemed to include tax due under the Act and the selling dealer shall account for the tax due.
(1) Notwithstanding anything contained in the Act, any industrial unit availing a tax holiday or tax exemption on the date of commencement of the Act shall be treated as a unit availing tax deferment.
(2) The unit availing tax deferment as specified in sub-section (1) shall be eligible to issue tax invoices and to claim input tax credit subject to provisions of Section 13 of the Act.
(3) The period of eligibility, the method of debiting eligibility amount, the repayment and any other benefits for all units availing tax deferment shall be in the manner prescribed.
(1) No suit, prosecution or other proceeding shall lie against any officer or servant of the Government for any act done or purporting to be done under the Act without the previous from the date of the act complained of.
(2) No officer or servant of the Government shall be liable in respect of any such act in any civil or criminal proceeding if the act was done in good faith in the course of the execution of duties imposed on him or the discharge of functions entrusted to him by or under the Act.
Every scheduled bank including any branch of such bank or any banking institution in the State shall, at the request of the assessing authority concerned, submit in each month a return in the prescribed form, of all bills relating to goods discounted, cleared or negotiated and the payment and receipts relatable to the sale or purchase of goods transacted by or through it during the preceding month, in such manner and within such period as may be prescribed.
No assessment made, penalty or compounding fee levied or other order passed by any officer or authority under the Act, shall be set aside merely on account of any defect or irregularity in the procedure relating thereto, unless it appears that such defect or irregularity has in fact occasioned material hardship or failure of justice.
The amount of turnover for any tax period or for any calendar quarter shall be rounded off to the nearest multiple of Rs. 10/- (Rupees ten only), but is Rs.5/- (Rupees five only) or more, the amount shall be increased to the next higher amount which is a multiple of Rs. 10/- (Rupees ten only) and if such amount is less than Rs.5/- (Rupees five only), the amount shall be reduced to the next lower amount which is a multiple of Rs. 10/ - (Rupees ten only); and the amount so rounded off shall be deemed to be the turnover of the dealer for the purposes of the Act.
The amount of tax, input tax, output tax, net tax, interest, penalty, or any other sum and the amount of refund due under the provisions of the Act, shall be rounded off to the nearest ten rupees and for this purpose, if such amount is five rupees or more it shall be increased to the next ten rupees and if such amount is less than five rupees, it shall be ignored.
The powers conferred by the Act and the rules made thereunder on any of the officers appointed under Section 3-A may also be exercised by any of the officers superior to the officers so empowered, subject to any instructions issued by the Commissioner in this regard.
(1) If any difficulty arises in giving effect to the provisions of the Act in consequence of the transition to the said provisions from the corresponding provisions of the Act in force immediately before the commencement of the Act, the Government may, by order in the Andhra Pradesh Gazette, make such provisions as appear to them to be necessary or expedient for removing the difficulty.
(2) If any difficulty arises in giving effect to the provisions of the Act (otherwise than in relation to the transition from the provisions of the corresponding Acts in force before the commencement of the Act), the Government may, by order make such provisions, not inconsistent with the purposes of the Act, as appear to it to be necessary or expedient for removing the difficulty.
The Commissioner may, from time to time, issue such orders, instructions and directions not inconsistent with the provisions of the Act or the rules made there under to his subordinate officers as he may deem fit, for the proper administration of the Act and such officers and all other persons employed in the enforcement of the Act, shall comply with such orders, instructions and directions. Provided that no such orders, instructions or directions shall be such as to interfere with the discretion of any appellate authority in exercise of its appellate functions.
(1) The Government may by notification, make rules to carry out the purposes of the Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for.-
(a) all matters expressly required or allowed by the Act to be prescribed;
(b) the manner of determination of the amount payable by the dealer in respect of:-
(i) any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(ii) any delivery of goods on hire purchase or any system of payment by instalments;
(iii) any transfer of the right to use any goods for any purpose (whether or not for a specified
(1) The Government may, by notification, alter, add to or cancel any of the Schedules.
(2) Where a notification has been issued under sub-section (1) there shall, unless the notification is in the meantime rescinded, be introduced in the Legislative Assembly, as soon as may be, but in any case during the next session of the Legislative Assembly following the date of the issue of the notification, a Bill on behalf of the Government, to give effect to the alteration, addition or cancellation, as the case may be, of the Schedule specified in the notification, and the notification shall cease to have effect when such Bill becomes law, whether with or without modifications, but without prejudice to the validity of anything previously done thereunder: Provided that if the notification under sub-section (1) is issued when the Legislative Assembly is in session, such a Bill shall be introd
(1) The Andhra Pradesh General Sales Tax Act, 1957 (A.P.Act VI of 1957) is hereby repealed.
Provided that such repeal shall not affect the previous operation of the said Act or section or any right, title, obligation or liability already acquired, accrued or incurred thereunder, and subject thereto, anything done or any action taken (including any appointment, notification, notice, order, rule, form, regulation, certificate, licence or permit) in the exercise of any power conferred by or under the said Act or section shall be deemed to have been done or taken in the exercise of the powers conferred by or under the Act, as if the Act was in force on the date on which such thing was done or action was taken; and all arrears of tax and other amounts due at the commencement of the Act may be recovered as if they had accrued under this Act.
The Andhra Pradesh Value Added Tax Ordinance, 2005 is hereby repealed.
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