Please Help: Vat
Posted Date : 26-Nov-2011 , 12:05:13 pm | Posted By: Mitesh Gogri
Category :
VAT | Answers :
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Dear frnds one Query is raised plz provide immediate solution:
VAT RATE 12.5% at time when invoice was issued for Rs 1000 on 10/5/2011. VAT RATE changed to 10% on 10/6/2011.There was price revision due to which supplementary invoice was issued of Rs 150 on 12/6/2011 in addition to original Invoice. Now what rate of VAT should be charged on this new supplementary invoice??? |
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Answers:
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 Answer by: Ashish Karundia |
| Dear Mitesh,
Under the VAT regime, a dealer is liable to pay sales tax/VAT on the taxable turnover (i.e. gross turnover less certain deductions - Refer Section 9(3) of Jharkhand VAT Act). Further, it may be noted that as per section 2 (xxv) (i) of Jharkhand VAT Act,GROSS TURNOVER means for the purposes of levy of sales tax, in respect of sale of goods, AGGREGATE OF SALE PRICE RECEIVED AND RECEIVABLE by a dealer.
In other words, it can be said that the dealer is liable to pay tax AT THE RATE APPLICABLE AT THE TIME OF SALE OF GOODS on AGGREGATE OF SALE PRICE RECEIVED AND RECEIVABLE.
Therefore, tax should be charged at the rate of 12% on the amount raised (i.e. Rs. 150) on 12/6/2011 and not at the rate of 10% as the rate is changed subsequent to the sale of goods.
Hope the above suffice.
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