Tamil Nadu Value Added Tax Rules, 2007
These rules may be called the Tamil Nadu Value Added Tax Rules, 2007.
They shall come into force on the 1st day of January, 2007.
In these rules, unless there is anything repugnant to the subject or context-
(i) "Act" means the Tamil Nadu Value Added Tax Act, 2006;
(ii) "departmental representative" means an officer appointed by the State Government to receive on behalf of the assessing authority, notices issued by the Appellate Assistant Commissioner or Appellate Deputy Commissioner and to appear, act and plead on behalf of the assessing authority before the Appellate Assistant Commissioner or Appellate Deputy Commissioner, as the case may be;
(iii) "Form" means a form appended to these rules;
(iv) "Government Treasury" means a treasury or sub-treasury of the State Government and includes State Bank of India or any other bank authorised by the Government from time to time;
(1) Every dealer whose total turnover in respect of purchase and sale within the State in any year is not less than ten lakhs of rupees and every other dealer whose total turnover in a year is not less than five lakhs of rupees shall submit an application for registration under this Act to the registering authority in whose jurisdiction his principal place of business is situated, within thirty days from the date of commencement of the Act.
(2) Any other dealer or person intending to commence business may, if he so desires, submit an application for registration under the Act to the registering authority in whose jurisdiction his principal place of business is to be situated:
Provided that if such dealer reaches a total turnover, as mentioned in sub-rule (1), he shall submit an application for registration within thirty days on reaching
(1) (a) The registering authority shall, on receipt of application in Form A, acknowledge its receipt. The said authority on satisfying itself that the application is in order shall assign Taxpayer Identification Number and issue certificate of registration in Form D within thirty days from the date of receipt of the application.
(b) If for any defect in the application, the certificate of registration cannot be issued, the registering authority shall issue a notice to the applicant to show cause against rejection of the application within the period specified above.
(c) If the certificate of registration is not issued by the registering authority within thirty days from the date of receipt of the application or if no notice is issued by the said authority within the said period, the applicant shall be deemed to have been duly regis
(1) Every registered dealer under the Act shall maintain true, correct and complete account in ink or electronic records in any of the languages specified in the Eighth Schedule to the Constitution of India or in English showing the goods produced or manufactured, bought, sold, delivered or supplied.
(2) (a) Every dealer shall maintain accounts showing purchases and sales.
(b) The purchase account maintained by registered dealer shall contain the following particulars, namely -
(i) Invoice No. and date with sellers Taxpayer Identification Number;
(ii) Description of the goods purchased;
(iii) Value of purchase of exempted goods;
(iv) Value of the goods pur
(1) (a) Every registered dealer liable to pay tax under the Act, other than a dealer who opted to pay tax under sub-section (4) of section 3 or section 6 or section 8 including agent of a non-resident dealer and casual trader, shall file return for each month in Form I on or before 20th of the succeeding month, to the assessing authority in whose jurisdiction his principal place of business or head office is situated. Such return shall be accompanied by proof of payment of tax.
(b) Every registered dealer who is liable to pay tax under sub-section (5) of section 3 shall file a return in Form J on or before 20th of the succeeding month to the assessing authority in whose jurisdiction his principal place of business or head office is situated. Such return shall be accompanied by proof of payment of tax:
Provided that a registered deal
(1) In pursuance of Explanation II to clause (41) of section 2, the amounts specified in the following clauses shall not, subject to the conditions specified therein, be included in the turnover of a dealer -
(a) all amounts refunded to purchasers in respect of goods returned by them to the dealer, provided the accounts show the date on which the goods were returned and the date on which and the amount for which refund was made or credit was allowed to the purchaser.
(b) all amounts received from the sellers in respect of goods returned to them by the dealer, provided the accounts show the date on which the goods were returned and the date on which and the amount for which refund was received or advice of credit was received from the seller.
(c) all amounts charged separately as interest on th
(1) Any person who makes a deduction under section 13, shall deposit the sum so deducted to the assessing authority having jurisdiction over the person or to any other authority authorised by the Deputy Commissioner to receive such payment, on or before the 20th day of the succeeding month in which the deduction was made with a statement in Form R.
(2) The certificate that a dealer has no liability to pay or has paid the tax under section 5, referred to in clause (b) of the first proviso to sub-section (1) of section 13 shall be in Form S.
(3) The certificate of deduction of tax referred to in sub-section (3) of section 13 shall be in Form T.
(4) The notice in writing, indicating the amount payable under the Act, referred to in sub-section (5) of section 45 shall be in Form U.
(1) The input tax credit that can be deducted from the output tax payable for any month or year shall be calculated by using the formula (A + B) -(C + D)
Where,
A = Input tax credit carried forward from the previous month or year
B = Input tax credit accrued during the month or year
C = Input tax credit reversed during the month or year
D = Input tax credit refunded during the month or year
(2) Every registered dealer who claims input tax credit under sub-section (1) of section 19 shall, produce the original tax invoice, in support of his claim of the input tax credit, containing the following details, namely:
(i) A
(1) The assessing authority shall issue refund of amount specified in Form P within ninety days from the date of service of the said Form, failing which the assessing authority shall also pay the interest at the rate prescribed under the Act along with such refund amount.
(2) The dealer who claims refund due to sale effected by him under sub-section (1) of section 18 shall file an application in Form W to the assessing authority along with copies of invoices or bills of related purchases within one hundred and eighty days from the date of accrual of such claim. The assessing authority after verification of the correctness of the claim, shall issue refund within ninety days from the date of the receipt of the application in Form W.
(1) If the refund amount due to a dealer is not received by him within the period specified in sub-section (5) of section 42, he shall make an application to the assessing authority claiming the interest payable by the Government.
(2) (a) On receipt of the application, the assessing authority shall, after such enquiry as it may consider necessary for the purpose of verification of the eligibility of the dealer and the correctness of the claim made, issue a notice for the payment of the interest.
(b) If on such enquiry, the assessing authority finds that the claim is not in order or that the amount of interest claimed is not admissible either in full or in part, it shall, after giving the dealer an opportunity of being heard, and for reasons to be recorded in writing, reject the claim or disallow such part of the claim.
(1) Of the two members of the Appellate Tribunal (other than its Chairman), one shall be an officer of the Commercial Taxes Department of the State Government not below the rank of Joint Commissioner. The other member shall be -
(a) an officer of the Indian Audit and Accounts Service; or
(b) an officer of the Income-Tax Department not below the rank of Joint Commissioner of Income Tax; or
(c) an officer of the above cadre in Central Excise Department or Customs Department or Railway Accounts Department or Defence Accounts Department; or
(d) an outsider who is -
(i) a member of the Institute of Chartered Accountant of India, and possess practical experience of not less than five years as a Chartered Accoun
(1) Every appeal preferred under sections 51 and 52 shall be in Form X and shall be verified in the manner specified therein. It shall be in duplicate and shall be accompanied by two copies of the order appealed against one of which shall be a certified copy:
Provided that the appellate authority may entertain the appeal, if it is satisfied that the appellant has sufficient cause for not furnishing the copies of the order appealed against
(2) The appeal shall also be accompanied by proof of payment of fee of rupees one hundred.
(3) If the Appellate Authority finds any defect or omission in the appeal, it shall return the appeal for rectification of the defect or for supplying the omission and re-presentation within ten days from the date of receipt by the appellant:
(1) Officers of the Commercial Taxes Department not below the rank of an Assistant Commercial Tax Officer shall be the officer prescribed for the purposes of sections 65, 66, 67, 68 and 69.
Explanation.-For the purpose of this rule, the expression said officer shall mean the officer prescribed in sub-rule (1) or the officer-in-charge of the check-post or barrier.
(2) The driver or any other person in charge of the goods vehicle or boat or the consignor or consignee shall furnish adequate security, as the said officer may direct. The security bond shall be in Form II.
(3) For purposes of sub-section (3) of section 64 and sub-section (5) of section 67, the following shall be the documents to be sent along with the goods, namely:
(a) A bill of sale or
the appearance of any person shall be in Form PP.
(2) Where a person to whom a notice under section 45 is served objects to it by a statement under sub-section (5) of section 45, such statement shall be in Form QQ.
(3) A person other than the assessee or his agent or representative who appears pursuant to a summon under section 81 to give oral or documentary evidence shall be paid traveling allowance and bata at such rates as may be fixed by the State Government from time to time.
(4) The Government may, in the public interest or to mitigate hardship to the trade remit the whole or any part of the tax or penalty or fee payable in respect of any period by any dealer under section 31 subject to the condition that in respect of remission of tax the dealer had not collected tax on the turnover in
(1) The person specified in clauses (a) and (c) of section 78 appearing on behalf of a dealer or other person in any proceedings before any authority under the Act other than the High Court shall file before such authority an authorisation given by the dealer or such person in Form SS.
(2) (a) An Accountant appearing under clause (c) of section 78 shall be a Chartered Accountant as defined in the Chartered Accountants Act, 1949 (Central Act XXXVIII of 1949) or Cost Accountant as defined in the Cost and Works Accountants Act, 1959 (Central Act 23 of 1959).
(b) No person shall be eligible to appear as a Value Added Tax Practitioner under clause (c) of section 78 unless his name has been included in the list in Form TT referred to in sub-rule (2) (v) and unless he has, -
(i) passed any one of
An authorisation given under rule 17 or an appointment of a legal practitioner by a dealer or other person to represent him in any proceedings before any authority under the Act, other than the High Court shall be valid for the purpose of appearance before such authority, until it is cancelled in writing:
Provided that if the dealer or other person desires to cancel the appointment of the legal practitioner or the said authorisation in the course of the proceedings before any such authority, he may do so with the consent of the legal practitioner, or the Chartered Accountant, or the Cost Accountant or the Value Added Tax practitioner, so authorised or if such consent is refused, with the permission of the said authority.
(1) The service on a dealer of any notice, summon or order under the Act or these rules may be effected either electronically or manually in any of the following ways, namely: -
(a) by giving or tendering it to such dealer or his manager or agent or the legal practitioner appointed to represent him or to his authorised representative; or
(b) if such dealer or his manager or agent or the legal practitioner appointed to represent him, or his authorised representative is not found, by giving or tendering it to any adult member of his family; or
(c) by sending it to the address of the dealer by registered post; or
(d) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence
Assistant Commercial Tax Officer, Deputy Commercial Tax Officer, Commercial Tax Officer and Assistant Commissioner of the Commercial Taxes Department are the officers prescribed under section 65. When any such officer conducts a search of any office, shop, place of business-cum-residence, godown, vessel, vehicle or any other place of business or any premises or place where he has reason to believe that the dealer keeps or is for the time being keeping any accounts or registers, records or other documents of his business, he shall, as far as may be, follow the procedure prescribed in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974). If on search, such officer finds any accounts, registers, records or other documents which he has reason to believe to relate to any evasion of tax or other fee due from the dealer under the Act, he may, for reasons to be recorded in writing, seize such accounts, registers, records or other documents and shall give the dealer a
Every bank including any branch of bank/or clearing house in the State shall, if so required by an officer, not below the rank of an Assistant Commercial Tax Officer, furnish any such particulars as he may require in respect of the transactions of any dealer with such bank or from such clearing house which during the course of its business handles or transports goods liable to tax under the Act.
(1) The following information in respect of assesses will be published under section 79, namely:-
(a) Names of defaulters of tax with details where the total amount of tax and other dues for one or more years is rupees ten lakhs or more and is not covered by stay granted by the appropriate authorities, and remaining unpaid for more than two months after the due date.
(b) Names of dealers with details who have suppressed their tax liability or have evaded the payment of tax under the Act involving rupees ten lakhs or more for one or more years, detected at a time.
(c) Names of dealers or persons with details on whom a penalty of not less than rupees fifteen lakhs under the Act has been imposed during any year.
(d) Names of dealers or persons with det
The taxes or other amounts due under the Act shall be paid -
(a) by remittance into State Bank of India or any other bank authorised by the Government from time to time; or
(b) by remittance in cash into a Government Treasury or to the assessing authority or other officer empowered to make the demand or authorised to make the collection; or
(c) by means of a crossed cheque in favour of the assessing authority drawn on any one of the banks situated within the city / town where office of the assessing authority is situated; or
(d) by means of a crossed demand draft or a bankers cheque drawn in favour of the assessing authority; or
6[(dd) by means of electronic payment through the website of the Commercial T
Whoever commits a breach of any of these rules shall, on conviction by a Magistrate, be punishable with fine, which may extend to one thousand rupees.
(1) Where a form has been prescribed by these rules for the keeping or maintaining of any accounts or for the submission of any return, only the appropriate form printed under the authority of the State Government shall be used for the purpose:
Provided that the Government may by a general order at any time, permit the dealers to use privately printed copies of forms.
(2) The forms prescribed in the Rules may be used with such variation in matters of details, as may be directed by the Commissioner of Commercial Taxes from time to time.
Notwithstanding anything contained in these rules, a dealer liable to pay tax, fee or other amount due under the Tamil Nadu General Sales Tax Act, 1959, for the period prior to the date of commencement of the Act, shall submit the returns due for that period, in accordance with the provision of the Tamil Nadu General Sales Tax Rules, 1959.
1. Substituted vide notification no. G.O.Ms.No.43, dated 7.2.2007 for the words: "within fifteen days of the commencement of the Act".
4. Inserted vide Order No. G.O. Ms. No.118 dated 03.12.2008.
5. Inserted vide Order No. G.O. Ms. No.118 dated 03.12.2008.
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