VAT Works Contracts

VAT ON
WORKS CONTRACT
IN ANDHRA PRADESH
Statutory Provisions under A.P. VAT Act, 2005
and A.P. VAT Rules, 2005)
Sl.
No.
Subject
Sections
Rules
Forms
2 (45)
17(2) to
17(6)
4 to 14
VAT 100
VAT 100A
VAT 100B
Turnover Tax dealer
17(7),
17(8)
4(2), 4(3)
6(2), 6(3),
15(1) to (8)
TOT 001
TOT 001A
TOT 001B
3.
Charge to tax
VAT dealer works contract
(Without Composition)
4(7)(a),
11
17(1)
4.
Works Contract for the

Government or Local
Authority (Under
Composition)
4(7)(b),
4(7)(e)
17(2)
VAT 250,
VAT 250A
5.
Works Contracts (Other than

for State Government or
Local Authority) under
composition
4(7)(c);
4(7)(e)
17(3);
VAT 250,
VAT 250A
1.
Definition
2.
Registration
VAT dealer
1101
Andhra Pradesh Works Contract
1102
Sl.
No.
Subject
Sections
Rules
Forms
6.
Apartment Builders,
Developers under
Composition
4(7)(d),
4(7)(e)
17(4)
VAT 250,
VAT 250A
7.
Turnover Tax dealer

Works Contracts
4(2),
4(7)(f), 10
17(5)
8.
Input tax credit
13
20
9.
Returns and Self

Assesssments
20
23
VAT 200,
VAT 200A,
VAT 200B,
VAT 200E,
VAT 200F
10.
Due date for payment of tax
22
24
VAT 200,
TOT 007
11.
Tax Deduction at source

(TDS)
22(4)
17(3)(i),
18(1)(b)
Form 501A
12.
Tax Collection at source

(TCS)
22(3)
17(2)(d),
17(2)(h)
Form 501
13.
Assessment
21
25
VAT 204,
VAT 305,
VAT 305A,
TOT 010,
TOT 025,
TOT 025A
14.
Records
42
31
15.
Offences and Penalties
49 to 58
16.
Tax invoice / invoice
14, 41
26, 27
17.
Ongoing Contracts
68
1103
VAT ON
WORKS CONTRACT
IN ANDHRA PRADESH
(Statutory Provisions under A.P. VAT
Act, 2005 and A.P. VAT Rules, 2005)
DEFINITION
[Section 2 (45)]
Section 2(45) : Works Contract includes any agreement for carrying
out for cash or for deferred payment or for any other valuable consideration,
the building construction, manufacture, processing, fabrication, erection,
installation, laying, fitting out, improvement, modification, repair or
commissioning of any movable or immovable property;
REGISTRATION
VAT DEALER
[Section 17 (2) to (6); Rules 4 to 14; Form VAT 100]
Section 17 (2) Every dealer commencing business and whose
estimated taxable turnover for twelve consecutive months is more than
Rs. 40,00,000/- (Rupees Forty lakhs 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
1103
1104
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 registered as a VAT dealer.
(5) Notwithstanding anything contained in sub-sections (2), (3) and
(4), the following classes of dealers shall be liable to be registered as VAT
dealers irrespective of their taxable turnover namely :
(a)
every dealer importing goods in the course of business from

outside the territory of India;
(b)
every dealer registered or liable to be registered under the Central

Sales Tax Act 1956, or any dealer making purchases or sales in
the course of inter-State trade or commerce or dispatches any
goods to a place outside the State otherwise than by way of sale;
(c)
every dealer residing outside the State but carrying on business

within the State and not having any permanent place of business;
(d)
every dealer liable to pay tax on goods listed in Schedule-VI;
(e)
every commission agent, broker, delcredere agent, auctioneer or

any other mercantile agent by whatever name called, who carries
on the business of buying, selling, supplying or distributing goods
on behalf of any non resident principal;
(f)
every dealer availing sales tax deferment or sales tax holiday;
(g)
every dealer executing any works contract exceeding Rs. 5,00,000/

- (Rupees Five lakhs only) for the Government or local authority
and every dealer opting to pay tax by way of composition on
works contract;
[(h) every dealer liable to pay tax under sub-section (9) of section 4 of
the Act].
(6)
(a) Any dealer effecting sale of goods liable to tax under the Act
and who is not otherwise liable to register may also opt for registration as a
VAT dealer and such registration shall be subject to such conditions as may
be prescribed;
1.
Added by Act No. 10 of 2006, dt. 04-01-2006, w.e.f. 01-12-2005.

(b)
1105
any dealer intending to effect sale of goods liable to tax under the
Act, and who is not otherwise liable to register, may also opt for
registration as a VAT dealer and such registration shall be subject
to such conditions as may be prescribed.
Rule 4. Procedure for Registration. (1) Every dealer liable or

who opts to be registered under sub-sections (2) to (6) of section 17 shall submit
an application for VAT registration in form VAT 100 to the authority
prescribed.
(2)
Every dealer not registered or not liable to be registered for
VAT but liable to be registered under sub-section (7) of section 17 shall submit
an application for TOT registration in form TOT 001 to the authority
prescribed.
(3)
Every dealer registered under the Andhra Pradesh General Sales
Tax Act, 1957 whose taxable turnover exceeds rupees five lakhs for the period
from the 1st day of January 2004 to the 31st day of December, 2004, who is
neither required to be registered for VAT nor opted to be registered for VAT
shall be deemed to be registered under sub-section (8) of section 17.
(4)
Every dealer who is allotted a Tax payer Identification Number
(TIN) under Rule 28 of Andhra Pradesh General Sales Tax Rules, 1957 as on
31st March, 2005 shall be deemed to be registered as VAT dealer if he is required
to register as a VAT dealer under the provisions of the Act.
(5)
Where a dealer has more than one place of business within the
State, he shall make a single application in respect of all such places specifying
therein, one of such places as place of business for the purpose of registration
and submit it to the authority prescribed.
(6)
Every dealer required to be registered under clause (c) of subsection (5) of section 17 shall authorise in writing on Form VAT 129 a person
residing in the State who shall be responsible for all the legal obligations of the
dealer under the Act.
Rule 5. Time to apply for Registration. (1) (a) Every dealer

who is required to register under sub-section (2) of section17 shall apply for
registration not later than fifteen days but not earlier than forty five days
prior to the anticipated date of the first taxable sale.
(b)
Every dealer who is required to register under sub-section (3) of

section 17 shall make an application by the 15th of the month
1106
subsequent to the month in which the liability to register for

VAT arose.
(c)
(i)
Every dealer who is required to register under sub-section

(7) of section 17 shall make an application for registration
fifteen days prior to commencement of business, where
his taxable turnover is estimated to exceed Rupees five
lakhs in the next twelve consecutive months.
(ii)
In the case of a dealer who is required to register under

sub-section (7) of section 17, when his taxable turnover for
the preceding twelve months exceeded Rupees five lakhs,
the dealer shall make an application by the fifteenth of the
month subsequent to the month in which the taxable
turnover exceeded Rupees five lakhs.
(2)
Every dealer who is required to register under sub-section (5) of
section 17 shall apply for registration fifteen days prior to the anticipated
date of first taxable sale but not earlier than forty five days prior to the
anticipated date of first taxable sale unless an application is made under subrule (4).
(3)
Any dealer effecting sales of goods liable to tax under this Act
may apply to register under clause (a) of sub-section (6) of section 17 and such
registration shall be subject to the conditions prescribed in Rule 8.
(4)
Any dealer intending to effect sales of goods liable to tax
under the Act may apply to register under clause (b) of sub-section (6) of
section 17 and such registration shall be subject to the conditions prescribed
in Rule 9.
ILLUSTRATION OF TIME TO APPLY FOR REGISTRATION IS GIVEN BELOW:

Rule
Type of registration
Time to apply
Example
1.
17(2)
5(1)(a)
New dealer commencing business
Apply not later than 15 days

but not earlier than 45 days
prior to the anticipated date
of first taxable sale.
Expected date of taxable sale

is 20.7.2005
Time to apply for VAT
registration is between
5.6.2005 and 5.7.2005
2.
17 (3)
5 (1)(b)
Running business (A TOT

dealer or unregistered
dealer).
Apply by the 15 th of the

month subsequent to the
month in which the obligation
/ liability to register for VAT
arose.
Liability to register for VAT

arose on 31.8.2005.
Time to apply for VAT
registration is on or before
15.09.2005.
Review the taxable turnover
for the preceding 3 months
at the end of each month.
3.
17 (4)
4(4)
4.
17 (5)
5(2)
5.
17 (6) (a)
5 (3)
Dealers registered under

APGST Act and allotted
Taxpayer Identification
Numbers.
Dealers liable for VAT
registration irrespective
of taxable turnover.
Apply for registration not

later than 15 days but not
earlier than 45 days prior to
making sales or transactions
requiring VAT registration.
Since it is a voluntary
registration, dealers can
apply when they require VAT
registration.
Deemed registration for VAT

for those dealers who are
allotted Taxpayer Identification Numbers.
Expected date of transaction / first taxable sale
20.8.2005
Time to apply is between
5.7.2005 and 5.8.2005
1107
Existing
business
effecting taxable sales &
having no liability to
register for VAT but
opting to register for VAT.
No need to apply for fresh

VAT registration
Section in
the Act
Sl. No.
6.
17 (6) (b)
5 (4)
7.
17 (7)
5 (1)(c)(i)
8.
17 (7)
5(1)(c)(ii)
New business intending

to effect taxable sales
(start up business) and
applying
for
VAT
registration.
New business who has a
reason to believe that his
taxable turnover in a
period of next twelve
months will exceed Rs.5
lakhs and has no obligation for VAT registration.
Existing business which
is neither registered for
VAT nor for TOT.
9.
17 (8)
4(3)
Dealers registered under

APGST Act 1957 and had
taxable turnover exceeding Rs.5 lakhs but below
Rs.40 lakhs for the period
from 01-01-04 to 31-12-04.
Time to apply
Example
No time limit.
A dealer setting up a factory

and anticipating first taxable
sale after, say, 20 months can
apply any time.
Apply for TOT registration 15

days prior to commencement of business.
Expected date of commencement

of
business:
20.8.2005
Time to apply for TOT
registration is on or before
05.08.2005.
When taxable turnover for

the preceding 12 months
exceeded Rs.5 lakhs, apply
by 15th of the month subsequent to the month in which
the taxable turnover exceeded Rs.5 lakhs
Taxable
turnover
for
preceding
12
months
exceeded Rs.5 lakhs on
31.7.2005-Time to apply for
TOT registration is 15.8.2005.
Review the taxable turnover
for the preceding 12 months
at the end of each month.
Deemed registration for
TOT.
No need to apply for fresh

TOT registration.
Rule
1108
Section in
the Act
Sl. No.
1109
Rule 6. Effective date of Registration. (1) The VAT registration

shall take effect :
(a)
from the first day of the month during which the first taxable
sale is declared to be made in the case of registration under subsection (2) of section 17; or
(b)
from the first day of the month subsequent to the month in which
the requirement to apply for registration arose in the case of
registration under sub-section (3) of section 17; or
(c)
from the date of commencement of the Act in the case of dealers

liable for VAT registration under sub-section (4) of section 17;
(d)
from the first day of the month in which the dealer becomes
liable for registration under sub-section (5) of section 17; or
(e)
in the case of a dealer in business opting for registration as a VAT

dealer under clause (a) of sub-section (6) of section 17 :
(f)
(i)
where the application is made, on or before the 15th of the

month, the effective date will be the 1st day of the month
following the month in which the application was made;
(ii)
where the application is made, after the 15th of the month,

from the 1st day of the month following the month subsequent to the month in which the application was made;
from the 1st day of the month in which the dealer applied for
registration under clause (b) of sub-section (6) of section 17.
(2)
In the case of registration under sub-section (7) of section 17 the
general registration for turnover tax shall take effect :
(a)
from the 1st day of the month during which business commenced
in the case of a dealer starting business and who does not register
for VAT, and who has no liability to register for VAT but whose
estimated taxable turnover is more than Rupees five lakhs for
the following twelve consecutive months;
(b)
from the 1st day of the month subsequent to the month in which
the obligation to apply for general registration arose in the case
of a dealer, whose taxable turnover exceeded Rupees five lakhs in
a period of twelve consecutive months.
(3)
In the case of deemed registration under sub-section (8) of
section 17, the general registration shall take effect from the date of
commencement of the Act.
Sl. No.
1.
Rule
EDR
17(2)
6 (1)(a)
New dealer commencing business.
From the first day of the

month during which the
first taxable sale is
declared to be made.
Example
-
2.
17 (3)
6 (1)(b)
Existing business. (A
TOT dealer or unregistered dealer).

month in which the
liability to apply for
registration arose.
3.
17 (4)
6 (1)(c)
Dealers registered
under APGST Act and
having liability to
register for VAT.
From 01-04-2005.
Declared date of
taxable sale shown is
20.7.2005
Applied for VAT
registration
on
3.7.2005
EDR is 1.7.2005
Liability for registration arose on
31.8.2005
Applied for VAT
registration
on
11.9.2005
EDR is 1.10.2005.
Dealers who are allotted Taxpayer Identification Numbers as
on 31.03.2005 are
deemed to be registered as VAT dealers.
EDR is 01.04.2005.
Section in
the Act
1110
ILLUSTRATIONS FOR EFFECTIVE DATE OF REGISTRATION (EDR) UNDER THIS RULE FOR APPLICATIONS
RECEIVED IN TIME ARE GIVEN BELOW :
Sl. No.
4.
Section in
the Act
Rule
EDR
17 (5)
6 (1)(d)

registration irrespective of taxable turnover.

month in which the dealer
has applied for VAT registration.
Example
-
5.
6.
17 (6) (a)
17(6)(b)
6 (1)(e)
6 (1)(f)
Voluntary registration
of a existing business.

month following the
month in which application for registration is
made after 15th of month.

has applied for registration.
Applied for VAT

registration
on
10.08.2005
EDR is 01.09.05
Applied for VAT

registration
on
30.08.2005
EDR is 01.10.2005.
Dealer setting up business on 20.7.2005.

1111
New business intending to effect taxable

sales (Start up business).

month following the
made on or before the 15th
of the month.
Expected date of
transaction / sale
under the Act is on
20.08.2005
Applied for VAT
registration
on
05.08.2005
EDR is 01.08.2005.
6.
Section in
the Act
Rule
17(6)(b)
6 (1)(f)
EDR
Example
-
8.
9.
17 (7)
17 (7)
17 (8)
6 (2)(a)
6 (2)(b)
6 (3)
New dealer commencing business and estimating his taxable

turnover to exceed Rs.5
lakhs for the following
12 consecutive months
and not having a
liability for VAT registration.

month during which
business commenced.
Existing
business
whose taxable turnover exceeds Rs.5 lakhs
in a period of 12 consecutive months.

month in which the
obligation to apply for
general registration arose.

TOT for existing registered dealers under
APGST Act.
From 01-04-2005.
Applied for VAT

registration
on
03.09.2005
EDR is 01.09.2005.
Business commenced
on 20.08.2005.
EDR is 01.08.2005.
Taxable turnover of
Rs.5 lakhs exceeded
on 31.7.2005.
Liability to apply for
TOT registration i.e.
on or before 15.8.2005
EDR is 01.09.2005.
EDR is 01.04.2005
7.
1112
Sl. No.
Rule 7. Belated application for Registration. (1) In the case of belated application for registration submitted
after the time limit prescribed in Rule 5, registration shall take effect as below :
where the application was made in the month it was due or where it is established by the authority prescribed
in the same month in which it was due, the effective date of registration will be the first of the next month;
(b)
where the application or detection was made in the subsequent month following the month it was due, the
effective date of registration will be first of the month the application or detection was made;
(c)
where the application or detection was made in the months subsequent to those defined in (a) and (b) of this
sub-rule, the effective date of registration will be first of the month in which the application or detection was
made.
Illustrations for effective date of Registration (EDR) under this Rule for belated application are given below :
Sl. No.
1.
Section in
the Act
17(10)
Rule
EDR
7 (1)(a)
Belated application for

registration for new
dealers commencing
business and liable for
(i)
7 (1)(b)
VAT or TOT registration and dealers liable for.
(ii)
i) Date of first taxable sale

shown is 20.07.2005
applied for VAT /
TOT registration on
31.07.2005
EDR is 01.08.2005
(ii) date of taxable sale is
20.7.2005
applied for VAT / TOT
registration
on
16.08.2005
EDR is 01.08.2005
1113
Application /or detection in the month

in which the application is due EDR will
be the first day of the
subsequent month.
Application or detection in the following
month EDR will be
the first day of the
month.
Example
(a)
17(10)
Rule
EDR
Example
7 (1)(c)
VAT registration irrespective of taxable turnover.
7 (1)(a)
Belated application for

registration for VAT or
TOT by existing dealers
exceeding registration
threshold.
(iii) Application
or
detection in the
subsequent months
EDR will be first day
of the month of application or detection.
(i) Application or detection in the month in
which the application was due EDR
will be first day of the
subsequent month.
(ii) Application or detection in the following
month in which application was due EDR
month in which the
application is received.
(iii) Application or detection in the subsequent months EDR
month in which
application or detection was made.
(iii) date of first taxable

sale is 20.7.2005
registration
on
15.10.2005
EDR is 01.10.2005
(i) liability for VAT / TOT
on 31.08.2005
registration
on
25.09.2005
EDR is 01.10.2005
(ii) liability for VAT / TOT
on 31.08.2005
registration
on
10.10.2005
EDR is 01.10.2005
7 (1)(b)
7 (1)(c)
(iii) liability for VAT /TOT

on 31.08.2005
registration
on
19.12.2005
EDR is 01.12.2005
2.
Section in
the Act
1114
Sl. No.
1115
Rule 8. Voluntary Registration. (1) A VAT dealer registered

under clause (a) of sub-section (6) of section 17 shall fulfill the following
requirement namely :
(a)
the dealer shall be making taxable sales;
(b)
the dealer shall have a prominent place of business owned or

leased in his name;
(c)
the dealer shall have a bank account;
(d)
the dealer shall not have any tax arrears outstanding under the
Andhra Pradesh General Sales Tax Act, 1957 or the Central Sales
Tax Act, 1956 or under the Act.
(2)
A VAT dealer registered under clause (a) of sub-section (6) of
section 17 shall :
(a)
maintain the full records and accounts required for VAT;
(b)
file accurate and timely VAT returns and pay any tax due;
(c)
remain registered for 24 months from effective date of registration.
(3)
Where a VAT dealer is registered under clause (a) of subsection (6) of section 17 fails to file timely tax returns and fails to pay any
tax due and his taxable turnover remains under the limits specified in subsections (2) and (3) of section 17, the authority prescribed shall cancel such
registration after giving the VAT dealer the opportunity of being heard.
Rule 9. Start up Business. (1) A dealer intending to set up a

business in taxable goods who does not anticipate making first taxable sale
within the next three months and applying for VAT registration shall be treated
as a start up business.
(2)
The dealer referred to in sub-rule (1) shall make an application on
Form VAT 104 in addition to Form VAT 100 to the authority prescribed.
(3)
The dealer applying for registration as a start-up business under
clause (b) of sub-section (6) of section 17, may apply to be registered only for a
period of twenty four months prior to making taxable sales.
(4)
The dealer registered as a start up business under clause (b) of
sub-section (6) of section 17, may claim a tax credit on each tax return for a
maximum period of twenty four months prior to making taxable sales. The
input tax claimed must be in respect of tax paid on inputs relating to the
prospective taxable business activities. The credit shall be eligible for refund
1116
under the provisions of section 38. The provisions of sub-section (1) (b) of
section 38 shall apply only from the tax period in which the first taxable sale
was made.
(5)
The dealer registered as a start up business under clause (b) of
sub-section (6) of section 17 shall abide by all the requirements and obligations
of a VAT dealer including the proper keeping of books of accounts and regular
filing of returns.
(6)
A dealer shall cease to be registered under the provisions of
clause (b) of sub-section (6) of section 17 and shall become registered under the
provisions of sub-section (1) of section 17, when that dealer makes a taxable
sale in the course of business.
(7)
A dealer shall cease to be registered under the provisions of
clause (b) of sub-section (6) of section 17 at the end of a twenty four months
period from the date of registration if no taxable sale has been made. In such a
case, the registration will be cancelled under the provision of Rule 12.
(8)
The Deputy Commissioner may at his discretion, where there
are reasonable grounds, vary the conditions under sub-rules (3), (4), (6) and
(7) and may grant a further time upto twelve months for making the first
taxable sale and to continue as start up business.
Rule 10. Issue of Certificates. The authority prescribed shall

issue :
(a)
a certificate of VAT registration on Form VAT 105; or
(b)
in the case of a Start-up business, a notice on Form VAT 106 in

addition to Form VAT 105;
(c)
in the case of TOT dealer, a certificate of TOT registration on

Form TOT 003.
Rule 11. Suo-motu registration and refusal to register.

(1) The authority prescribed may register a dealer who, in the opinion of that
authority, is liable to apply for registration as VAT dealer or a TOT dealer as
the case may be, but has failed to do so. The dealer shall be provided with an
opportunity to state his case before registration is effected. A registration
under this sub-rule shall be issued on Form VAT 111 or on Form TOT 005, as
the case may be.
(2)
Where the authority prescribed is not satisfied with the
information furnished by the applicant and has reasons to believe that the
applicant does not meet the requirements for registration as VAT dealer or
1117
TOT dealer he shall provide an opportunity specifying the reasons for refusal
before passing any orders for refusal to issue registration. A notification under
this rule shall be issued on Form VAT 103 or on Form TOT 017, as the case may
be.
Rule 12. Certificate of Registration. (1) The certificate of VAT

registration or TOT registration shall be displayed in a conspicuous place at
the place of business mentioned in such certificate and a copy of such certificate
shall be displayed in a conspicuous place at every other place of business
within the State.
(2)
No certificate of registration issued shall be transferred.
(3)
Where the certificate of registration issued is lost, destroyed,
defaced or mutilated a duplicate of the certificate shall be obtained from the
authority prescribed.
Rule 13. Changes in Registration Details. (1) A dealer

registered under section 17 shall notify the authority prescribed in writing
on Form VAT 112 or on Form TOT 051 as the case may be, within fourteen
days :
(a)
of any change in the name, address, of the place of business or

branches or discontinuation of the business;
(b)
of a change in circumstances of the dealer which leads to cessation

of business;
(c)
of a change in business activities or in the nature of taxable sales

being made or principal commodities traded;
(d)
of any changes in the constitution of the firm;
(e)
of a change in bank account details;
(f)
when a dealer commences or ceases to execute works contract for

State Government or local authorities.
(2)
Where changes in the status of business occur an application
shall be made for fresh registration.
(3)
(a) Where a dealer intends to change his place of business from
the jurisdiction of one authority to the jurisdiction of another authority in the
State, he shall make an application on Form VAT 112 or on Form TOT 051 as
the case may be, with full particulars relating to the change of address and the
reasons for such change, to the authority prescribed;
1118
(b)
the authority prescribed receiving an application on Form

VAT 112 or on Form TOT 051 as the case may be for a change of
place of business shall, on approval of the application, remove
such registration from the existing registration records. The
registration file and the application shall be transferred to the
authority prescribed in whose jurisdiction the proposed new
place of business is sought to be established;
(c)
the authority prescribed receiving the registration file shall add

the details to the records of that authority, and issue a new
certificate of VAT registration, with the existing TIN and in respect
of a TOT dealer, a new General Registration Number shall be
issued wherever necessary;
(d)
the change in a place of business and a change in business activities

shall not in itself, result in cancellation and fresh registration of a
VAT dealer.
Rule 14. Procedure for Cancellation of VAT Registration.

(1) Where a VAT dealer ceases to carry on business, that dealer or his legal
representative shall apply to the authority prescribed for cancellation of
registration within fourteen days of the closure of business.
(2)
Subject to sub-rule (3), a VAT dealer may apply in writing on
Form VAT 121 to have his VAT registration cancelled if :
(a)
with respect to the most recent period of three consecutive

calendar months, the taxable turnover did not exceed Rupees ten
lakhs; and
(b)
the taxable turnover for the previous twelve consecutive calendar

months did not exceed Rupees thirty lakhs.
(3)
In the case of a VAT dealer making taxable sales, who is registered
under clause (a) of sub-section (6) of section 17, an application under sub-rule
(2) shall only be made after the expiration of twenty four months from the
date of registration.
(4)
Every VAT dealer whose registration is cancelled under this rule
shall pay back input tax credit availed in respect of all taxable goods on hand
on the date of cancellation. In the case of capital goods on hand on which input
tax credit has been received, the input tax to be paid back shall be based on the
book value of such goods on that date :
Provided that in respect of transfer of a business to another VAT dealer,
there shall be no requirement to repay the input tax credit availed on capital
goods and other goods.
1119
(5)
The authority prescribed may cancel the registration of a VAT
dealer who has applied for cancellation under sub-rule (1) or sub-rule (2) if it
is satisfied that there are valid reasons for such cancellation of registration.
The cancellation shall be intimated on Form VAT 124.
(6)
dealer who has not applied for cancellation of registration if the authority
prescribed is satisfied that the dealer is not entitled for registration under
section 17 or found to be not complying with the provisions of the Act.
(7)
The authority prescribed shall intimate on Form VAT 123 to a
VAT dealer when refusing to cancel the registration of the dealer under this
rule within fourteen days of receipt of Form VAT 121.
(8)
The authority prescribed shall issue a notice on Form VAT 125 to
a VAT dealer before compulsorily cancelling the registration.
(9)
dealer registered under sub-section (6) of section 17, where the VAT dealer :
(a)
has no fixed place of abode or business; or
(b)
has not kept proper accounting records relating to any business

activity carried on by him; or
(c)
has not submitted correct and complete tax returns.
(10) The cancellation of registration shall take effect from the end of
the tax period in which the registration is cancelled unless the authority
prescribed orders the cancellation to take effect at an earlier date.
(11) The cancellation of a registration of any VAT dealer shall not
affect any liabilities under the Act or any requirement to comply with any
provisions of the Act until the date of cancellation of registration.
(12) Wherever any order of cancellation or refusal to cancel is made,
the VAT dealer shall be given an opportunity of being heard.
TURNOVER TAX DEALER

[Secs. 17(7), 17(8); Rules 4(2), 4(3), 6(2), 6(3), 15(1) to (8); Form
TOT 001A]
Section 17 (7) : Every dealer not registered or not liable for registration
as VAT dealer and who sells any goods and has a taxable turnover exceeding
1120
Rs. 5,00,000/- (Rupees Five lakhs only) in a period of twelve consecutive months
or has reason to believe that his taxable turnover in a period of twelve
consecutive months will exceed Rs. 5,00,000/- (Rupees Five lakhs only), shall
apply for registration as TOT dealer in the manner prescribed.
Section 17 (8) : Subject to the provisions contained in sub-section (5),

every dealer who held a registration certificate under the Andhra Pradesh
General Sales Tax Act, 1957, shall be deemed to be registered as TOT dealer
under the Act provided the dealer had a taxable turnover exceeding Rs.
5,00,000/- (Rupees Five lakhs only) but below Rs. 40,00,000/- (Rupees Forty
lakhs only) during the period from 1st January, 2004 to 31st December, 2004,
and had not discontinued his business or his Registration Certificate had not
been cancelled during that period.
Rule 4 (2) : Every dealer not registered or not liable to be registered
for VAT but liable to be registered under sub-section (7) of section 17 shall
submit an application for TOT registration in form TOT 001 to the authority
prescribed.
Rule 4 (3) : Every dealer registered under the Andhra Pradesh General
Sales Tax Act, 1957 whose taxable turnover exceeds rupees five lakhs for the
period from the 1st day of January 2004 to the 31st day of December, 2004,
who is neither required to be registered for VAT nor opted to be registered for
VAT shall be deemed to be registered under sub-section (8) of section 17.
Rule 6(2) : In the case of registration under sub-section (7) of section 17
the general registration for turnover tax shall take effect :
(a)
from the 1st day of the month during which business commenced
in the case of a dealer starting business and who does not register
for VAT, and who has no liability to register for VAT but whose
estimated taxable turnover is more than Rupees five lakhs for
the following twelve consecutive months;
(b)
from the 1st day of the month subsequent to the month in which
the obligation to apply for general registration arose in the case
of a dealer, whose taxable turnover exceeded Rupees five lakhs in
a period of twelve consecutive months.
Rule 6 (3) : In the case of deemed registration under sub-section (8) of

section 17, the general registration shall take effect from the date of
commencement of the Act.
ILLUSTRATIONS FOR EFFECTIVE DATE OF REGISTRATION (EDR) UNDER THIS RULE FOR APPLICATIONS
RECEIVED IN TIME ARE GIVEN BELOW :
Sl. No.
1.
Rule
EDR
17(2)
6 (1)(a)
New dealer commencing business.

month during which the
first taxable sale is
declared to be made.
Example
-
2.
17 (3)
6 (1)(b)
Existing business. (A
TOT dealer or unregistered dealer).

month in which the
liability to apply for
registration arose.
3.
17 (4)
6 (1)(c)
Dealers registered
under APGST Act and
having liability to
register for VAT.
From 01-04-2005.
Liability for registration arose on

31.8.2005
Applied for VAT
registration
on
11.9.2005
EDR is 1.10.2005.
Dealers who are allotted Taxpayer Identification Numbers as
on 31.03.2005 are
deemed to be registered as VAT dealers.
EDR is 01.04.2005.
1121
Declared date of
taxable sale shown is
20.7.2005
Applied for VAT
registration
on
3.7.2005
EDR is 1.7.2005
Section in
the Act
4.
Section in
the Act
Rule
EDR
17 (5)
6 (1)(d)

registration irrespective of taxable turnover.

has applied for VAT registration.
Example
-
5.
6.
17 (6) (a)
17(6)(b)
6 (1)(e)
6 (1)(f)
Voluntary registration
of a existing business.
New business intending to effect taxable

sales (Start up business).

month following the
made on or before the 15th
of the month.

month following the
made after 15th of month.

has applied for registration.
Applied for VAT

registration
on
10.08.2005
EDR is 01.09.05
Applied for VAT

registration
on
30.08.2005
EDR is 01.10.2005.
Dealer setting up business on 20.7.2005.
Expected date of
transaction / sale
under the Act is on
20.08.2005
Applied for VAT
registration
on
05.08.2005
EDR is 01.08.2005.
1122
Sl. No.
Sl. No.
6.
Section in
the Act
Rule
17(6)(b)
6 (1)(f)
EDR
Example
-
8.
9.
17 (7)
17 (7)
17 (8)
6 (2)(a)
6 (2)(b)
6 (3)
New dealer commencing business and estimating his taxable

turnover to exceed Rs.5
lakhs for the following
12 consecutive months
and not having a
liability for VAT registration.

month during which
business commenced.
Existing
business
whose taxable turnover exceeds Rs.5 lakhs
in a period of 12 consecutive months.

month in which the
obligation to apply for
general registration arose.
From 01-04-2005.
Taxable turnover of
Rs.5 lakhs exceeded
on 31.7.2005.
Liability to apply for
TOT registration i.e.
on or before 15.8.2005
EDR is 01.09.2005.
EDR is 01.04.2005
1123

TOT for existing registered dealers under
APGST Act.
Business commenced
on 20.08.2005.
EDR is 01.08.2005.
7.
Applied for VAT

registration
on
03.09.2005
EDR is 01.09.2005.
1124
Rule 15. Procedure for cancellation of TOT registration.

(1) Where a TOT dealer ceases to carry on business, that TOT dealer or his
legal representative shall apply to the authority prescribed on Form TOT 014
for cancellation of general registration within fourteen days of the closure of
business.
(2)
A TOT dealer may apply for cancellation of his general registration
at the end of any period of twelve consecutive months if his taxable turnover
for that period does not exceed Rupees three lakhs seventy five thousand
(Rs. 3,75,000/-).
(3)
The authority prescribed shall issue an order of cancellation of
registration on Form TOT 015 to the TOT dealer who has applied for
cancellation, if satisfied that there are valid reasons for such cancellation of
registration.
(4)
The authority prescribed shall issue a notice on Form TOT 016 to
a TOT dealer, when refusing to cancel the general registration number.
(5)
The authority prescribed shall issue a notice on Form TOT 013 to
a TOT dealer before compulsorily cancelling the general registration.
(6)
Cancellation of general registration shall take effect from the end
of the month in which the general registration is cancelled, unless the authority
prescribed orders the cancellation to take effect from an earlier date.
(7)
The cancellation of a registration of any TOT dealer shall not
affect any liabilities under the Act or any requirement to comply with any
provisions of the Act until the date of cancellation of registration.
(8)
Wherever any order of cancellation or refusal to cancel an application is made, the TOT dealer shall be given an opportunity of being heard.
CHARGE TO TAX
VAT DEALER WORKS CONTRACT
(Without Composition)
[Sections 4(7)(a), 11; Rule 17(1)]
Section 4 (7) : Notwithstanding anything contained in the Act :
(a)
every dealer executing works contract shall pay tax on the value
of goods at the time of incorporation of such goods in the works
1125
executed at the rates applicable to the goods under the Act :

Provided that where accounts are not maintained to determine the
correct value of goods at the time of incorporation, such dealer shall pay tax at
the rate of 12.5% on the total consideration received or receivable subject to
such deductions as may be prescribed.
Section 11. Calculation of Tax payable. (1) Subject to subsection (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.
Rule 17. Treatment of works contracts. (1) Treatment of VAT

dealer executing works contract :
(a)
in the case of contracts not covered by sub-rules (2), (3) and (4) of
this rule, the VAT dealer shall pay tax on the value of the goods at
the time the goods are incorporated in the work at the rates
applicable to the goods;
(b)
in such a case, the VAT dealer shall be eligible to claim input tax
credit on ninety per cent (90%) of the tax paid on the goods
purchased other than those specified in sub-rule (2) of Rule 20
and shall be eligible to issue a tax invoice;
(c)
if such VAT dealer awards any part of the contract to a subcontractor, such sub-contractor shall issue a tax invoice to the
contractor for the value of the goods at the time of incorporation
in such sub-contract. The tax charged in the tax invoice issued
by the sub-contractor shall be accounted by him in his
returns;
(d)
the value of the goods used in execution of work in the contract,

declared by the contractor shall not be less than the purchase
value and shall include seigniorage charges, blasting and breaking
charges, crusher charges, loading, transport and unloading
charges, stacking and distribution charges, expenditure incurred
1126
in relation to hot mix plant and transport of hot mix to the site
and distribution charges;
(e)
subject to clause (d) the following amounts are allowed as

deductions from the total consideration received or receivable
for arriving at the value of the goods at the time of incorporation :
(i)
labour charges for execution of the works;
(ii)
charges for planning, designing and architects fees;
(iii)
charges for obtaining on hire or otherwise machinery and

tools used for the execution of the works contract;
(iv)
cost of consumables such as water, electricity, fuel, etc.,

used in the execution of the works contract, the property
in which is not transferred in the course of execution of a
works contract;
(v)
cost of establishment of the contractor to the extent it is

relatable to supply of labour and services;
(vi)
other similar expenses relatable to supply of labour and

services;
(vii)
profit earned by the contractor to the extent it is relatable

to supply of labour and services;
(f)
where tax has been deducted at source, the contractor VAT dealer
shall submit Form VAT 501-A after certification by the contractee.
In case the contractor is unable to submit Form VAT 501-A he
shall pay the tax due;
(g)
where the VAT dealer has not maintained the accounts to

determine the correct value of the goods at the time of
incorporation he shall pay tax at the rate of twelve and a
half percent (12.5%) on the total consideration received or
receivable subject to the deductions specified in the table
below. In such cases the contractor VAT dealer shall not be eligible
to claim input tax credit and shall not be eligible to issue tax
invoices.
1127
STANDARD DEDUCTIONS FOR WORKS CONTRACTS

Sl. No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Type of contract
(a)
(i)
(ii)
(iii)
Electrical Contracts
H.T. Transmission lines
Sub-station equipment
Power house equipment and
extensions
(iv) 11 and 22 KV and L.T. distribution lines 12+5
(v) All other electrical contracts
(b)
All structural contracts
Installation of plant and machinery
Fixing of marble slabs, polished granite
stones and tiles (other than mosaic tiles)
Civil works like construction of
buildings, bridges roads etc
Fixing of sanitary fittings for plumbing,
drainage and the like
Painting and polishing
Laying of pipes
Tyre re-treading
Dyeing and printing of textiles
Printing of reading material, cards,
pamphlets, posters and office stationery
All other contracts
Percentage of the total

value eligible for
deduction
Twenty percent
Fifteen percent
Fifteen percent
Seventeen percent
Twenty five percent
Thirty five percent
Fifteen percent
Twenty five percent
Thirty percent
Fifteen percent
Twenty percent
Twenty percent
Forty percent
Forty percent
Forty percent
Thirty percent
WORKS CONTRACT FOR THE

GOVERNMENT OR LOCAL AUTHORITY
(Under Composition)
[Section 4(7)(b), 4(7)(e); Rule 17(2); Forms VAT 250, VAT 250A]
Section 4 (7) (b) : Any dealer executing any works contract for the
Government or local authority may opt to pay tax by way of composition at
the rate of 4% on the total value of the contract executed for the Government
or local authority and in such cases, the tax at 4% shall be collected at source
1128
by such contractee and remitted to Government in such manner as may be

prescribed.
[Section 4 (7) (e) : Any dealer having opted for composition under
clauses (b), (c) and (d), purchases or receives any goods from outside the State
or India or from any dealer other than a Value Added Tax dealer in the State
and uses such goods in the execution of the works contracts, such dealer shall
pay tax on such goods at the rates applicable to them under the Act and the
value of such goods shall be excluded for the purpose of computation of
turnover on which tax by way of composition at the rate of four percent (4%)
is payable].
1
Rule 17 (2)Treatment of Works Contracts executed for State

Government or local authority :
(a)
Where a dealer executes any contract exceeding a value of

Rs. 500000/- (Rupees five lakhs only) awarded by either a State
Government department or a local authority he must register
himself as a VAT dealer;
(b)
the VAT dealer opting to pay tax by way of composition under

clause (b) of sub-section (7) of section 4 shall apply for composition
in Form VAT 250 and shall be liable to pay tax at the rate of four
per cent (4%) on the total value of the contract;
(c)
such tax shall be collected by the contractee Government

Department or local authority and remitted to the authority
prescribed within fifteen days from the date of each payment
made to the contractor;
(d)
the contractee Government Department or local authority shall

complete Form VAT 501 supplied by the contractor indicating
the TIN of the contractor, the amount of tax collected at source
and details of the related contract. Such Form shall be provided
to the contractor;
(e)
the contractor VAT dealer shall declare on VAT Form 200 the
amount received and the tax due on that amount;
(f)
the contractor shall submit Form VAT 501 certified by the

contractee together with Form VAT 200 by the 20th of the month
following the month in which payment was received;
1.
Ins. by Act No. 23 of 2005, w.e.f. 29-08-2005.
1129
(g)
where the contractor submits the forms specified in sub-rule (f)

no payment of tax related to the transaction is required to be
made. In case where the forms are not submitted the contractor
shall be liable to pay the tax due on the amount received;
(h)
where the contractee Government Department or local authority

fails to remit such tax collected at source within fifteen days of
the date of payment to the contractor, the authority concerned
shall be liable to pay penalty and interest for the delayed payment;
(i)
in the case of the execution of any works contract for the State
Government or local authority where the dealer has opted to
pay tax by way of composition under clause (b) of sub-section (7)
of section 4 such dealer shall not be eligible to claim input tax
credit and shall not be eligible to issue tax invoices;
(j)
in the case of a contractor mentioned in clause (a), if any part of

the contract is awarded to a sub-contractor the sub-contractor,
shall be exempt from tax on the value of the sub-contract. The
sub-contractor shall not be eligible to claim input tax credit on
the inputs used in the execution of such sub-contract;
(k)
in the case of a contractor mentioned in clause (a) where any tax

has been collected at source by the State Government or local
authority under sub-section (3) of section 22, no refund of such
tax collected shall be allowed to the contractor.
WORKS CONTRACTS (Other than for

State Government or Local Authority)
UNDER COMPOSITION
[Section 4(7)(c); 4(7)(e); Rule 17(3); Form VAT 250, VAT 250A]
Section 4 (7) (c) : Any dealer executing works contracts other
than for Government and local authority may opt to pay tax by way of
composition at the rate of 4% 1[x x x] of the total consideration received or
receivable for any specific contract subject to such conditions as may be
prescribed.
1.
Omitted for the words of fifty percent (50%) by Act No. 23 of 2005, w.e.f.
29-08-2005.
1130
1
[Section 4(7)(e) : Any dealer having opted for composition under
is payable].
Rule 17 (3) Treatment of works contracts (other than for State

Government or Local Authority) under composition :
(a)
Any VAT dealer who executes a contract and opts to pay tax as
specified in clause (c) of sub-section (7) of section 4 must register
himself as a VAT dealer;
[(b) the VAT dealer mentioned in clause (a) above shall pay tax at the
rate of four percent (4%) of the total consideration received or
receivable];
(c)
in the case where the VAT dealer opts for composition he shall,
before commencing the execution of the work notify the prescribed
authority on Form VAT 250 of the details including the value of
the contract on which the option has been exercised and when
the VAT dealer opts to withdraw from composition, he shall
notify the prescribed authority on Form VAT 250A;
(d)
on receipt of any payment related to the contract, the contractor

VAT dealer shall calculate the tax due at four percent (4%) 3[x x x]
of the amount received and shall enter such details on Form VAT
200. The tax due shall be paid with the return Form VAT 200;
(e)
where tax has been deducted at source the contractor VAT dealer
shall submit Form VAT 501A after certification by the contractee.
1.
2.
Subs. by G.O.Ms. No. 1614, Rev. (CT-II), dt. 31-08-2005. The earlier was as
follows :
(b) The VAT dealer shall pay tax at the rate of four per cent (4%) of fifty percent
(50%) of the total consideration received or receivable for the contract and the
balance fifty percent (50%) of the total consideration received or receivable
shall be allowed as deduction for the purpose of computation of taxable turnover;
3.
The words of fifty percent (50%) are omitted by G.O.Ms. No. 1614,
Rev. (CT-II), dt. 31-08-2005. Published in the A.P. Gazette Part-I, Extra-ordinary
No. 652, dt. 01-09-2005.
1131
In case the contractor is unable to submit Form VAT 501A he

shall pay the tax due;
(f)
the contractor VAT dealer shall not be eligible for input tax credit
and shall not be eligible to issue tax invoices;
(g)
where the contractor VAT dealer awards any portion of his contract
to a sub-contractor, such contractor shall not be eligible for any
deduction relating to the value of the sub-contract. 1[x x x];
(h)
in case of a contractor mentioned in clause (a) above, where any

tax is deducted under sub-section (4) of section 22, no refund of
such tax deducted shall be allowed to the contractor;
(i)
where the contractee fails to remit such tax deducted at source

within fifteen days of the date of payment to the contractor, the
authority concerned shall be liable to pay penalty and interest
for the delayed payment.
APARTMENT BUILDERS, DEVELOPERS

UNDER COMPOSITION
[Section 4(7)(d); 4(7)(e); Rule 17(4); Form VAT 250, VAT 250A]
Section4(7)(d) : Any dealer engaged in construction and selling of
residential apartments, houses, buildings or commercial complexes may opt
to pay tax by way of composition at the rate of 4% of twenty five percent (25%)
of the consideration received or receivable or the market value fixed for the
purpose of stamp duty whichever is higher subject to such conditions as may
be prescribed;
[Section 4(7)(e): Any dealer having opted for composition under

2
1.
The words The sub-contractor, if he is a VAT dealer, in such a case may either
opt for composition under clause (c) of sub-section (7) of section 4, or pay tax
under clause (a) of sub-section (7) of section 4 are omitted by G.O.Ms. No.
1614, Rev. (CT-II), dt. 31-08-2005. Published in the A.P. Gazette Part-I Extraordinary No. 652, dt. 01-09-2005.
2.
1132

is payable].
Rule 17 (4) Treatment of Apartment Builders and Developers

under composition :
(a)
Where a dealer executes a contract for construction and selling of

residential apartments, houses, buildings or commercial
complexes and opts to pay tax by way of composition under
clause (d) of sub-section (7) of section 4, he must register himself
as a VAT dealer;
(b)
the VAT dealer shall notify the prescribed authority on Form

VAT 250, of his intention to avail composition for all works
specified in clause (a) above, undertaken by him;
(c)
when the VAT dealer opts to withdraw from composition, he

shall notify the prescribed authority on Form VAT 250A;
(d)
the VAT dealer shall have to pay tax by way of composition at

the rate of four percent (4%) on twenty five percent (25%) of the
total consideration received or receivable or the market value
fixed for the purposes of stamp duty, whichever is higher and the
balance seventy five percent (75%) of the total consideration
received or receivable shall be allowed as deduction for the
purpose of computation of taxable turnover;
(e)
on receipt of any payment related to the contract, the contractor

VAT dealer shall calculate the tax due at four percent (4%) of
twenty five percent (25%) of the amount received and shall enter
such details on Form VAT 200. The tax due shall be paid with the
return Form VAT 200;
(f)
the contractor VAT dealer shall not be eligible for input tax credit
and shall not be eligible to issue tax invoices;
(g)
where the contractor VAT dealer specified in clause (f) above,

awards any portion of his contract to a sub-contractor, such
contractor shall not be eligible for any deduction relating to the
value of the sub-contract; 1[x x x]
1.
The words The sub-contractor if he is a VAT dealer, in such a case may either
opt for composition under clause (d) of sub-section (7) of section 4, or pay tax
under clause (a) of sub-section (7) of section 4. are omitted by G.O.Ms. No.
1614, Rev. (CT-II), dt. 31-08-2005.
1133
(h)
where any dealer mentioned in clause (a) opted for composition

and paid any tax under the provisions of APGST Act, 1957 before
30-04-2005, there shall be no further liability in respect of the
built up area for which tax has already been paid under APGST
Act, provided the sale deed is executed in respect of such built up
area before 30-09-2005;
the VAT dealer mentioned in clause (a) above shall pay an amount
equivalent to one percent (1%) of the total consideration received
or receivable or the market value fixed for the purpose of stamp
duty, whichever is higher. This payment shall be made by way
of a demand draft obtained in favour of the Commercial Tax
Officer or Assistant Commissioner concerned and the instrument
is to be presented at the time of registration of the property to the
Sub-Registrar, who is registering the property, duly furnishing
his TIN (Tax payer Index Number) and the full postal address of
the CTO/Assistant Commissioner concerned on the reverse of
the DD. The Sub-Registrar, shall then send the same to the CTO/
Assistant Commissioner concerned every week].
[(i)
TURNOVER TAX DEALER

WORKS CONTRACTS
[Section 4(2), 4(7)(f), 10; Rule 17(5)]
Section 4 (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.
[Section 4(7)(f)] : Any dealer who is liable to be registered for TOT
and executing any works contracts shall pay tax at the rate of 1% on total
1.
Added by G.O.Ms. No. 1614, Rev. (CT-II), dt. 31-08-2005. Pub. in the A.P.
Gazette Part-I, Extra-ordinary No. 652, dt. 01-09-2005.
2.
Renumbered by Act No. 23 of 2005, w.e.f. 29-08-2005.
1134
value of the goods at the time of incorporation of the goods used :

Provided that where accounts are not maintained to determine the
correct value of the goods at the time of incorporation, such dealers shall pay
tax at the rate of 1% on the total consideration received or receivable subject
to such deductions as may be prescribed :
1
[Provided further that no tax shall be payable under this sub-section

on the turnover relating to the consideration received as a sub-contractor if
the main contractor opted to pay tax by way of composition subject to the
condition that the sub-contractor shall pay tax in respect of any goods
purchased or received from outside the State or India or from any person
other than a Value Added Tax dealer in the State on the value of such goods at
the rates applicable to them under the Act].
Section 10. Turnover Tax. (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.
Rule 17 (5) : (a) Where the contractor is a TOT dealer as specified in

clause (e) of sub-section (7) of section 4, he shall pay tax at the rate of one
percent (1%) on the value of the goods at the time of their incorporation in the
execution of the contract.
(b)
1.
Where the TOT dealer has not maintained the accounts to

determine the correct value of the goods at the time of
incorporation he shall pay tax at the rate of one percent (1%) on
the total consideration received or receivable subject to the
following deductions :
(i)
labour charges for execution of the works;
(ii)
(iii)

(iv)
cost of consumables such as water, electricity, fuel, etc.,

used in the execution of the works contract, the property
Added by Act No. 23 of 2005, w.e.f. 29-08-2005.
1135
in which is not transferred in the course of execution of a

works contract;
(c)
(v)

(vi)

services;
(vii)
profit earned by the contractor to the extent it is relatable

where any tax is collected or deducted at source under subsection (3) or (4) of section 22, such tax collected or deducted shall
not be refunded to the contractor TOT dealer.
INPUT TAX CREDIT

[Section 13; Rule 20]
Section 13. Credit for input tax. (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 input tax credit for the sales tax paid
under Andhra Pradesh General Sales Tax 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
01-04-2004 to 31-03-2005 and are goods eligible for input tax credit.
(b)
Subject to the conditions if any, prescribed, input tax credit shall

be allowed to a VAT dealer on registering as VAT dealer if any
input tax is paid or payable in respect of all purchases of taxable
goods, where such goods are for use in the business as VAT dealer,
provided the goods are in stock on the effective date of registration
and such purchase occurred not more than three months prior to
such date of registration.
1136
(3)
A VAT dealer shall be entitled to claim :
(a)
input tax credit under sub-section (1), on the date the goods are
received by him, provided he is in possession of a tax invoice;
(b)
input tax credit or sales tax credit under sub-section (2), on the
date of registration, provided he is in possession of documentary
evidence therefor.
(4)
A VAT dealer shall not be entitled for input tax credit or sales tax
credit in respect of the purchases of such taxable goods as may be prescribed.
(5)
No input tax credit shall be allowed on the following :
(a)
works contracts where the VAT dealer pays tax under the
provisions of clauses (b), (c) and (d) of sub-section (7) of section 4;
(b)
transfer of a business as a whole;
(c)
sale of exempted goods except when such goods are sold in the
course of export or exported outside the territory of India;
(d)
exempt sale;
(e)
transfer of exempted goods on consignment basis or to branches

of the VAT dealer outside the State otherwise than by way of sale;
(f)
[x x x]
(6)
The input tax credit for transfer of taxable goods outside the state
by any VAT dealer otherwise than by way of sale shall be allowed for the
amount of tax in excess of 4%.
(7)
Where any VAT dealer pays tax under clause (a) of subsection (7) of section 4, the input tax credit shall be limited to 90% of the related
input tax.
(8)
Where goods purchased by a VAT dealer are partly for his business
use and partly for other than his business use, the amount of the input tax
credit shall be limited to the extent of input tax that relates to the goods used
in his business.
(9)
A Turnover Tax dealer or a casual trader shall not be entitled to
claim input tax credit.
1.
Omitted by Act No. 10 of 2006, w.e.f. 01-12-2005 the earlier as follows :

(f) supply of goods by the VAT dealer as mentioned in sub-section (9) of
section 4.
1137
(10) Any dealer covered by Explanations III and IV of clause (10) of

section 2 shall not be eligible for input tax credit against or relatable to sale of
un-serviceable goods or scrap, surplus, old, obsolete or discarded material or
waste products whether by auction or otherwise.
(11) Any VAT dealer who purchases any taxable goods from a dealer
covered under sub-section (10) above, shall be eligible for input tax credit, on
production of documentary evidence that tax has been charged.
Rule 20. Input Tax Credit. (1) After the commencement of the
Act, where any dealer gets registered as a VAT dealer or where the authority
prescribed registers any dealer as a VAT dealer under Rule 11 (1), such dealer
shall be eligible for input tax credit as provided under sub-section (2) (b) of
section 13. The claim shall be made on Form VAT 118 within 10 days from the
date of receipt of VAT registration. The goods on which the input tax credit is
claimed or allowed shall be available in stock on the effective date of VAT
registration. The documentary evidence for such claim shall be on the basis of
a tax invoice issued by a VAT dealer for the purchases made and the input tax
credit allowed on Form VAT 119 shall be claimed on the first return to be
submitted by such dealers. The prescribed authority shall issue such Form
VAT 119 within 10 days of receipt of Form VAT 118.
(2)
The following shall be the items not eligible for input tax credit as
specified in sub-section (4) of section 13 :
(a)
all automobiles including commercial vehicles / two wheelers /

three wheelers required to be registered under the Motor Vehicles
Act, 1988 and including tyres and tubes, spare parts and
accessories for the repair and maintenance thereof; unless the
dealer is in the business of dealing in these goods;
(b)
fuels used for automobiles or used for captive power generation

or used in power plants;
(c)
air conditioning units other than those used in plant and

laboratory, restaurants or eating establishments, unless the
dealer is in the business of dealing in these goods;
(d)
any goods purchased and used for personal consumption;
(e)
any goods purchased and provided free of charge as gifts

otherwise than by way of business practice;
(f)
any goods purchased and accounted for in the business but

utilised for the purpose of providing facilities to employees
including any residential accommodation;
1138
(g)
1
crude oil used for conversion or refining into petroleum products;
[(h) natural gas, naptha and coal unless the dealer is in the business
of dealing in these goods];
(i)
any input used in construction or maintenance of any buildings

including factory or office buildings, unless the dealer is in the
business of executing works contracts and has not opted for
composition;
(j)
earth moving equipment such as bulldozers, JCBs, and poclaim

etc., and parts and accessories thereof unless the dealer is in the
business of dealing in these goods;
(k)
generators and parts and accessories thereof used for captive

generation unless the dealer is in the business of dealing in these
goods.
[(l)
rice purchased by Food Corporation of India from VAT dealers or

farmers or farmers clubs or associations of farmers in the State];
[(m) rice purchased by Andhra Pradesh State Civil Supplies

Corporation Ltd., from the Depots of Food Corporation of India,
in Andhra Pradesh or from any other VAT dealer in the State];
1.
2.
Subs. by G.O.Ms. No. 2201, Rev. (CT-II), dt. 29-12-2005. w.e.f. 01-04-2005.
Pub. in the A.P. Gazette Part-I, Extra-ordinary No. 892, dt. 31-12-2005. The earlier
was as follows :
(h) natural gas and coal used for power generation.
Added by G.O.Ms. No.1452, Rev. (CT-II), dt. 26-07-2005, and again subs. by
G.O.Ms. No. 1675, Rev. (CT-II) Dept., dt. 23-09-2005. The earlier was as
follows :
(l) any goods (except kerosene) purchased or procured for supply through
Public Distribution System (PDS)
As a result of this restricition on input tax credit for the goods (except
kerosene) purchased for the purpose of Public Distribution System (PDS), the
corresponding sales will not be liable to any tax. Accordingly the Food
Corporation of India or Andhra Pradesh State Civil Supplies Corporation Limited
will be liable to pay tax only, if their sales are first sales. They will not be liable to
pay any tax on the sales of goods (except kerosene) purchased from local Value
Added Tax Dealers and they will also be not eligible to claim any input tax credit
for such purchases. Fair Price Shops are acting as agents on behalf of the State
Government i.e., a resident principal. As such, fair price shops do not have any
liability to register under Andhra Pradesh Value Added Tax Act, 2005 and to pay
any tax. However, if the fair price shops are dealing in any other goods not
supplied through Public Distribution System, they will be liable to register under
Andhra Pradesh Value Added Tax Act, 2005 depending on their turnover of such
goods and will have to pay tax accordingly.
3.
Ins. by G.O.Ms. No. 1675, Rev. (CT-II) Dept., dt. 23-09-2005.
1139
[(n) refrigerators, coolers and deep freezers purchased by Soft Drink

Manufacturers not for use in their manufacturing premises;
(o)
any goods purchased and used as inputs in job work;
(p)
PDS Kerosene purchased by wholesale dealers for the purpose of

supplying to Fair Price Shops].
When any goods mentioned above are subsequently sold without

availing any input tax credit, no tax shall be levied and recovered from a VAT
dealer having been denied the input tax credit at the time of purchase. Any
VAT dealer having purchased items mentioned above shall maintain a separate
account or record without including such purchases in the purchase of eligible
inputs taxable at each rate.
Whenever a VAT dealer makes a claim for input tax credit for any tax
period, the tax paid on the purchases of the above goods shall be excluded for
arriving at the eligible input tax credit. This principle applies to all the subrules in this rule.
(3)
Where all the sales of a VAT dealer for that tax period are taxable,
the whole of the input tax may be claimed as a credit excluding the tax paid on
the purchase of any goods mentioned in sub-rule (2).
2
[(3-a) Where any VAT dealer pays tax at the rate of twelve and half
percent (12.5%) on the sale consideration of a used or a second hand vehicle
already registered in the State under the Motor Vehicles Act, 1988, he shall be
eligible for notional input tax credit at the rate of twelve and half percent
(12.5%) on the purchase price actually paid supported by documentary
evidence. Such notional input tax credit shall not exceed the output tax payable
on the sale of used or second hand vehicle by the VAT dealer].
(4)
(a) Where any VAT dealer buys and sells the goods in the same
form, the input tax credit can be claimed fully in respect of all the taxable
goods purchased for every tax period excluding the tax paid on the purchase
of any goods mentioned in sub-rule (2). Such VAT dealer is required to make a
declaration in Form VAT 200D for every tax period along with tax return.
(b)
Where any common inputs like packing material are used

commonly for sales of taxable and exempt goods (goods in
1.
Added by G.O.Ms. No. 2201, Rev. (CT-II), dt. 29-12-2005, w.e.f. 01-04-2005.
Published in the A.P. Gazette Part-I, Ext. No. 892, dt. 31-12-2005.
2.
Gazette Part-I, Ext. No. 652, dt. 01-09-2005.
1140
Schedule I), the VAT dealer shall repay input tax related to exempt
element of common inputs after making adjustment in the tax
return for March by filing Form VAT 200B for the period of twelve
months ending March. In Form VAT 200B, the eligible input tax
credit shall be calculated by applying the formula :
Ax
B
C
Where,
A is the total amount of input tax for common inputs for each tax rate
excluding the tax paid on the purchase of any goods mentioned in sub-rule (2).
B is the sales turnover of taxable goods including zero-rated sales.
C is the total turnover including sales of exempt goods.
(c)
This sub-rule is not applicable if the VAT dealer is making exempt

transactions.
(5)
(a) Where the value of taxable sales is 95% or more of the total
value for that tax period, the VAT dealer may claim credit for the full amount
of input tax paid on purchases;
(b)
where the value of taxable sales is 5% or less of the total value, the
VAT dealer shall not be eligible to claim input tax credit for that
tax period;
(c)
such a VAT dealer covered under clause (a) and (b) above, shall
make an adjustment in the month of March for the 12 month
period ending with March on Form VAT 200B. In the Form VAT
200B, the eligible input tax credit shall be calculated by applying
the formula A x B/C. The excess input credit claimed shall be paid
back or the balance input credit eligible can be claimed in the tax
return for March;
(d)
this sub-rule is not applicable if the VAT dealer is making exempt

transactions.
(6)
Where any VAT dealer is able to establish that specific inputs are
meant for specific output, the input tax credit can be claimed separately for
taxable goods. For the common inputs, such VAT dealer can claim input tax
credit by applying the formula :
Ax
B
C
1141
for the common inputs used for taxable goods, exempt goods (goods in
Schedule I) and exempt transactions :
Provided the VAT dealer furnishes an additional return in Form VAT
200A for each tax period for adjustment of input tax credit and also makes an
adjustment for a period of 12 months ending March every year by filing a
return in Form VAT 200B.
(7)
Where a VAT dealer is making taxable sales and sales of exempt
goods (goods in Schedule I) for a tax period and inputs are common for both,
the amount which can be claimed as input tax credit for the purchases of the
goods at each tax rate shall be calculated by the formula :
Ax
B
C

(8)
(a) Where a VAT dealer is making sales of taxable goods and also
exempt transactions of taxable goods in a tax period, for the purchases of
goods taxed at 12.5%, the input tax to the extent of 8.5% portion can be fully
claimed in the same tax period;
(b)
In respect of purchases of goods taxable at 1%, 4% and for the 4%

tax portion in respect of goods taxable at 12.5%, the VAT dealer
shall apply the formula :
Ax
B
C
for each tax period :

(9)
(a) Where a VAT dealer is making sales of taxable goods, exempt
sales (goods in Schedule I) and also exempt transaction of taxable goods in a
tax period, for the purchases of goods taxed at 12.5%, the input tax to the
extent of 8.5% portion can be fully claimed in the same tax period.
1142
(b)
In respect of purchases of goods taxable at 1%, 4% and for the 4%

tax portion in respect of goods taxable at 12.5%, the VAT dealer
shall apply the formula :
B
Ax
C
for each tax period :

(10) (a) In the case of a VAT dealer filing Form VAT 200B, the excess
input credit claimed shall be paid back or the balance input credit eligible can
be claimed in the tax return for March.
(b)
For the purpose of this rule, the words A, B and C in the

formula :
B
Ax
C
shall carry the following meaning subject to clause (c) below :

A is the total amount of input tax for common inputs for each tax rate
for the tax period; excluding the tax paid on the purchases of any goods
mentioned in sub-rule (2);
B is the taxable turnover as defined under the Act for the tax period,
which shall include zero rated sales of any goods inter-State sales, exports
and deemed exports;
C is the total turnover as defined under the Act :
Both the values of B and C shall not include :
(c)
(i)
purchase price of goods taxable under section 4 (4);
(ii)
transactions falling under section 5 (2), (import) section 6

(2) of the CST Act, 1965;
(iii)
value of transfer of business as a whole.
Where a VAT dealer makes exempt transactions for the calculation

of input tax credit in excess of input tax of 4% for 12.5% rate
goods, the value of B shall include the value of the goods
1143
transferred outside the State otherwise than by way of sale

(transaction falling under section 6 (a) of CST Act 1956).
(d)
For the purpose of sub-rules from (4) to (9) of this rule, the value
of A is the amount of input tax relating to common inputs for
each tax rate, B is the taxable turnover and C is the total turnover.
For the purpose of Form VAT 200A, the value of A, B and C would
be for that tax period whereas for the purpose of Form VAT 200B,
the values of A, B and C would be the values for the period of 12
months ending March including March.
(e)
Any VAT dealer opting for any method of input tax credit
calculation specified from sub-rule (5) to sub-rule (9) shall be
required to be under only one method for the 12 months period
ending March. The method of adjustment to be made in the return
for March shall be on the basis of latest option exercised by the
dealer upto March.
(11) The Deputy Commissioner concerned may impose any conditions

or a particular method for a VAT dealer for the appointment of input tax
credit where the VAT dealer makes taxable and exempt sales and/or exempt
transactions.
(12) Where a VAT dealer opts to pay tax by way of composition
or where a VAT dealer is exempt under Rule 17 (2) (j), such dealer shall
furnish Form VAT 200E along with Form VAT 200 for each tax period. Such
VAT dealers shall calculate for each tax period the eligible input tax credit
by excluding the turnover or value relating to composition/exemption in
Form VAT 200E. In addition the VAT dealer shall furnish an adjustment
return in Form VAT 200F for the month of March for a period of 12
months ending March making an adjustment of input tax credit in the Form
VAT 200F.
ILLUSTRATIONS FOR RULE 20

1.
VAT dealers following sub-rule (3) of Rule 20 : (only taxable
sales)
TYR, a VAT dealer is dealing in sales of Readymade garments and
Footwear which are taxable at 4% and 12.5% respectively under the provisions
of the Act. TYR is not dealing in sales of any exempt goods. TYR also purchases
packing material and certain other goods required for business The procedure
1144
for claiming input tax credit for a month is illustrated below :

SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
Turnover
(Rs.)
VAT Paid
(Rs.)
4% Goods
(Readymade
garments &
Packing material)
12.5% Goods
(Footwear &
other goods)
100000
4000
60000
2400
200000
25000
220000
27500
29000
Total
output tax
29900
Total
input tax
VAT payable
Turnover
(Rs.)
Output tax - Input tax
Rs. 29,900 - Rs. 29,000
Rs. 900
VAT Payable
(Rs.)
Note : No adjustments need to be carried since the dealer is dealing

only in taxable goods.
2.
VAT dealers following sub-rule (4) of Rule 20 : (Resellers of
taxable goods and exempt goods)
TVK, a super market, registered for VAT is dealing in taxable goods
(Soaps, Cosmetics, Foodgrains etc.), and exempt goods (Sugar, milk, vegetables
etc.) TVK buys and sells these goods in the same form every month and also
purchases packing material and other goods required for his business. For a
tax period, TVK can claim input tax credit as under.
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
4% Goods
12.5% Goods
Exempt goods
Turnover
(Rs.)
VAT Paid
(Rs.)
Turnover
(Rs.)
100000
100000
50000
4000
12500
NIL
120000
80000
40000
VAT Payable
(Rs.)
4800
10000
NIL
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
4% goods like
packing material
used as common
inputs for both
taxable & exempt
goods
12.5% goods used
in business
common for both
taxable and
exempt goods
Turnover
(Rs.)
1145
VAT Paid
(Rs.)
Turnover
(Rs.)
VAT Payable
(Rs.)
10000
400
NIL
NIL
20000
2500
NIL
NIL
Total
input tax
19400
VAT payable /
Credit carried over
Total
output tax
Rs. 14,800 - Rs. 19,400
Rs. 4,600
14800
Credit carried over to next

month.
Since TVK has availed full input tax credit on common inputs in the
monthly returns :
(i)
the VAT dealer should make declaration in FORM VAT 200D for
each tax period indicating the details of sales of taxable goods
and exempt goods and also details of common input tax and input
tax paid on taxable goods meant for sale and input tax claimed in
the monthly return. No adjustments need to be made for every
tax period;
(ii)
the dealer is required to submit a return in Form VAT 200B for

March to repay input tax related to exempt element of common
inputs after making adjustment of input tax credit for the period
of twelve months ending March for each tax rate.
1146
At the end of March, the turnovers relating to the last 12 months are as
under (Adjustments to be made in Form VAT 200B).
1.
2.
Rs. 50.00 Lakhs - B
Total sales of exempt

goods for 12 months
Rs. 10.00 Lakhs
Rs. 60.00 Lakhs - C
3.
Total turnover for

12 months
(Sl. No. 1 + Sl. No. 12)
4.
Common input tax

paid & claimed for
12 months on
4% goods
Rs. 4,800 - A for 4%
Common input tax

paid & claimed for
12 months on
12.5% goods
Rs. 30,000 - A
for 12.5%
5.
Sl.
No.
Total taxable turnover

for 12 months
Description
1.
Apply calculation
2.
3.
Eligible input tax credit

Input tax credit claimed in
returns
Balance payable
Adjustment
4.
5.
4% rate
of goods
12.5% rate of
goods
A x B/C
4800 x 50 lakhs
60 lakhs
4000
4800
A x B/C
30000 x 50 lakhs
60 lakhs
25000
30000
800
Pay this
amount by
including 4%
output : Box in
Form VAT 200
for March
5000
Pay this amount
by including
12.5% output :
Box in Form VAT
200 for March
1147
3.
VAT dealer following sub-rule (5) of Rule 20 : (Taxable goods &
sales of exempt goods lesser values - Manufacturers or Resellers)
AMD, a rice miller, registered for VAT is engaged in converting Paddy
into rice and selling the same alongwith other by products. AMD is not having
any consignment sales or branch transfers. For a tax period, AMD can claim
input tax credit as under :
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
4% Goods
(Paddy from
other traders &
gunnies)
12.5% Goods
(Machinery
items)
Turnover
(Rs.)
VAT Paid
(Rs.)
4000
10000
1250
NIL
NIL
NIL
NIL
1000
NIL
Total
input tax
5250
150000
(Rice,
broken rice
bran)
VAT Payable
(Rs.)
100000
Exempt goods
(Paddy husk)
VAT payable
Turnover
(Rs.)
Total
output tax
Rs. 6,000 - Rs. 5,250
Rs. 750
6000
6000
Since the value of taxable goods is more than 95% of the total sale value,
AMD can claim full amount of input tax credit. However, if the value of taxable
sales is less than 5% of the total sale value, the VAT dealer should not claim
input tax credit for that tax period.
Further, AMD is required to make an adjustment of input tax credit for
each tax rate in the month of March for the 12 month period ending March on
Form VAT 200B.
At the end of March, the turnovers relating to last 12 months are
illustrated below : (Adjustments to be made on Form VAT 200B)
1148
1.
2.
3.
4.
5.
Sl.
No.
Total taxable turnover

for 12 months
Rs. 80.00 lakhs - B
Total sales of exempt

goods for 12 months
Rs. 50,000
Total turnover for

12 months
Rs. 80.50 lakhs - C
Input tax paid &

claimed for 12 months
on 4% rate goods
Rs. 48,000 - A for 4%
Input tax paid &

claimed for 12 months
on 12.5% rate goods
Rs. 15,000 - A
for 12.5% goods
Description
1.
Apply calculation
2.
3.

Input tax credit claimed in
returns
Balance payable
Adjustment
4.
5.
4% rate
of goods
12.5% rate of
goods
A x B/C
4800 x 80 lakhs
80.50 lakhs
47700
48000
A x B/C
15000 x 80 lakhs
80.50 lakhs
14907
15000
300
Pay this
amount by
including 4%
output : Box in
Form VAT 200
for March
93
Pay this amount
by including
12.5% output :
Box in Form VAT
200 for March
4.
VAT dealer following sub-rule (6) of Rule 20 : (Specific inputs to
specific outputs)
USL, a VAT dealer is engaged in manufacturing of various products.
The dealer is manufacturing two separate products (product x and product y)
wherein the dealer always makes taxable sales of product x and the product y
is meant for both taxable sales and stock transfers. The dealer maintains
1149
separate records indicating specific inputs required for specific outputs. For a
tax period, the method and procedure for arriving at eligible input tax credit
is illustrated below :
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
Turnover
(Rs.)
4% goods for
taxable goods
4% goods common
for taxable sales &
exempt transactions
12.5% goods
specific to taxable
sales
12.5% goods
common for taxable sales and
exempt transactions
Exempt transactions
VAT Paid
(Rs.)
Turnover
(Rs.)
2,00,000
8,000
4,00,000
16,000
32,000
4,000
NIL
NIL
40,000
5,000
NIL
NIL
NIL
NIL
1,50,000
(Product
y)
NIL
Total
Input tax
33,000
1,50,000
(Product
x)
3,00,000
(Product
x & y)
VAT Payable
(Rs.)
Total
Output tax
6,000
12,000
18,000
USL is using specific inputs for specific taxable sales and certain
common inputs meant for both taxable sales and exempt transactions. Hence,
USL is eligible to claim full input tax credit for VAT paid on specific inputs for
each tax period and for the VAT paid on common inputs, the eligible input tax
credit should be arrived for each tax period by applying calculation A x B/C
where;
A
Common input tax for the tax period for each tax rate
Taxable turnover
Total turnover (including value of exempt transactions)
1150
Sl.
No.
Description
1.
Common
input tax
paid in the
tax period
Apply
calculation
Eligible
input tax
2.
3.
4% rate
of goods
Description
16,000
Common
input tax paid
in the tax
period
16000 x 4.50 lakhs 8.5% portion
6.00 lakhs
(tax x 8.5/12.5
12,000
4% portion
(tax 4% /
12.5%)
Eligible input
tax in 4%
portion out of
12.5% rate
paid.
Eligible input
tax credit for
12.5%
rate
related to common inputs

for common inputs

for Specific inputs
Total eligible input tax

credit for the tax
period
VAT payable / Credit

carried over
12.5% rate of
goods
5,000
3,400
1,600
1600x4.50 lakhs
6.00 lakhs
= Rs. 1200
3400 + 1200
= 4600
Rs. 12,000 (4%) + Rs. 4600

(12.5%)
Rs. 16,600/-
Rs. 8,000 (4%) + Rs. 4000 (12.5%)
Rs. 12,000/-
Rs. 12,000 + Rs. 16,600
Rs. 28,600/-
Rs. 18,000 - Rs. 28,600
(+) 10,600 credit carried over to

next period
1151
Note : (1) USL should submit Form VAT 200A every month, making
adjustment of input tax credit to arrive and claim eligible input tax credit for
that tax period for each rate.
(2)
Further, USL should also carry out adjustment of input tax credit
for each tax rate for a period of 12 months ending March and submit such
details in Form VAT 200B.
(3)
Such adjustment shall be made as below :
(a)
any excess claimed in the monthly VAT returns shall be paid

back in the return for March by adding it to the appropriate box
in the output column for each tax rate;
(b)
any balance credit eligible in the monthly returns shall be claimed

is the return for March by adding it to the appropriate box in the
input column for each tax rate.
5.
VAT dealer following sub-rule (7) of Rule 20 : (Manufacturing
and selling taxable goods and exempt goods).
KHT, a dairy plant is registered for VAT and engaged in production and
sales of both taxable goods and exempt goods. The procedure for claiming
input tax credit for a month is shown below :
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
Turnover
(Rs.)
VAT Paid
(Rs.)
Turnover
(Rs.)
VAT Payable
(Rs.)
4% rate goods
common for
taxable and
exempted goods
200000
8000
100000
4000
12.5% rate
common for both
taxable and
exempt goods
60000
7500
NIL
NIL
500000
NIL
700000
NIL
Total
Output tax
4000
Exempt goods
Total
Input tax
15,500
1152
VAT payable = Output - Input tax (eligible)

To arrive at eligible input tax credit, the VAT dealer should make
calculation A x B/C in Form VAT 200A for the tax period for each tax rate.
A
Input tax paid for each tax rate
Taxable turnover
Total turnover
(Taxable turnover + turnover of sales
of exempt goods)
Sl.
No.
Description
4% rate
of goods
1.
Input tax
paid in the
tax period
8000
7500
NIL
2.
Apply
calculation
8000 x 100000
800000
7500 x 100000
800000
NIL
3.
Eligible
input tax
1000
938
1938
VAT payable in the tax period
12.5% rate of
goods
Total eligible
Rs. 4000 - Rs. 1938
Rs. 2062
Note : (1) KHT should submit Form VAT 200A every month, making
adjustment of input tax credit to arrive and claim eligible input tax credit for
that tax period.
(2)
Further, KHT should also carry out adjustment of input tax credit
for each tax rate for a period of twelve months ending March and submit such
(3)
(a)


(b)
1153

6.
VAT dealer following sub-rule (8) of Rule 20 : (Taxable goods &
exempt transactions of taxable goods)
SKM, a VAT dealer is engaged in manufacture and sale of Cement. The
dealer also despatches the goods on consignment basis to other States. There
are no sales of exempt goods. For a tax period, the purchases and sales effected
by the dealer are illustrated below indicating method and procedure to claim
input tax credit.
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
Turnover
(Rs.)
VAT Paid
(Rs.)
4% Goods
6000000
240000
12.5% Goods
5000000
625000
Exempt transactions
NIL
NIL
Total
input tax
865000
Turnover
(Rs.)
NIL
500.00
lakhs
50.00
lakhs
Total
output tax
VAT Payable
(Rs.)
NIL
6250000
NIL
6250000
Since the VAT dealer is using the inputs common for both taxable sales
and exempt transactions, SKM should arrive at eligible input tax credit for
each tax rate for the tax period to claim in the monthly return. For this purpose,
RAS should calculate eligible input tax credit in Form VAT 200A for the tax
period by applying A x B/C, where;
A
Taxable turnover
Total turnover
(Taxable turnover + value of exempt
transactions)
1154
Sl.
No.
Description
1.
Input tax
paid in the
tax period
Apply
calculation
Eligible
input tax
2.
3.
4% rate
of goods
240000
240000 x 500.00
550.00 lakhs
218182
Description
Input tax paid
in the tax
period
8.5% portion
(tax x 8.5/12.5
4% portion (tax
4%/12.5%)
Apply
calculation for
4% portion
Eligible input
tax in 12.5%
rate
12.5% rate of
goods
625000
425000 (*)
200000
200000 x 500
550 lakhs
= Rs. 181818.00
425000 + 181818
= 606818
(*) Input tax to the extent of 8.5% portion can be fully claimed in the
same tax period.
Total eligible input
tax credit
Rs. 218182 + Rs. 606818
For the tax period
Rs. 825000
VAT payable for

the tax period
Output tax - Input tax (eligible)
Rs. 6250000 - 825000
Rs. 5425000/-
Note : (1) SKM should submit Form VAT 200A every month, making
Adjustment of input tax credit to arrive at and claim eligible Input tax credit
for that tax period.
(2)
Further, SKM should also carry out adjustment of input tax credit
(3)
(a)


(b)
1155

7.
VAT dealer following sub-rule (9) of Rule 20 : (Taxable sales,
sales of exempt goods and exempt transactions of taxable goods)
IAK, a VAT dealer is engaged in manufacture of Cotton yarn and
cloth. The dealer effects stock transfer of cotton yarn to other States besides
making sales of Cotton yarn and exempt goods i.e., Cloth. The method and
procedure to arrive at and claim eligible input tax for a tax period is illustrated
below :
SALES (OUTPUT)
PURCHASE (INPUT)
Rate of tax
VAT Paid
(Rs.)
Turnover
(Rs.)
100.00 lakhs
4,00,000
100.00 lakhs
800000
1,00,000
NIL
Exempt goods
NIL
NIL
50.00 lakhs
NIL
Exempt
transactions
NIL
NIL
50.00 lakhs
(Stock
transfers of
cotton yarn)
NIL
4% Goods
12.5% Goods
Total
input tax
Turnover
(Rs.)
5,00,000
VAT Payable
(Rs.)
Total
output tax
400000
NIL
4,00,000
IAK is using common inputs for sales of taxable goods, sales of exempt
goods and for the values of exempt transactions. The dealer should arrive at
eligible input tax credit for each tax rate for the tax period in Form 200A by
applying A x B/C calculation, where :
A
Taxable turnover
Total turnover
(Taxable turnover + Sales of exempt Goods +
value of exempt transactions)
1156
Sl.
No.
Description
4% rate
of goods
1.
Input tax
paid in the
tax period
400000
2.
Apply
calculation
400000 x 500lakhs 8.5% portion

2,00,00,000
(tax x 8.5/12.5
68000
3.
Eligible
input tax
200000
32000
32000 x 100lakhs
200 lakhs
= Rs. 16,000
Total eligible input

tax credit for the
period
VAT payable for

the tax period
Description
Input tax paid

in the tax
period
4% portion (tax
4%/12.5%)
Eligible input
tax in 4%
portion out of
12.5% rate paid
arrive by
applying
calculation
Eligible input
tax in 12.5%
rate goods.
12.5% rate of
goods
100000
68000 + 16000
= 84000
Rs. 200000 + Rs. 84000
Rs. 284000/-
Output tax - Input tax (eligible)
Rs. 400000 - Rs. 284000
Rs. 116000/-
Note : (1) IAK should submit Form VAT 200A every month, making
adjustment of input tax credit to arrive at and claim eligible output tax credit
for that tax period for each rate.
(2)
Further, IAK should also carry out adjustment of input tax credit
1157
(3)
(a)

in the input column for each tax rate;
(b)

RETURNS AND SELF ASSESSMENTS

[Section 20; Rule 23; Forms VAT 200, VAT 200A, VAT 200B,
VAT 200E, VAT 200F]
Section 20.Returns and self-assessments. (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.
(b)
If any mistake is detected as a result of such scrutiny made as

specified in clause (a), the authority prescribed shall issue a notice
of demand in the prescribed form for any short payment of tax or
for recovery of any excess input tax credit claimed.
(4)
Every dealer shall be deemed to have been assessed to tax based
on the return filed by him, if no assessment is made within a period of four
years from the date of filing of the return.
Rule 23. Tax Returns. (1) A return to be filed by a VAT dealer

under section 20 shall be on form VAT 200 and it shall be filed within 20 days
1158
after the end of the tax period. The returns shall be completed in duplicate and
one copy with the proof of receipt shall be retained by the VAT dealer :
1
[Provided that the return for the month of March shall be filed on or
before 7th April].
(2)
A return to be filed by a TOT dealer under section 20 shall be on
Form TOT 007 and it shall be filed within 30 days after the end of the calendar
quarter.
(3)
In the case of a VAT dealer having more than one place of business
all returns prescribed by these rules shall be submitted by the head office of
the business in the State and shall include the total value of all sales of all the
branches in the State of such VAT dealer.
(4)
Where the registration of a VAT dealer or TOT dealer is cancelled,
a final return on Form VAT 200C or TOT 007 as the case may be shall be filed
within fifteen days of the effective date of cancellation of registration.
(5)
If there is a change in the rate of tax during a tax period, a separate
return in respect of each portion of the tax period showing the application of
different rates of tax shall be furnished.
(6) (a) If any VAT dealer having furnished a return on Form VAT 200
finds any omission or incorrect information therein, other than as a result of
an inspection or receipt of any other information or evidence by the authority
prescribed, he shall submit an application on Form VAT 213 within a period
of six months from the end of the relevant tax period.
(b)
On receipt of Form VAT 213 in the case of an under declaration, a

Form VAT 307 shall be issued for the under-declared tax and the
interest due on the late payment. In the case of an over-declaration
Form VAT 308 shall be issued.
(7) (a) In the case of a casual trader a declaration on Form CAT 001 shall
be filed within twenty four hours of his arrival in any place in the State before
the authority prescribed indicating the nature of goods and their value in
which he intends to deal and the period for which he intends to conduct his
business.
(b)
1.
The casual trader shall file a final declaration in Form CAT 002
before the authority prescribed on the last day on which he
intends to leave the place along with payment of the tax due on
the taxable turnover.
Added by G.O.Ms. No. 317, Rev. (CT-II), dt. 14-03-2006.
1159
(8)
Every VAT dealer who claims input tax credit in respect of certain
goods or any specific category of VAT dealers, as notified by the Commissioner
or any other VAT dealer as required by the Deputy Commissioner concerned
shall submit a return in Form VAT 225 in addition to the return on Form 200,
containing the details of purchases made from other VAT dealers in the State
for each tax period or for any other period as may be notified by the
Commissioner or as required by the Deputy Commissioner concerned.
DUE DATE FOR PAYMENT OF TAX

[Section 22; Rule 24; Form VAT 200, TOT 007]
Section 22.Due date for Payment of Tax. (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 fails to pay any tax assessed or penalty levied or any
other amount due under the Act, within the time prescribed or specified
therefor, he shall pay, in addition to the amount of such tax or penalty or any
other amount, interest calculated at the rate of one percent 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 the rate of 4% shall be deducted from the amount
payable to him and such contractee deducting tax at source shall remit such
amount in the manner as may be prescribed.
(4)
In case of 1[a dealer] executing works contract 2[for Central
Government or a Company] or a statutory body or an undertaking or an
institution other than Government or local authority irrespective of the
quantum of value of the contract or for any other dealer or a firm where the
value of the contract exceeds Rs. 10,00,000/- (Rupees Ten lakhs only), a tax 3[at
the rate of four percent (4%)] shall be deducted from the amount payable to
him and such contractee deducting tax at source shall remit such amount in
the manner as may be prescribed.
1.
Subs. for the words a VAT dealer by Act No. 10 of 2006, w.e.f. 24-11-2005.
2.
Subs. for the words for a company by Act No. 23 of 2005, w.e.f. 29-08-2005.
3.
Subs. for the words at the rate of 2% by Act No. 23 of 2005, w.e.f. 29-08-2005.
1160
(5)
Where a VAT dealer paid entry tax on any goods under Andhra
Pradesh Entry Tax on Motor Vehicles into Local Areas Act, 1996 and Andhra
Pradesh Tax on Entry of Goods into Local Areas Act, 2001, such amount shall
be adjusted against VAT payable provided the credit for input tax is not
restricted under 1[x x x] section 13 of the Act.
(6)
(a) The Deputy Commissioner, on an application made by a VAT
dealer or any other dealer, permit the payment of any tax, penalty or other
amount due under the Act in such instalments within such intervals and
subject to such conditions, as he may specify in the said order, having regard
to the circumstances of the each case.
(b)
Where such payment in instalments is permitted, the dealer shall

pay in addition to such tax, penalty, instalment or other amount,
interest at the rate of one percent per month for the amount for
the period from the date specified for its payment on the
instalments so permitted.
[(7) Any person required to deduct tax at source under subsections (3) and (4) fails to deduct or to remit such tax shall be liable to
pay interest at the rate of twelve percent (12%) per annum for the delayed
period].
Rule 24. Tax payment. 3[(1) In the case of a VAT dealer, the tax
declared as due on Form VAT-200, shall be paid not later than fifteen days
after the end of the tax period if the payment is by way of cheque and not later
than twenty days after the end of the tax period if the payment is by way of
demand draft or bankers cheque or by way of remittance into the Treasury
4
[or by Electronic Funds Transfer (EFT)]] :
5
[Provided that the tax declared as due for the month of March shall be
paid on or before 7th April].
(2)
In the case of a TOT dealer, the tax declared as due on Form TOT 007,
shall be paid not later than thirty days after the end of the calendar quarter.
1.
The words the provision of sub-section (4) of omitted by Act No. 23 of 2005,
dt. 26-10-2005, w.e.f. 29-08-2005.
2.
Added by Act No. 23 of 2005, dt. 26-10-2005, w.e.f. 29-08-2005.
3.
Subs. by G.O.Ms. No. 1614, Rev. (CT-II), dt. 31-08-2005. Pub. in the A.P. Gazette
Part-I, Ext. No. 652, dt. 01-09-2005. The earlier was as follows :
(1) In the case of a VAT dealer, the tax declared as due on Form VAT 200, shall
be paid not later than twenty days after the end of the tax period.
4.
Gazette Part-I, Ext. No. 892, dt. 31-12-2005, w.e.f. 01-12-2005.
5.
Proviso added by G.O.Ms. No. 317, Rev. (CT-II), dt. 14-03-2006.
1161
(3)
The return in Form VAT 200 of Form TOT 007 shall be accompanied by a receipt from Government treasury or a crossed demand draft or
a crossed cheque drawn on the local bank in the State in favour of the authority
prescribed. A local bank for this purpose shall be a bank located at the place of
business declared for registration.
(4)
Where any VAT dealer or TOT dealer submits a Form VAT 200 or
Form 007 without a receipt from Government treasury or demand draft or a
cheque for the full amount of tax payable, the authority prescribed shall send
a notice on Form VAT 202 or TOT 012 to the VAT dealer or to the TOT dealer for
the tax under paid. Such notice shall be deemed to be an assessment-cumdemand notice and the VAT dealer or TOT dealer shall pay the sum specified
in the notice within the time specified therein.
(5)
Where any dealer has been permitted to pay tax or any other
amount by way of instalments, the following conditions shall apply :
(a)
the dealer shall not default payment of any other taxes or any
other amount due under the Act subsequent to the granting of
instalments;
(b)
in the event of any default, the order granting instalments shall

become infructuous unless on application it is specifically
restored by the Deputy Commissioner;
(c)
any other conditions as may be specified in the order.
(6)
Where any VAT dealer has paid any Entry Tax and intence
to adjust such amount against VAT payable by him as specified in subsection (5) of section 22, he shall make a declaration on Form 503 and file
alongwith Form VAT 200 for the Tax period.
TAX DEDUCTION AT SOURCE (TDS)

[Section 22(4); Rule 17(3)(i), 18(1)(b); Form 501A]
Section 22 (4) : In case of 1[a dealer] executing works contract 2[for
Central Government or a Company] or a statutory body or an undertaking or
1.
Subs. for the words a VAT dealer by Act No. 10 of 2006, w.e.f. 24-11-2005.
2.
Subs. for the words for a company by Act No. 23 of 2005, w.e.f. 29-08-2005.
1162
an institution other than Government or local authority irrespective of the

quantum of value of the contract or for any other dealer or a firm where the
value of the contract exceeds Rs. 10,00,000/- (Rupees Ten lakhs only), a tax 1[at
the rate of four percent (4%)] shall be deducted from the amount payable to
him and such contractee deducting tax at source shall remit such amount in
the manner as may be prescribed.
Rule 17 (3)(i) : Where the contractee fails to remit such tax deducted
at source within fifteen days of the date of payment to the contractor, the
authority concerned shall be liable to pay penalty and interest for the delayed
payment.
Rule 18 (1) (b) : The contractee shall complete Form VAT 501A
supplied by the contractor indicating the TIN, the amount of tax
deducted and details of the related contract. The Contractor, VAT dealer shall
send the Form VAT 501A to the authority prescribed together with proof of
payment within fifteen days from the date of each payment made to the
contractor.
TAX COLLECTION AT SOURCE (TCS)

[Section 22(3); Rule 17(2)(d), 17(2)(h); Form 501]
Section 22 (3) : In the case of a dealer executing works contract for
Government or local authority, a tax at the rate of 4% shall be deducted from
the amount payable to him and such contractee deducting tax at source shall
remit such amount in the manner as may be prescribed.
Rule 17 (2)(d) : The contractee Government Department or
local authority shall complete Form VAT 501 supplied by the contractor
indicating the TIN of the contractor, the amount of tax collected at source
and details of the related contract. Such Form shall be provided to the
contractor.
Rule 17 (2)(h) : Where the contractee Government Department or
local authority fails to remit such tax collected at source within fifteen days of
the date of payment to the contractor, the authority concerned shall be liable
to pay penalty and interest for the delayed payment.
1.
Subs. for the words at the rate of 2% by Act No. 23 of 2005, w.e.f. 29-08-2005.
1163
ASSESSMENT
[Section 21; Rule 25; Forms VAT 204, VAT 305, VAT 305A,
TOT 010, TOT 025, TOT 025A]
Section 21. Assessments. (1) Where a VAT dealer or TOT dealer
fails 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) shall be withdrawn 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 four years of the date of filing of the return
whichever is later.
(4)
The authority prescribed may, based on any information
available or on any other basis, conduct a detailed scrutiny of the accounts of
any VAT dealer or TOT dealer and where any assessment as a result of such
scrutiny becomes necessary, such assessment shall be made within a period
of four years from the end of the period for which the assessment is to be
made.
(5)
Where any willful evasion of tax has been committed by a dealer,
an assessment shall be made to the best of his judgment by the authority
prescribed within a period of six years of date of filing of the return or the first
return relating to such offence.
(6)
The authority prescribed may reassess, where an assessment
was already made under sub-sections (1) to (5) and such assessment
understates the correct tax liability of the dealer, within a period of four years
from the date of such assessment.
(7)
Where any assessment has been deferred on account of any stay
order granted by the High Court or where an appeal or other proceedings is
pending before the High Court or Supreme Court involving a question of law
having a direct bearing on the assessment in question, the period during which
the stay order was in force or such appeal or proceedings was pending shall
be excluded in computing the period of four years or six years as the case may
be for the purpose of making the assessment.
1164
(8)
Where an assessment made has been set aside by any Court, the
period between the date of such assessment and the date on which it has been
set aside shall be excluded in computing the period of four years or six years
as the case may be, for making any fresh assessment.
Rule 25. Assessments. (1) Where a VAT dealer fails to file a VAT
return as prescribed under section 20, the authority prescribed shall assess
unilaterally the tax payable. The authority prescribed shall serve upon the
VAT dealer a notice of the tax assessed and the penalty due on Form VAT 204.
The VAT dealer shall pay the sum within the time and the manner specified
on the form or shall file the return outstanding. If the return is filed the
unilateral assessment shall be withdrawn, without prejudice to the penalty
under sub-section (3) of section 50 and interest due for late payment.
(2)
(a) A VAT unilateral assessment shall be made by totalling the
tax declared on the tax returns or paid by way of assessment during the
previous twelve months and by dividing the amount by twelve to arrive at
an average monthly liability for the previous twelve months. The average
shall be compared with the tax due declared on the last return filed. The
higher figure of the two shall be used for arriving at the tax for the purpose of
assessment. A penalty of fifty percent (50%) of that sum shall be levied.
(b)
In the case of a VAT dealer who has not been registered for a
period of twelve months, the amount declared in Box 16 (b) of
Form VAT 100 shall be divided by twelve to provide the basis for
the calculation of the average taxable turnover. The standard
rate of tax shall be applied to this amount to calculate the tax
liability. A penalty of fifty percent (50%) of that sum shall be
levied. In the case of a deemed registration under sub-rule (4) of
Rule 4, the total turnover declared on Form VAT 100 shall be
divided by twelve to provide the basis for the calculation of the
taxable turnover.
(c)
Where a credit return is filed in the previous twelve months

with the claim of credit carried forward in any tax period, the
credit carried forward shall be ignored for the calculation. Where
a return is filed in the previous twelve months with the claim of
refund in any tax period, the refund amount shall be deducted
from the total tax declared on the returns for calculation of the
taxable turnover under clause (a) or (b).
(d)
Where in the previous twelve months, credit or refund is claimed

in all the returns or a credit balance is arrived at, no unilateral
assessment shall be made.
1165
(3)
Where a TOT dealer fails to file a return as prescribed under
section 20, the authority prescribed shall assess the tax payable unilaterally.
The authority shall serve upon the TOT dealer a notice of the tax assessed and
a notice of the penalty due on Form TOT 010. The TOT dealer shall pay the
sum within the time and manner specified on the form or file the return
outstanding. If the return is filed the unilateral assessment shall be withdrawn
without prejudice to the penalty under sub-section (3) of section 50 and interest
due for late payment.
(4)
(a) TOT unilateral assessment shall be calculated by totaling the
tax declared on TOT returns or demanded and/or paid by way of assessment
for the previous twelve months. This sum shall be divided by four to provide
an average quarterly TOT liability. A penalty of fifty percent (50%) of that
sum shall be levied.
(b)
In the case of a TOT dealer who has not been registered for a
period of twelve months the amount declared in Box fourteen of
Form TOT 001 shall be divided by four to arrive at the average
taxable turnover. The turnover tax rate shall be applied to this
amount to calculate the TOT liability. A penalty of fifty percent
(50%) of that sum shall be levied.
(c)
In the case of a TOT dealer registered under the provisions of

sub-section 8 of section 17, the gross turnover declared for the
year ending 31st of March 2005 under the Andhra Pradesh General
Sales Tax, 1957 shall be divided by four to arrive at the average
taxable turnover for the purpose of this rule.
(5)
Where any VAT return filed by the VAT dealer appears to the
authority prescribed to be incorrect or incomplete that authority prescribed
shall assess the tax payable to the best of his judgment on Form VAT 305 after
affording a reasonable opportunity to the dealer in Form VAT 305A. He shall
serve upon the VAT dealer an order of the tax assessed, the penalty and interest
due on Form VAT 305. The VAT dealer shall pay the sum within the time and
manner specified on the notice.
(6)
Where any TOT return filed by the TOT dealer appears to the
authority prescribed to be incorrect or incomplete that authority shall assess
the tax payable to the best of his judgment on Form TOT 025 after affording
reasonable opportunity to the dealer on Form TOT 025A. He shall serve upon
the TOT dealer an order of the tax assessed, the penalty levied and interest due
on Form TOT 025. The TOT dealer shall pay the sum within the time and
manner specified on the notice.
1166
(7)
Where a dealer receives any amount due to price variations,
which have not been included in the return filed for that tax period, he shall
include the additional amount received and tax calculated at the rate applicable
in the return to be filed in the period in which the additional amounts are
received.
(8)
(a) For the purpose of section 53, the tax under declared in respect
of input tax means the excess of input tax claimed over and above the input
tax actually entitled to be claimed in the return for a particular tax period.
(b)
The tax under declared in respect of output tax means the

difference between output tax actually chargeable and the output
tax declared in the return for a particular tax period.
(c)
In respect of a TOT dealer the tax under declared means the

difference between the tax declared on Form TOT 007 and the tax
actually due by the dealer for the period.
(9)
Where any sales tax credit claimed under Rule 37 is found to be
in excess of the amount actually entitled, such amount shall be recovered
along with interest by assessing the VAT dealer.
ILLUSTRATION
(a)
VKM, a VAT dealer filed a return for tax period declaring input
tax as Rs. 10000/- and output tax as Rs. 5000/- and the net excess
tax of Rs. 5000/- was carried over to the next tax period. On
verification by the authority prescribed after 6 months, the
eligible input tax credit is found to be Rs. 8000/-. There was no
variation in output tax. The tax under-declared in respect of
input tax is Rs. 2000/- (Rs. 10000 Rs. 8000/-). The percentage of
under-declaration of tax is twenty five percent (25%) (2000 x100/
8000). Accordingly under-declared tax of Rs. 2000/- along with
penalty of Rs. 500/- i.e. twenty five percent (25%) and interest at
the rate of 1% for the period i.e. six months of delay is payable.
(b)
A VAT dealer filing a return declared input tax as Rs. 23000/and output tax as Rs. 77000/- and net tax of Rs. 54000/- was paid
along with the return. On verification by the authority prescribed
after four months it was found that there is no variation in the
eligible input tax declared in the return. However, the output tax
chargeable for that tax period was found to be Rs. 80000/- as
against the declared output tax of Rs. 77000/-. The tax under
declared in respect of output tax is Rs. 3000/- (i.e. Rs. 80000
1167
Rs. 77000). The percentage of under-declaration is 3.8% (3000X

100/80000). Now the dealer is liable to pay the under-declared
tax of Rs. 3000/- along with penalty of Rs. 300/- i.e. 10% and
interest at the rate of 1% for the delayed period of 4 months.
RECORDS
[Section 42; Rule 31]
Section 42. Records. (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
sub-section (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 audited by a Chartered Accountant or Cost Accountant or an
enrolled Sales Tax Practitioner for any tax period.
(4)
Records required to be maintained under sub-section (1) shall
be retained for a period of six years after the end of the year to which they
relate or where the assessment is subject matter of appeal or revision under
sections 31, 32, 33, 34 or 35, the records shall be retained for a period of six
years after the assessment has become final.
Rule 31. Records to be maintained by a dealer executing works

contracts. (1) Every dealer executing works contract shall keep separate
accounts for each contract specifying the particulars of the names and addresses
of the persons for whom he has executed works contracts.
(2)
Every dealer executing works contract and opting to pay tax by
way of composition shall maintain records of :
(a)
payments received from the contractee;
(b)
records of entry on Form VAT 200;
1168
(c)
records of tax collection at source or tax deduction at source made

from the payments received on the works contracts.
(3)
Every dealer executing works contract and not opting to pay tax
by way of composition shall keep the following records; namely :
(a)
the particulars of goods procured by way of purchase or

otherwise for the execution of works contract;
(b)
the particulars of goods to be used or used in the execution of

each works contract;
(c)
the details of payment received in respect of each works contract;
(d)
the details of :
(i)
labour charges for works executed;
(ii)
amount paid to sub-contractor for labour and services;
(iii)
(iv)

(v)
cost of consumables such as water, electricity, fuel etc., used

in the execution of the works contract the property in
which is not transferred in the course of execution of a
works contract;
(vi)

(vii)

services;
(viii) profit earned by the contractor to the extent it is relatable

(ix)
all amounts for which goods exempted under Schedule I

are transferred in execution of works contract;
(x)
turnover of goods involved in the execution of works

contract which are transferred in the course of inter-State
trade or commerce under section 3 of the Central Sales Tax
Act, 1956 or transferred outside the State under section 4
or transferred in the course of import or export under
section 5 of the said Act.
1169
OFFENCES AND PENALTIES

[Sections 49 to 58]
Section 49.Penalty for failure to register. (1) Any VAT dealer
who fails to apply for registration as required under section 17 before the end
of the month the application was due and applies during the subsequent month
shall be liable to pay a penalty of Rs. 5,000/- (Rupees Five thousand only).
(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 provisions 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 opportunity of being heard.
Section 50. Penalty for failure to file a return. (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 sub-section (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
Section 51. Penalty for failure to pay tax when due. (1) Where
a dealer who fails to pay tax due on the basis of the return submitted by him
1170
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 such 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 subsection (1) and subsequently it is found that the tax is not due, then such tax,
penalty and interest shall be refunded to that dealer.
Section 52.Penalty for assessment issued for failure to file a

return. (1) Where an assessment is made under the provisions of subsection (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 sub-section (3)
of section 50 and interest as applicable.
Section 53.Penalty for failure to declare Tax Due. (1) Where

any dealer has under declared tax, and where it has not been established
that fraud or wilful 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 is
established that fraud or willful neglect has been committed, he shall be liable
to pay penalty equal to the tax under declared; besides being liable for
prosecution :
Provided that before levying penalty under this section, the authority
1171
Section 54.Penalty for failure to use or misuse of TIN and

GRN. Any dealer who is registered under section 17 and 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 :
Provided that before levying penalty, the authority prescribed shall
give the dealer a reasonable opportunity of being heard.
Section 55.Penalty for issue of tax invoice and for the use of
false tax invoices. (1) Any VAT dealer, who fails to issue a tax invoice
or an invoice or a bill or cash memorandum as required by section 14 and
section 41 shall be liable to pay a penalty of Rs. 5,000/- (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
Section 56.Penalty for failure to maintain records. 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 a reasonable opportunity of being heard.
Section 57.Penalty for unauthorised / excess collection of

tax. (1) No dealer shall collect any sum by way of tax, in respect of sale or
purchase of any goods which are not liable to tax under 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.
1172
(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
sub-section (1) or sub-section (2) any sum so collected shall be forfeited either
wholly or partly to the Government and in addition he shall be liable to pay
a penalty of an amount equal to the amount of tax so collected :
Provided that the authority prescribed shall not levy penalty if it is
evident that due to bona fide mistake the dealer collected tax in contravention
of sub-section (1) or sub-section (2) and the tax so collected in excess has been
remitted to the Government along with the tax payable for that month :
Provided further that the authority prescribed shall while imposing
the penalty or forfeiture, take into consideration the amounts refunded to the
purchaser from out of the amounts collected, by way of tax in contravention
of sub-section (1) or sub-section (2) or for the refund of which satisfactory
arrangement has been made.
(5)
No order for the forfeiture under this section, shall be made after
the expiration of three years from the date of collection of the amount referred
to in sub-section (4) :
Provided that in computing the period of three years, the period during
which any stay order was in force or any appeal or other proceeding in respect
thereof was pending shall be excluded.
(6)
If the authority prescribed in the course of any proceeding under
the Act, or otherwise has reason to believe that any person has become liable
to penalty with or without forfeiture of any sum under sub-section (4) such
authority shall serve on such person a notice requiring him on a date and at a
place specified in the notice to attend and show cause why a penalty with or
without forfeiture of any sum as provided in sub-section (4) shall not be
imposed on him.
(7)
The authority prescribed shall thereupon hold an enquiry and
shall make such order as he thinks fit.
(8)
No prosecution for an offence under this section shall be instituted
in respect of the same facts on which a penalty has been imposed.
Section 58.Prosecution for Offences. Any dealer or person who

fails to comply with the requirements under sections 14, 16, 17, 21, 29, 42, 43,
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.
1173
TAX INVOICE / INVOICE

[Sections 14, 41; Rules 26, 27]
Section 14.Tax invoices. 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.
Section 41. Issue of Bills. 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.
Rule 26. Invoices. (1) The invoices, bills or cash memoranda

issued by any dealer other than a retail dealer shall be serially numbered for
each year and in the case of a dealer other than a retail dealer, each of such
invoice, bill or cash memorandum issued shall contain the following
particulars :
(a)
the full name, style and address of the business of the dealer
making the sale;
(b)
the Taxpayer Identification Number (TIN) or the General

Registration Number (GRN) of the dealer making the sale;
(c)
the full name, style and address of the business of the buying
dealer and General Registration Number (GRN), if registered as
a TOT dealer :
Provided that where the purchaser is a consumer, the invoice bill or

cash memoranda need not contain the full name and address of such purchaser.
(d)
The date on which the invoice is issued;
(e)
the description of the goods supplied;
(f)
the quantity or volume of the goods sold;
(g)
the total sale price.
Explanation. For the purpose of this sub rule, a retail dealer is a dealer
whether registered as a VAT dealer or as a TOT dealer making sales
1174
predominantly to consumers i.e. more than ninety percent (90%) of the total
sales.
(2)
Notwithstanding anything contained in sub-rule (1) the gate
pass-cum-invoice which a dealer registered under the Central Excise Act, 1944
(Central Act 1 of 1944) or under the rules made thereunder is obliged to
issue shall be deemed to have been issued under this Act provided such gate
pass-cum-invoice contains all the particulars mentioned in clauses (a) to (g) of
sub-rule (1).
Explanation. For the purpose of this sub-rule, any gate pass-cuminvoice issued for the removal of goods other than by way of sale shall not be
deemed to be an invoice for the purpose of sub-rule (1).
Rule 27. Tax Invoices. (1) A tax invoice specified in section 14 shall
contain the following particulars namely :
(a)
the words Tax Invoice written in a prominent place;
(b)
commercial name, address, place of business and TIN of the VAT

dealer making a sale;
(c)
commercial name, address, place of business and TIN of the VAT

dealer making the purchase;
(d)
the serial number of the invoice (printed or computer generated)

and the date on which invoices is issued;
(e)
the date of delivery of the goods;
(f)
the description of the goods supplied;
(g)
the quantity or volume of the goods sold;
(h)
the rate of tax for each category of goods;
(i)
the total value of the goods sold and tax related thereto, or the
VAT inclusive value of the goods sold and the statement that VAT
is included in the value at the appropriate rate.
(2)
An invoice issued under sub-rule (2) of Rule 26 shall be deemed to
be a tax invoice provided such invoice contains all the particulars specified in
sub-rule (1).
(3)
A VAT dealer who has not received a tax invoice may require the
VAT dealer, who has supplied the goods, to provide a tax invoice in respect of
the sale.

(4)
invoice.
1175
Input tax credit shall be claimed only against an original tax
(5)
The VAT dealer making a taxable sale shall retain one copy of the
tax invoice.
(6)
Where a purchasing VAT dealer loses the original tax invoice, the
seller shall provide a copy clearly marked copy in lieu of lost tax invoice
containing the following certificate.
I hereby declare that this is the duplicate of the tax invoice bearing
No., datedIssued tobearing TIN.
Date :
Signature :
(7)
A request for a tax invoice under sub-rule (6) of this Rule shall be
made within thirty days after the date of the sale.
(8)
A VAT dealer who receives a request under sub-rule (6) of this
Rule shall comply with the request within fourteen days after receiving that
request.
ONGOING CONTRACTS
[Section 68]
Section 68 : Ongoing contracts. (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.
1176
FORMS
APPLICATION FOR TOT REGISTRATION FORM TOT 001
[ See Rule 4 (2) ]
Submit in duplicate
Use separate sheets where space is not sufficient.
To
The Asst. Commercial Tax Officer,
_____________________ Circle.
Affix Passport Size

Photo of Sole
Proprietor. In case
of Partnership firm/
Companies/others
Affix photos of
responsible persons
on 001 B
01.
Name of the dealer :

APGST No. if any :
02.
Address of Place of business :
03.
Occupancy Status of the business premises :

Owned/Rented/Leased/Rent-free/Others
04.
Status of business : (Mark where applicable)

Sole Proprietorship
Partnership
Private Limited Company
Public Limited Company Govt. Enterprise Others (Specify)
05.
Name Residential address of the Name :

person responsible for business : Fathers/Husbands Name :
Date of Birth :
Door No.
Street
Locality
Town/City
District
Pin Code
Phone No
Fax No.
Email :
06.
Nature of Principal business

activities :
07.
Principal Commodities traded :
Door No :
Locality
District
Phone No :
Email :
08.
Bank Account Details :
Bank Name :
Branch & Code
1.
2.
Street
Town/City
Pin Code
Fax No :
Website/URL :
Account No.

09.
Income Tax
Permanent Account Number : (PAN)
10.
Address of additional places of

business/ Branches/Godowns in
A.P. Use form 001A
11.
Particulars of Partners/Directors/
Responsible person of the business :
Use form 001B
12.
Taxable Turnover of your business

for the last 12 consecutive months :
13.
Estimated taxable turnover of your

business for next 12 consecutive
months :
14.
Date on which taxable turnover

for 12 consecutive months exceeded
Rs. 5 lakhs
15.
Registration Number (if any

under Profession Tax Act)
1177
Declaration :
I ____________________________________ S/o _________________________
Status ________________________________ of the above enterprise hereby
declare that the particulars given are true and correct to the best of my
knowledged and belief. I under take to notify immediately to the registering
authority of any change in any of the above particulars.
Signature with Stamp.
Date of application
FOR OFFICE USE ONLY

16.
Date of receipt of application :
17.
Effective date of registration :
18.
Date of certification by Registering Authority :
19.
Date of refusal of registration by Registering Authority :
20.
General Registration Number :
1178
FORM TOT 001A
ADDRESSES OF ADDITIONAL PLACES OF BUSINESS/

BRANCHES/GODOWNS IN ANDHRA PRADESH
Name of the Dealer :
1)
Fill in the addresses of Additional Places of Business/Branches/
Godowns in the spaces provided for.
2)
Strike off Additional Places of Business/Branches/Godowns
whichever is not applicable.
ADDITIONAL PLACE OF BUSINESS/BRANCH/GODOWN

01. Address
____________________________________________________
___________________________________________________
___________________________________________________
Pin Code No:
Signature _________________
Telephone No:
Date ________________

02. Address
____________________________________________________
___________________________________________________
___________________________________________________
Pin Code No:
Signature _________________
Telephone No:
Date ________________

03. Address
____________________________________________________
___________________________________________________
___________________________________________________
Pin Code No:
Signature _________________
Telephone No:
Date ________________
1179

04. Address
____________________________________________________
___________________________________________________
___________________________________________________
Pin Code No:
Signature _________________
Telephone No:
Date ________________

05. Address
____________________________________________________
___________________________________________________
___________________________________________________
Pin Code No:
Signature _________________
Telephone No:
Date ________________

06. Address
____________________________________________________
___________________________________________________
___________________________________________________
Pin Code No:
Signature _________________
Telephone No:
Date ________________
1180
FORM TOT 001B
PARTICULARS OF PARTNERS/DIRECTORS/PERSONS
RESPONSIBLE (AUTHORISED) FOR THE BUSINESS
1)
Fill in the details for each Partner/Director/Responsible Person separately in the boxes provided for.
Please use BLOCK LETTERS and write clearly.
2)
Strike off Partners/Directors/Responsible Persons

Affix Passport size

Photo of
Partner/Director/
Person
Responsible
PARTNERS/DIRECTORS/PERSONS RESPONSIBLE DETAILS

1.
Full Name
2.
Fathers/Husbands Name
3.
Date of Birth
4.
Extent of interest in business (Partnership

firm) / Official Designation and date of joining
in the present capacity (in case of Directors in
Limited Companies)/Status & function of
Person Responsible (Authorised) for the
business.
5.
Other business interests in the State (Please

specify)
6.
Other business interests outside the State

(Please specify)
7.
Present Residential Address :

Telephone No :
e-mail :
8.
Permanent Address :
Telephone No.
9.
Income Tax Permanent Account Number

(PAN)
Signature
Date :
1181
Affix Passport size
Photo of
Partner/Director/
Person
Responsible
PARTNERS/DIRECTORS/PERSONS
RESPONSIBLE DETAILS
1.
Full Name
2.
Fathers/Husbands Name
3.
Date of Birth
4.
Extent of interest in business (Partnership

firm) / Official Designation and date of joining
in the present capacity (in case of Directors in
Limited Companies)/Status & function of
Person Responsible (Authorised) for the
business.
5.
Other business interests in the State (Please

specify)
6.
Other business interests outside the State

(Please specify)
7.
Present Residential Address :

Telephone No :
e-mail :
8.
Permanent Address :
Telephone No.
9.
Income Tax Permanent Account Number

(PAN)
Signature
Date :
1182
FORM TOT 007
RETURN OF TURNOVER TAX (QUARTERLY)

[ See Rule 23 (2) ]
01. Tax Office Address :
........................................................
.......................................................
...................................................
03.
Date
Month
Year
02 GRN
Period covered by Return

From
04.
To
Name :
Address :
05.
Taxable Turnover for the period mentioned at Sl. No : 03 above
06.
Turnover tax @ 1%
07.
Adjustments, if any, with details :
08.
Payment to be made
09.
Details of payment :
Challan/
Instrument No.
10.
Date
Bank/Treasury
Branch Code
Amount
Declaration
Name ___________________________________ S/o / D/o ________________

being (title) ___________________________________________ of the above
enterprise do hereby declare that the information given on his documents
is true and correct.
Signature & Stamp __________________ Date of declaration _____________
1183
Please Note :
This return shall be filed quarterly along with tax due on or before end of the
month following the quarter ending June, September, December and March
of every year.
FOR OFFICE USE ONLY :
Amount of TOT paid Rs. _________________ Date of Receipt _____________
Instrument of payment.
Signature of Receiving Officer with stamp.
1184

GOVERNMENT OF ANDHRA PRADESH
COMMERCIAL TAXES DEPARTMENT
FORM TOT 010
UNILATERAL ASSESSMENT FOR FAILURE

TO FILE A TOT RETURN
[ See Rule 25 (3) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 GRN
03. Name _______________________________________________________

Address :_____________________________________________________
_____________________________________________________
There is no record of the receipt in the Tax Department of your TOT Return
for the quarter year ending __________ due by __________ .
The Tax Office has accordingly unilaterally assessed the tax payable by you
for this period as _____________ . In addition the law requires that you pay
______ % of this amount as a penalty _____________
Total due to the Tax Office Rs. _____________
This tax must be paid by __________ unless you file the tax Return that is
due and pay the tax declared on the return. If you file the outstanding return
in the Tax Office and pay the tax due by _____________, this unilateral
assessment will be withdrawn.
IF YOU HAVE ALREADY FILED A RETURN AND PAID THE TAX DUE YOU
SHOULD NOTIFY THE TAX OFFICE WITHOUT DELAY.
Failure to make payment of this unilateral assessment will result in collection
measures being taken as provided for in the APVAT Act 2005.
DO NOT ADJUST ANY FUTURE TOT RETURN TO ACCOUNT FOR THE
TAX SHOWN ON THIS NOTICE OF ASSESSMENT.
DY. COMMERCIAL TAX OFFICER,
_________________ CIRCLE,
_______________ DIVISION.
Note: Complete in duplicate.

1185
FORM TOT 025
ASSESSMENT OF TURNOVER TAX

[ See Rule 25 (6) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 GRN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
Following examination of your records on __________________________
and the issue of Form TOT 025A on ________________ the correct amount of
TOT under the provisions of APVAT Act 2005 has been established as follows.
* This has resulted from :
1.
Your agreement at the time of visit on _______________
2.
After consideration of your reply received in this office on ___________
3.
Your failure to respond to the notice issued on Form TOT 025A on

__________
The total amount payable by you is explained below :

Period Parti(Quar- culars
of tax
ter
ending)
Tax declared
/net credit
claimed
Tax
Tax under Penalty Interest Total Due
Tax
Found to Over
declared ......... % @ 1%
to Tax
be due/ declared Due to Tax
of .....
Departnet credit Due to
Departmonth(s)
ment
due
ment
dealer
Total amount due to Tax Department
1186

See reverse for explanation
Complete in duplicate.
* Delete as appropriate
Explanation of the above proposals :
* A The amount of ______________ shall be paid within 30 days of receipt of
this order.
Failure to make the payment will result in recovery proceedings under
the APVAT Act 2005.
* B Your refund claim is reduced to ____________ and this amount will be
refunded to you.
THE PAYMENT OF THE AMOUNT SPECIFIED AT A ABOVE MUST BE
MADE TOGETHER WITH DUPLICATE COPY OF THIS ORDER AND
PAYMENT BOXES ON THAT COPY COMPLETED.
An appeal against this order can be filed before the Appellate Deputy
Commissioner within 30 days of receipt of this order.
DY . COMMERCIAL TAX OFFICER,

______________ CIRCLE.
ON DUPLICATE COPY OF THE ORDER
Payment details :
Challan/
Instrument No.
Date
Bank/Treasury
Branch Code
Amount

1187
FORM TOT 025A
NOTICE OF ASSESSMENT OF TURNOVER TAX

[ See Rule 25 (6) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 GRN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
Examination of your records on _________ has shown that the correct

amounts of Turnover Tax have not been declared in the TOT returns listed
below. Under the provisions of APVAT Act 2005 the following tax amounts
are proposed to be assessed for the tax period shown below.
Period Parti(Quar- culars
of tax
ter
ending)
Tax declared
/net credit
claimed
Tax
Tax under Penalty Interest Total Due
Tax
Found to Over
declared ......... % @ 1%
to Tax
be due/ declared Due to Tax
of .....
Departnet credit Due to
Departmonth(s)
ment
due
ment
dealer
Explanation for the above proposals :
If you have any objections to the assessment proposed above, you are
requested to file written objections along with documentary evidence if any,
within 7 days of date of this notice failing which orders will be passed without
any further notice in the matter.
DY. COMMERCIAL TAX OFFICER,
________________ CIRCLE.
1188
FORM VAT 100
APPLICATION FOR VAT REGISTRATION

[ See Rule 4 (1) ]
Submit in duplicate
Use separate sheet where space is not sufficient.
Affix Passport Size

Photo of Sole
Proprietor. In case
Partnership firm/
Companies/others
Affix photos of
responsible persons
on VAT 100B
To
The Commercial Tax Officer,
VAT Registering Authority,
_____________________ Circle.
01.
Name of the business to be registered :
02.
Address of Place of business :
03.
Occupancy Status : Owned/Rented/Leased/Rent-free/Others
04.
Name & Address of the

Owner of business
(Residential Address of the
Person responsible ie., Managing
Partner/Managing Director
for business).
05.
Door No :
Locality
District
Phone No :
Email :
Street
Town/City
Pin Code
Fax No :
Website/URL :
Name :
Date of Birth :
Door No.
Locality
District
Phone No.
Email :
Street
Town/City
Pin Code
Fax No.
Status of business : (Mark where applicable)
Sole Proprietorship
Public Ltd Company
Partnership
Govt. Enterprise
06.
Nature of Principal business activities :
07.
Principal Commodities traded :
08.
Bank Account Details :
Bank Name :
Branch & Code
1.
2.
3.
Private Limited Co.,

Other (Specify)
Account No.
1189
09.
Income Tax Permanent Account Number : (PAN)
10.
Address of additional places of business/Branches/Godowns

(including those outside A.P) : Use form VAT 100A
11.
Particulars of owner/Partners/Directors etc., :

Use Form VAT 100B
12.
Language in which books are written :
13.
Are your accounts computerised :
YES
NO
14.
Date of first taxable sale
Month
Year
15.
Turnovers of taxable sales of goods including zero rate in :

(a)
The last 3 months : Rs.
(b)
The last 12 months : Rs.
16.
Anticipated turnovers of taxable sales of goods including zero rate in :

(a)
The next 3 months Rs.
(b)
The next 12 months Rs.
17.
Anticipated Turnover of exempted sales of goods and

transactions in the next 12 months
18.
Are you applying for voluntary registration : YES
NO
19.
Are you applying for registration as

Start up Business :
YES
NO
20.
Indicate your GRN Number, if any :

Have you applied for CST Registration
YES
NO
Date
21.
Registration Number (if any Under Profession Tax Act) :
22.
Do you expect your input tax to

regularly exceed your output tax ?
If yes Why ?
23.
YES
Are you applying for registration in response to

a notice by the Tax Officer ?
YES
If yes, indicate the Notice number.
NO
NO
24.
Any other relevant information like are you availing Tax incentives ?
If so write details.
Declaration :
I ________________________________________ S/o ________________
Status __________ of the above enterprise hereby declare that the particulars
given are correct and true to the best of my knowlede and belief. I undertake
to notify immediately to the registering authority in the Commercial Taxes
Department of change in any of the above particulars.
Date of application
Signature with Stamp
1190
FOR OFFICE USE ONLY

25.
Date of receipt of application
26.
Activity / Commodity Code
27.
Exempt Indicator
28.
Voluntary Registration Indicator
29.
Start up Business Indicator
30.
CST Indicator
31.
Refund Indicator
32.
Works Contract Indicator.
33.
Suo motu Registration Indicator.
34.
Special Rates Schedule - VI

goods Indicator
35.
Tax Incentives Indicator
36.
Date of issue of Registration Certificate
37.
Effective date of Registration
38.
Date of refusal of Registration
39.
Taxpayer Identification Number (TIN) :
Processing Authority
Registering Authority
Name
Name
Designation
Designation
IMPORTANT :
(a)
Copy of Proof of Identity of the sole Proprietor / Managing Partner /

Managing Director / responsible person for the business like copy of
Passport, voter Identity card, Proof of Bank Account, Credit Card, Ration
Card, Driving License etc., must be enclosed.
(b)
Please fill in and enclose Form VAT 100A and 100B if found necessary.
25 to 39 : For Office use only.
1191
FORM VAT 100A
ADDRESSES OF ADDITIONAL PLACES OF BUSINESS/

BRANCHES/GODOWNS IN ANDHRA PRADESH
Name of the business :_____________________________________________
01. Address
_____________________________________________________
_____________________________________________________
_____________________________________________________
Pin Code No:

Signature ___________________
02. Address
Telephone No:
Date _______________
_____________________________________________________
_____________________________________________________
_____________________________________________________
Pin Code No:

Signature ___________________
03. Address
Telephone No:
Date _______________
_____________________________________________________
_____________________________________________________
_____________________________________________________
Pin Code No:

Signature ___________________
Telephone No:
Date _______________
Note :- Please see overleaf to fill in the details for Addresses of Branch/
Godowns located outside Andhra Pradesh.
1192
ADDRESSES OF BRANCHES/GODOWNS LOCATED OUTSIDE

ANDHRA PRADESH
01. State
Address
_____________________________________________________
____________________________________________________
_____________________________________________________
_____________________________________________________
Pin Code No:
Telephone No:
R.C. Number under State Act :

R.C. Number under C.S.T. Act :
Signature ___________________
02. State
Address
Date _______________
_____________________________________________________
____________________________________________________
_____________________________________________________
_____________________________________________________
Pin Code No:
Telephone No:

Signature ___________________
03. State
Address
Date _______________
_____________________________________________________
____________________________________________________
_____________________________________________________
_____________________________________________________
Pin Code No:
Telephone No:

Signature ___________________
Date _______________
1193
FORM VAT 100B
PARTICULARS OF PARTNERS/
DIRECTORS/PERSONS RESPONSIBLE
(AUTHORISED) FOR THE BUSINESS
Name of the Business :
1) Fill in the details for each Partner/Director/
Responsible Person separately in the boxes provided
for. Please use BLOCK LETTERS and write clearly.
Affix Passport size

Photo of
Partner/Director/
Person
Responsible
2) Strike off Partners/Directors/Responsible Persons

PARTNERS/DIRECTORS/PERSONS RESPONSIBLE DETAILS
1. Full Name
2. Fathers/Husbands Name
3. Date of Birth
4. Extent of interest in business (Partnership firm) /
Official Designation and date of joining in the
present capacity (in case of Directors in Limited
Companies)/Status & function of Person
Responsible (Authorised) for the business.
5. Other business interests in the State (Please
specify)
6. Other business interests outside the State (Please
specify)
7. Present Residential Address :
Telephone No :
e-mail :
8. Permanent Address :
Telephone No.
9. Income Tax Permanent Account Number (PAN)
Date :
Signature & Status
1194
Affix Passport size

Photo of
Partner/Director/
Person
Responsible
PARTNERS/DIRECTORS/PERSONS
RESPONSIBLE DETAILS
1. Full Name
2. Fathers/Husbands Name
3. Date of Birth
4. Extent of interest in business (Partnership firm) /
Official Designation and date of joining in the
present capacity (in case of Directors in Limited
Companies)/Status & function of Person
Responsible (Authorised) for the business.
5. Other business interests in the State (Please
specify)
6. Other business interests outside the State (Please
specify)
7. Present Residential Address :
Telephone No :
e-mail :
8. Permanent Address :
Telephone No.
9. Income Tax Permanent Account Number (PAN)
Date :
Signature & Status
MONTHLY RETURN FOR VALUE ADDED TAX
1195
FORM VAT 200
[See Rule 23 (1) ]

01
02
TIN
Period covered by this Return
From DD MM YY To DD MM YY
03
Name of Enterprises : _______________________________________

Address: __________________________________________________
__________________________________________________________
__________________________________________________________
Fax No. ____________________
Phone No. _________________
If you have made no purchases and no sales, corssthis box.
04
If you have no entry for a box, insert NIL. Do not leave any
box blank unless you cross box 04.
Input tax credit from previous month
(Box 24 or 24(b) of your previous tax return)
PUCHASES IN THE MONTH (INPUT)
05
Value excluding VAT
VAT Claimed
(A)
(B)
6 Exempt or non-creditable Purchases
Rs.
7 4% Rate Purchases
Rs.
Rs.
8 12.5% Rate Purchases
Rs.
Rs.
9 1% Rate Purchases
Rs.
Rs.
1 0 Special Rate Purchases
Rs.
1 1 Total Amount of input tax (5+7(B)+8(B)+9(B))
SALES IN THE MONTH (OUTPUT)
Rs.
Value Excluding VAT
VAT Due
(A)
1 2 Exempt Sales
(B)
Rs.
1 3 Zero Rate Sales - International Exports
Rs.
1 4 Zero Rate Sales - Others (CST Sales)
Rs.
1 5 Tax Due on Purchase of goods
Rs.
Rs.
1 6 4% Rate Sales
Rs.
Rs.
1 7 12.5% Rate Sales
Rs.
Rs.
1 8 Special Rate Sales
Rs.
Rs.
1 9 1% Rate Sales
Rs.
Rs.
2 0 Total amount of output tax (15(B)+16(B)+

17(B)+19(B))
2 1 If total of box 20 exceeds box 11 pay this amount
Rs.
Rs.
1196
22
Payment Details:
Details
Challan/
Instrument
No.
Date
Bank/
Treasury
Branch
Code
Amount
Payment Details :
Adjustment (Give
Details in 22 (a))
Total
22(a) Adjustment Details :

Nature of Adjustment
Details
Amount
If total of box 11 exceeds total of box 20 (or the payment and adjustment in
boxes 22 and 22(a) put together exceed the tax due in box 21) and you have
declared exports in box 13 (A) and not adjusting the excess amount against
tax liability if any under the CST Act, you can claim a refund in box 23 or
carry a credit forward in box 24.
If you have declared no exports in box 13 (A) you must carry the credit
forward in box 24, unless you have carried forward a tax credit and not
adjusting the excess amount against the tax liability if any under the CST
Act.
Refund 23 Rs.
Credit carried forward
24(a) If you want to adjust the excess amount

against the liability under the CST Act please
fill in boxes 24 (a) and 24 (b) Tax due under the
CST Act and adjusted against the excess
amount in box 24.
24(b) Net credit carried forward
24 Rs.
24(a)
Rs.
24(b)
Rs.
Declaration :
25. Name ............................................ being (title) .......................................... of the
above enterprise do hereby declare that the information given in this
return is true and correct.
Signature & Stamp .......................
Date of declaration ............................
1197
Please Note :
1.
This return and payment must be presented on or before 20th day of the
following month mentioned in box 02.
2.
In case the payment is made by a challan in the bank, please endorse a

copy of the same.
3.
You will be, as per provisions of the APVAT Act, 2005, subject to
penalties if you :
Fail to file the VAT return at the Local Tax Office even if it is a nil
return.
-
Make a late payment of tax
Make a false declaration.

FOR OFFICIAL USE ONLY
Date of Receipt :
Amount of Tax Paid Rs.
Mode of Payment :
Signature of Receiving Officer
with Stamp
1198
ANNEXURE TO MONTHLY VAT RETURN

FOR ADJUSTMENT OF INPUT TAX CREDIT
FORM VAT 200A
[ See Rules 20(6), 7, 8(b), 9(b) ]

This Form is to be filled up by VAT dealer having any of the following transactions,
(a) Sales of exempt goods (goods mentioned in Schedule I);
(b) Stock transfers / consignment sales.
01
02
TIN
(i) Details of Turnovers in the tax period
03Amount of taxable sales - Sum of boxes 13A, 14A, 16A, 17A & 19A of VAT 200
04Amount of sales of exempt goods in the period
05Amount of exempt transactions in the period
Rs.
Rs.
Rs.
(ii) Details of Input tax paid, input tax credit claimed in the tax period
Inputs
VAT paid on VAT paid on

specific
common
inputs (x)
inputs
ITC eligible
on common
inputs (y)
Total ITC
claimed
(x) + (y)
06
1% rate purchases
Rs.
Rs.
Rs.
07
4% rate purchases
Rs.
Rs.
Rs.
08
12.5% rate
Rs.
Rs.
Rs.
(4% portion)
4/12.5 x value *
(8.5% portion)
8.5/12.5 x value *
* APPORTION 12.5% INTO 4 AND 8.5 PORTIONS ONLY IF YOU HAVE EXEMPT
TRANSACTIONS
1. Note : To claim eligible input tax credit (ITC eligible) for tax rates of 1%, 4%
and 4% portion of 12.5%, the following calculation is to be made :
A x B where A is value of common input for each tax rate
C
B is value in box (03)
C is the sum of box (03), (04) and box (05)
2. Note : Where there are no exempt transactions in the tax period, apply the
above formula for entire 12.5% for arriving at ITC eligiblity.
3. Note : Where exempt transactions are made in the tax period, total 8.5%
portion of 12.5% can be taken as ITC.
Date :
Signature of Dealer
1199
FORM VAT 200B
ANNEXURE TO VAT RETURN FOR THE MONTH OF

MARCH FOR THE 12-MONTH PERIOD ENDING
MARCH FOR ADJUSTMENT OF INPUT TAX CREDIT
[ See Rules 20(4)(b), 5(c), 6, 7, 8(b), 9(b) ]
01
02
TIN

03Amount of taxable sales - Sum of boxes 13A, 14A, 16A, 17A & 19A of VAT 200
Rs.
Rs.
Rs.
Inputs

specific
common
inputs (x)
inputs
ITC eligible
on common
inputs (y)
Total eligible
ITC
(x) + (y)
06
1% rate purchases
Rs.
Rs.
Rs.
07
4% rate purchases
Rs.
Rs.
Rs.
08
12.5% rate
Rs.
Rs.
Rs.
(4% portion)
4/12.5 x value *
(8.5% portion)
8.5/12.5 x value *
TRANSACTIONS
A X B where A is value of common input for each tax rate
C
1200
above formula for entire 12.5% for arriving at ITC eligiblity.
3. Note : To claim eligible input tax credit (ITC eligible) for tax rates of 8.5%
portion of 12.5%, the following calculation is to be made :
C
B is sum in box (03) and (05)
(iii) Excess or balance Input tax credit for each tax
rate payable or eligible for the 12-month period ending March
Common inputs
(2)
ITC claimed in
the 12 monthly
returns
ITC eligible as
per (ii)
(3) and (4) Excess (+) /
Difference between
(4)
Balance ()
(3)
(5)
09
1% rate purchases
Rs.
Rs.
Rs.
10
4% rate purchases
Rs.
Rs.
Rs.
11
12.5% rate purchases
Rs.
Rs.
Rs.
1. Any excess credit claimed in the monthly returns shall be paid back in the
return for March by adding it to the appropriate box in the output column
for the tax rate.
2. Any balance credit eligible in the monthly returns shall be claimed in the
return for March by adding it to the appropriate box in the input column
for the tax rate.
Date :
Signature of Dealer
1201
FORM VAT 200E
ANNEXURE TO MONTHLY VAT RETURN FOR

ADJUSTMENT OF INPUT TAX CREDIT
[ See Rules 20(12) ]
(c) Turnover under composition.
(d) Exempt turnover of sub-contract under Rule 17(2)(j)
01
02
TIN

03Amount of taxable sales - Sum of boxes 13A, 14A, 16A, 17A & 19A of VAT 200 (for box 16A,
exclude turnover under composition)
06Total turnover under composition
07Exempt turnover of sub-contract under Rule 17(2)(j)
Rs.
Rs.
Rs.
Rs.
Inputs

specific
common
inputs (x)
inputs
ITC eligible
on common
inputs (y)
Total ITC
claimed
(x) + (y)
08
1% rate purchases
Rs.
Rs.
Rs.
09
4% rate purchases
Rs.
Rs.
Rs.
10
12.5% rate
Rs.
Rs.
Rs.
(4% portion)
4/12.5 x value *
(8.5% portion)
8.5/12.5 x value *
TRANSACTIONS
1202
C
C is the sum of box (03), (04), (05), (06)
and (07)
above formula for entire 12.5% for arriving at ITC eligible.
portion of 12.5%, can be taken as ITC.
Date :
Signature of Dealer
1203
FORM VAT 200F
ANNEXURE TO VAT RETURN FOR THE MONTH OF

MARCH FOR THE 12 - MONTH PERIOD ENDING MARCH
FOR ADJUSTMENT OF INPUT TAX CREDIT
[ See Rules 20(12) ]
(c) Turnover under composition.
(d) Exempt turnover of sub-contract under Rule 17(2)(j)
01
02
TIN
(i) Details of Turnovers in the 12 - month period

03Amount of taxable sales - Sum of boxes 13A, 14A, 16A, 17A & 19A of VAT 200 (for box 16A,
exclude turnover under composition)
04Amount of sales of exempt goods in the 12- month period
05Amount of exempt transactions in the period in the
12- month
06Total turnover under composition
07Exempt turnover of sub-contract under Rule 17(2)(j)
Rs.
Rs.
Rs.
Rs.
Inputs

specific
common
inputs (x)
inputs
ITC eligible
on common
inputs (y)
Total ITC
claimed
(x) + (y)
08
1% rate purchases
Rs.
Rs.
Rs.
09
4% rate purchases
Rs.
Rs.
Rs.
10
12.5% rate
Rs.
Rs.
Rs.
(4% portion)
4/12.5 x value *
(8.5% portion)
8.5/12.5 x value *
TRANSACTIONS
1204
C
C is the sum of box (03), (04), (05), (06)
and (07)
above formula for entire 12.5% for arriving at ITC eligible.
portion of 12.5%, can be taken as ITC.
C
B is sum in box (03) and (05)
C is the sum of box (03), (04), (05), (06)
and (07)
(iii) Excess or balance Input tax credit for each tax
rate payable or eligible for the 12-month period ending March
Common inputs
(2)
ITC claimed in
the 12 monthly
returns
ITC eligible as
per (ii)
(3) and (4) Excess (+) /
Difference between
(4)
Balance ()
(3)
(5)
11
1% rate purchases
Rs.
Rs.
Rs.
12
4% rate purchases
Rs.
Rs.
Rs.
13
12.5% rate purchases
Rs.
Rs.
Rs.
1. Any excess credit claimed in the monthly returns shall be paid back in the
return for March by adding it to the appropriate box in the output column
for the tax rate.
2. Any balance credit eligible in the monthly returns shall be claimed in the
return for March by adding it to the appropriate box in the input column
for the tax rate.
Date :
Signature of Dealer

1205
FORM VAT 204
UNILATERAL ASSESSMENT FOR

FAILURE TO FILE A VAT RETURN
[ See Rule 25 (1) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
There is no record of the receipt in the Tax Department of a VAT Return for
the period of ___________ due by _______________
The Tax Office has accordingly unilaterally assessed the tax payable by you
for this period as Rs. _________________. In addition the law requires that
you pay 50% of this amount as penalty which is Rs. ________________
Total tax due is Rs. _________________
This amount must be paid by _________________ unless you file the tax
Return that is due and pay the tax declared on the return. If you file the
outstanding return at the Tax Office and pay the tax due by ______________
this unilateral assessment will be withdrawn.
IF YOU HAVE FILED A RETURN AND PAID THE TAX DUE YOU SHOULD
NOTIFY THE TAX OFFICE WITHOUT DELAY.
Failure to make payment of this unilateral assessment will result in recovery
measures being taken as provided for in the AP VAT Act 2005.
DO NOT ADJUST ANY FUTURE VAT RETURN TO ACCOUNT FOR THE TAX
SHOWN ON THIS NOTICE OF ASSESSMENT.
COMMERCIAL TAX OFFICER,
______________ CIRCLE,
_______________ DIVISION.
Note :- Complete in duplicate.
1206
FORM VAT 213
APPLICATION FOR UNDER / OVER

DECLARATION OF VALUE ADDED TAX
[ See Rule 23 (6) (a) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
Examination of my records has shown that the correct amount of Value
Added Tax in the return for tax period _____________ was* declared / overdeclared. Please find a true and correct summary of my monthly Return as
below. The errors were caused by
________________________________________________________________
Tax Period Input Tax
declared
Output Tax
declared
Input Tax Output Tax

found to found to be
be correct
correct
Tax Under
/ Over declared
Total Amount
Payable /
Creditable
I (Name) __________________________ being (Title) ___________________

of the above business do hereby declare that the information given on this
form is true and correct.
________________ Signature / Stamp
Date of Declaration ___________
PLEASE DO NOT ADJUST ANY FUTURE RETURN FOR THE TAX SHOWN
ON THIS FORM.
Complete in Duplicate.
Signature & Status
* Strike off which ever is not applicable
1207
FORM VAT 225
ANNEXURE TO MONTHLY VAT RETURN

[See Rule 23 (8)]
Return to be filled by VAT Dealers for special category of goods notified
by the Commissioner of Commercial Taxes / required by the
Dy. Commissioner (CT) concerned
Date

........................................................
.......................................................
...................................................
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
04Period
05
Sl.
from
to
Purchases in the period
Name of the
TIN No
Dealer
from
No.
whom purchased
Invoice No
Value
Date
Commodity
Purchase
Value
Signature of VAT Dealer / Authorised person and status
1208
FORM VAT 250

APPLICATION OPTING FOR
PAYMENT TAX BY WAY OF COMPOSITION
[ See Rules 17 (3) (c), 17 (4) (b), 17 (2) (b) & 19 (5) ]
Date

........................................................
.......................................................
...................................................
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
I/We carrying on business as a*works contractor / as a hotelier do hereby
apply to pay sales tax by way of composition.
* (i) At the rate of 4% on the total value of the contract executed for the
Government or local Authority subject to such conditions as may be
prescribed.
* (ii) At the rate of 4% on 50% of the total consideration received or receivable
for the contract other than State Government and local authorities
subject to such conditions as may be prescribed.
* (iii) At the rate of 4% on 25% of the consideration received or receivable
or the market value fixed for the purpose of stamp duty whichever is
higher, for the contract of constructing and selling of residential
apartments, houses, buildings or commercial complexes subject to such
conditinons as may be prescribed.
* (iv) At the rate of 12.5% on 60% of the total consideration charged for
food and drink to such conditions as may be prescirbed.
The details of contracts for which composition is opted for are given below :
Sl. No. Name & Address of the
Contractee
Nature of
Contract
Date of
Contract
Full value of the

Contract
Signature of the Dealer,

Stamp and Seal
(* Strike off whichever is not applicable)
1209
FORM VAT 250A
APPLICATION FOR WITHDRAWAL FOR PAYMENT OF

TAX BY WAY OF COMPOSITION
[See Rules 17 (3) (c), 17 (4) (c) & 19 (5)]

........................................................
.......................................................
...................................................
Date
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
I / We carrying on buisnes as works contractor * involving contract to other
than Government and local authorities / construction and selling of residential
apartments, houses, buildings or commercial complexes etc., / hotelier, have
opted for composition scheme for payment of tax vide my application in
Form VAT 250 Dated ____________ and am/are accordingly paying the taxes
regularly.
I / We intend to withdraw the option of composition wiht effect from
__________ (last day of the month) which may please be accepted.
From __________ (First day of the month) onwards I / We shall be accounting
the VAT taxes due under the provisions of Section ____ of APVAT Act 2005.
Signature of the Dealer
Stamp and Seal
(* Strike off whichever is not applicable)
1210

FORM VAT 305
ASSESSMENT OF VALUE ADDED TAX

[ See Rule 25 (5) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
Upon examination of your records on ______ and the issue of Form VAT 305
A on _________ the correct amount of VAT under the provisions of APVAT
Act 2005 has been determined as follows.
*
1.
2.
3.
This has resulted from :

Your agreement at the time of visit on _______________
After consideration of your reply received in this office on ______________
Your failure to respond to the notice issued on Form VAT 305 A on _________
The total amount payable by you is explained below:
Tax Particulars Tax

Tax
Tax
Tax
Penalty Interest Total
period (input tax/ declared Found to
Over
under
@ 1 % Due to
..... %
Tax
output tax) / net
be due/ declared declared
of .....
credit/ net credit Due to
Due to
month(s) Department
Or
Or
dealer
Tax
Refund
Refund
Department
Claimed
due

*Delete as appropriate
1211

* A The amount of ______________ shall be paid within 30 days of receipt
of this order. Failure to make the payment will result in recovery
proceedings under the APVAT Act 2005.
* B Your refund claim is reduced to _____________ and this amount will
be refunded to you.
THE PROOF OF PAYMENT OF THE AMOUNT SPECIFIED AT A ABOVE
TOGETHER WITH DUPLICATE COPY OF THIS ORDER AND PAYMENT
BOXES COMPLETED SHALL BE SUBMITTED WITHIN THE SPECIFIED TIME
LIMIT.
An appeal against this order can be filed before the Appellate Deputy
Commissioner within 30 days of receipt of this order.
Commercial Tax Officer,
_____________ Circle.
ON DUPLICATE COPY OF THE ORDER
Payment details:
Challan/
Instrument No.
Date
Bank/Treasury
Branch
Code
Amount
1212

FORM VAT 305A
NOTICE OF ASSESSMENT OF VALUE ADDED TAX

[ See Rule 25 (5) ]
........................................................
.......................................................
...................................................
Date
Month
Year
02 TIN
03. Name _______________________________________________________

Address: _____________________________________________________
_____________________________________________________
Examination of your records on ________ has shown that the correct amounts
of Value Added Tax have not been declared in the VAT returns listed below.
Under the provisions of APVAT Act 2005 the following tax amounts are
proposed to be assessed for the tax periods shown below.
Tax Particulars Tax
Tax
Tax
Tax
Penalty Interest Total
period (input tax/ declared Found to
Over
under
..... %
@ 1 % Due to
Tax
output tax) / net
be due/ declared declared
of .....
credit/ net credit Due to
Due to
month(s) Department
Or
Or
dealer
Tax
Refund
Refund
Department
Claimed
due

If you have any objections to the assessment proposed above, you are
requested to file written objections along with documentary evidence if any,
within 7 days of date of this notice failing which orders will be passed without
any further notice in the matter.
COMMERCIAL TAX OFFICER,
_____________ CIRCLE.
1213
FORM VAT 501
CERTIFICATE OF TAX COLLECTION AT SOURCE

[ See Rule 17 (2) (d) & (2) (f) ]
01. Office Address:

......................................................
.......................................................
.................................................
03.
Date
Month
Year
02 TIN
Name : ___________________________________________________
Address : _________________________________________________
_________________________________________________________
I/We _____________________________ certify that a sum of Rs. ___________

was collected being the amount payable by M/s. ________________________
towards Value Added Tax collected at the rate of 4% on the total value of the
contract and the amount has been paid to the sales tax (Major Head 040)
credit of Government of Andhra Pradesh.
04.
Date of the Contract / supply order
05.
Nature of Contract / Supply order
06.
Full Value of Contract / Supply order
07.
Bill No./ Voucher Cash Memo and Date
08.
Amount paid in the bill and Date of Payment
09.
Amount of Value Added Tax Collected @ 4% of

Col. 8 above
10
Remittance Particulars to the Government
Signature of the Officer / reason responsible for

Collection of amount / remittance to
Commercial Taxes Department with Seal
1214
FORM VAT 501A
CERTIFICATE OF TAX DEDUCTION AT SOURCE

[ See Rules 17 (1) (f), 17 (3) (e) & 18 (1) (b) ]
01. Office Address:

......................................................
.......................................................
.................................................
03.
Date
Month
Year
02 TIN
Name : ___________________________________________________
Address : _________________________________________________
_________________________________________________________
I/We _______________________ certify that a sum of Rs. _____________

was collected being the amount payable by M/s. ______________________
towards Value Added Tax deducted at the rate of 2% on the total value of the
contract and the amount has been / will be paid to the sales tax (Major Head
040) credit of Government of Andhra Pradesh.
04.
Date of the Contract / supply order
05.
Nature of Contract / Supply order
06.
Full Value of Contract / Supply order
07.
Bill No./ Voucher Cash Memo
08.
During the month / year
09.
Amount of Value Added Tax deducted
10.
Remittance Particulars
Signature of the Officer / Person responsible

for deduction of amount / remittance to
Commercial Taxes Department with Seal
1215
FORM VAT 503
DECLARATION OF A VAT DEALER FOR ADJUSTMENT OF

ENTRY TAX/OTHER TAX
[ See Rules 17 (1) (f), 17 (3) (e) & 18 (1) (b) ]
......................................................
.......................................................
.................................................
03.
Date
Month
Year
02 TIN
Name : ___________________________________________________
Address : _________________________________________________
__________________________________________________________
04.
Nature of adjustment
(Please Mark
05.
Entry Tax
others
on the appropriate Box)
Details of Payment :
Sl. Commodity Purchase Amount Payment Tax period Remarks

No.
Invoice No. of Entry mode Ch/ for which
& Date
Tax Paid DD/Cr. &
to be
Date
adjusted
06.
Declaration :
Name ________________________ S/o / D/o ___________________ being

(title) ____________________________________ of the above enterprise do
hereby declare that the information given on this documents is true and
correct.
Date of declaration _______________ Signature & Stamp _______________
1216
WORKS CONTRACT GOs / NOTIFICATION

1.
Refund of Tax to M/s. Hyderabad International Airport

Limited, Hyderabad under Andhra Pradesh Value Added Tax
Act, 2005.
G.O.Ms.No. 1254, Revenue (CT-II), Department,
dated 24-06-2005.
I.
In exercise of the powers conferred by sub-section (1) of section 15 of the Andhra Pradesh Value Added Tax Act, 2005, the
Governor of Andhra Pradesh, having found it necessary to do so
in the public interest, hereby directs that the tax paid :
(a)
By M/s. Hyderabad International Limited, Hyderabad on

its purchase of goods to the sellers and;
(b)
By the contractors and the sub-contractors if any engaged

by or for Hyderabad International Airport Limited, on their
purchases of goods to the sellers under the provisions of
the said Act shall be refunded to the respective purchasers,
subject to the following conditions :
CONDITIONS
1.
The Goods purchases by M/s. Hyderabad International Airport

Limited or its constrators or sub-contractors must be for use or
consumption in the execution of the project work of Hyderabad
International Airport, in Andhra Pradesh.
2.
M/s. Hyderabad International Airport Limited shall furnish a

separate declaration duly signed by the Managing Director or a
Senior Officer authorised by him in this regard to the effect that
the goods purchased by it are for use or consumption in the
execution of project work of Hyderabad International Airport,
for each tax invoice or invoice, in respect of which refund of tax
paid is claimed.
3.
Where the said contractors or sub-contractors make claim for

refund of the said tax paid, in addition to the tax invoices or
invoices received by them from their sellers, they shall furnish
the said declarationin respect of each such invoice, duly signed
1216
1217
by the said person on behalf of Hyderabad International Airport

Limited.
This Notification shall be deemed to have come into force with effect
from the first day of April 2005 and shall be in force till 31st December 2009, or
completion of the said project, whichever is earlier.
II.
In exercise of the powers conferred by sub-section (1) of

section 15 of the Andhra Pradesh Value Added Tax Act, 2005, the
Governor of Andhra Pradesh, having found it necessary to do so
in the public interest, hereby directs that the tax paid under
sub-section (7) of section 4 of the said Act, by M/s. Hyderabad
International Airport Limited, Hyderabad and the contractors
engaged by M/s. Hyderabad International Airport Limited for
execution of works contract relating to the project work of
Hyderabad International Airport in Andhra Pradesh, shall be
refunded as follows :
(a)
the said tax paid by M/s. Hyderabad International

Airport Limited to the contractors shall be refunded to
M/s. Hyderabad International Airport Limited on
production of proof of remittance of tax deducted at source
in accordance with sub-section (4) of section 22 of the said
Act, alongwith invoices issued by the contractors;
(b)
the said tax paid by the contractors to the subcontractors if any shall be refunded to the contractors on
production of proof of remittance of tax deducted at
source in accordance with sub-section (4) of section 22 of
the said Act, along with the invoices issued by the subcontractors.
This order shall be subject to the condition that the said contractors
and sub-contractors, if any, shall opt for payment of tax by way of composition,
under clause (c) of sub-section (7) of section 4 of the said Act.
This notification shall be deemed to have come into force with effect
from the first day of April, 2005 and shall be in force till 31st December, 2009 or
completion of the said project, whichever is earlier.
[Published in the A.P. Gazette Part I, Extra-ordinary No. 474,
dt. 02-07-2005]
1218
2.
Certain Exemption to M/s. Hyderabad International Airport

Limited, Hyderabad under the Andhra Pradesh Tax on Entry
of Motor Vehicles into Local Areas Act, 1996.
G.O.Ms.No. 1284, Revenue (CT-II), Department, dt. 30-06-2005.

In exercise of the powers conferred by section 12 of Andhra Pradesh Tax
on Entry of Motor Vehicles into Local Areas Act, 1996 (Act No. 26 of 1996), the
Governor of Andhra Pradesh hereby directs that the tax leviable under the
said Act on the entry of Motor Vehicles, purchased by M/s. Hyderabad
International Airport Limited or their contractors and sub-contractors and
brought into the local areas of Andhra Pradesh for utilisation in execution of
work relating to construction of Hyderabad International Airport, shall be
exempted under the provisions of the said Act, provided M/s. Hyderabad
International Airport Limited, furnishes a declaration to the effect that the
said Motor Vehicles purchased from out side the State and brought into the
State of Andhra Pradesh are for utilisation in execution of works relating to
Hyderabad International Airport.
The notification shall come into force with immediate effect.
[Published in the A.P. Gazette Part I, Extra-ordinary No. 484,
dt. 07-07-2005].
3.
Amendment to the Andhra Pradesh Value Added Tax Rules,

2005 Exemption to fair price shops
G.O.Ms. No. 1452, Revenue (CT-II), 26-07-2005
In exercise of the powers conferred by section 78 of Andhra Pradesh

Value Added Tax Act, 2005, the Governor of Andhra Pradesh hereby makes
the following amendment to the Andhra Pradesh Value Added Tax Rules,
2005, Issued in G.O.Ms.No. 394, Revenue (CT-II) Department, dated 31st March,
2005 and as amended from time to time :
This notification shall be deemed to have come into force with effect on
and from 1st April, 2005.
AMENDMENT
In the said rules, after clause (k) of sub-rule (2), of rule 20 the following
shall be added, namely,
1219
(1) any goods (except kerosene) purchased or procured for supply

through Public Distribution System (PDS)
As a result of this restricition on input tax credit for the goods (except
kerosene) purchased for the purpose of Public Distribution System (PDS), the
corresponding sales will not be liable to any tax. Accordingly the Food
Corporation of India or Andhra Pradesh State Civil Supplies Corporation
Limited will be liable to pay tax only, if their sales are first sales. They will not
be liable to pay any tax on the sales of goods (except kerosene) purchased from
local Value Added Tax Dealers and they will also be not eligible to claim any
input tax credit for such purchases. Fair Price Shops are acting as agents on
behalf of the State Government i.e., a resident principal. As such, fair price
shops do not have any liability to register under Andhra Pradesh Value Added
Tax Act, 2005 and to pay any tax. However, if the fair price shops are dealing
in any other goods not supplied through Public Distribution System, they
will be liable to register under Andhra Pradesh Value Added Tax Act, 2005
depending on their turnover of such goods and will have to pay tax
accordingly.
[Published in the A.P. Gazette Extra-ordinary Part I, No. 53,
dt. 29-07-2005].
4.
Government Contracts - Certain Instructions - Orders Issued.

G.O.Ms.No. 11, Finance (Work and Projects F. 8) Department,
dt. 29-07-2005.
1.
Deputy Financial Advisor and Ex-Officio Dy. Secretary to

Government, Financial (W and P) Department D. O. Lr. No.
629 / F. 8 (1) / 05-2, dt. 09-05-2005 along with minutes of the
Meeting held on 27-04-2004.
2.
CCTs Ref. No. A III (1) / 78 / 05, dt. 14-07-2005.
ORDER
In exercise of the powers conferred under section 76 (2) of A.P. VAT Act,
2005, the Government of Andhra Pradesh hereby issues the following
instructions on executing works contracts under APVAT Act, 2005.
1.
Tax collection at source at 4% towards VAT shall be made in all

payment made in all Engineering Departments of all works
1220
irrespective of value of work and irrespective a category of

registration of the contractor / firm.
2.
Necessary provision in the works estimate has to be made at 4%

of the cost of the work towards VAT where value of material
component in the work is more than 10% of the value of the total
work.
3.
In respect of works in which overall material component involved

is less than 10% of the value of work, no provision towards VAT
be made in the estimates and no recovery also need be made in
respect of such works payments.
4.
The component of 4% for payment against VAT shall be included

in the estimates prepared in this connection.
5.
For implementation of VAT and effecting TCS, date of payment of

the respective bill only is the criterion. As and when bills are
paid, 4% tax should be collected, wherever applicable.
6.
Calculation of VAT to be deducted is as follows :

Amount of bill x
4
104
7.
In respect of ongoing works, the recovery as per already existing

provision will be made and in addition, the difference between
4% of work value and earlier provision already available will
also be made. This is to ensure that all payments from 01-042005 are regulated according to VAT provision. This additional
amount can be provided in the works estimates and if necessary
the relevant estimate sanctioning authorities can sanction revised
estimates for this purpose.
8.
Sales Tax recovered in the bills will be credited by the PAOs direct
to the Major head 0040 Sales Tax - Sub Major Head 040 - Minor
Head 102 Receipts under State Sales Tax Accounts - Sub Head 05
Tax Collection - and a Schedule of Sales Tax (TIN - Wise) is to be
given by the PAO to the DDO (with copy to Commercial Tax
authorities).
9.
A copy of the Schedule of TCS shall be given to the nearest CTO by

the PAO.

10.
5.
1221
Form 501 (certificate of Tax Collection at Source) is to be furnished

to the contractor by the Drawing and Disbursing Officer at the
time of delivery of cheque at the instance of each payment. A
copy Form 501 is attached.
[11. In respect of all works costing more than Rs. 5 lakhs each, no
work should be awarded without the successful tenderer
submitting copy of his VAT registration shall be annexed to the
agreement].
Carrying out Amendments to the Andhra Pradesh Value

Added Tax Rules, 2005
G.O.Ms. No. 1614, Revenue (CT-II), dt. 31-08-2005
In exercise of the powers conferred under sub-section (1) of section 78 of

the Andhra Pradesh Value Added Tax Act, 2005 (Act No. 5 of 2005) the
Government of Andhra Pradesh hereby makes the following amendments to
the Andhra Pradesh Value Added Tax Rules, 2005, issued in G.O.Ms.No. 394,
Revenue (CT-II) Department, dated 31-03-2005 and published in the Rules
Supplementary to Part-I Extra Ordinary issue of Andhra Pradesh Gazette No.
29, Dated 20-04-2005.
In the said Rules,
1.
In Rule 17,
(1)
In sub-rule (3),
(i)
for clause (b) the following shall be substituted namely :

(b)
1.
The VAT dealer mentioned in clause (a) above shall pay tax
at the rate of four percent (4%) of the total consideration
received or receivable.
Subs. by G.O.Ms. No. 1 Finance (Works & Projects-F-8) Department dt. 24-12006. The earlier sub-rule (11) was as follows While calling for tenders to take
up a work for execution, the authorities concerned shall insist for proof of
registration under VAT in respect of all work costing more than Rs. 5 lakhs. No
work should be awarded without the successful tenderer submitting copy of his
VAT registration certificate incorporating his Tax Identification No. (TIN).
A copy of such registration certificate shall be annexed to the agreement.
1222
(ii)
In clause (d) the words of fifty percent (50%) shall be omitted,
(iii)
In clause (g) the words The sub-contractor, if he is a VAT dealer,

in such a case may either opt for composition under clause (c) of
sub-section (7) of section 4, or pay tax under clause (a) of subsection (7) of section 4. shall be omitted,
(2)
In sub-rule (4),
(i)
In clause (g) the words The sub-contractor if he is a VAT dealer,

in such a case may either opt for composition under clause (d) of
sub-section (7) of section 4, or pay tax under clause (a) of subsection (7) of section 4. shall be omitted,
(ii)
After clause (h) the following clause shall be added namely,
The VAT dealer mentioned in clause (a) above shall pay an amount
equivalent to one percent (1%) of the total consideration received or receivable
or the market value fixed for the purpose of stamp duty, whichever is higher.
This payment shall be made by way of a demand draft obtained in favour of
the Commercial Tax Officer or Assistant Commissioner concerned and the
instrument is to be presented at the time of registration of the property to the
Sub-Registrar, who is registering the property, duly furnishing his TIN (Tax
payer Index Number) and the full postal address of the CTO/Assistant
Commissioner concerned on the reverse of the DD. The Sub-Registrar, shall
then send the same to the CTO/Assistant Commissioner concerned every
week.
II. In Rule 18,
In clause (a) of Rule 18, for the words two percent, the words
four percent shall be substituted.
III.
In Rule 19,
sub-rule (5) shall be omitted.
IV.
In Rule 20,
After sub-rule (3), the following shall be inserted namely,

(3-a) Where any VAT dealer pays tax at the rate of twelve and half
percent (12.5%) on the sale consideration of a used or a second hand vehicle
already registered in the State under the Motor Vehicles Act, 1988, he shall be
1223
eligible for notional input tax credit at the rate of twelve and half percent
(12.5%) on the purchase price actually paid supported by documentary
evidence. Such notional input tax credit shall not exceed the output tax payable
on the sale of used or second hand vehicle by the VAT dealer.
V.
In Rule 24,
For sub-rule (1) the following shall be substituted namely,

(1) In the case of a VAT dealer, the tax declared as due on Form VAT200, shall be paid not later than fifteen days after the end of the tax period if
the payment is by way of cheque and not later than twenty days after the end
of the tax period if the payment is by way of demand draft or bankers cheque
or by way of remittance into the Treasury.
dt. 01-09-2005]
6.
Amendment to Rule 20 of Andhra Pradesh Value Added Tax

Rules, 2005.
G.O.Ms.No. 1675, Revenue (CT-II) Dept., dt. 23-09-2005
In exercise of the powers conferred by section 78 of Andhra Pradesh

Value Added Tax Act, 2005, the Government of Andhra Pradesh in supersession
of G.O.Ms.No. 1452, Revenue (CT-II) Department, dt. 26-07-2005 hereby makes
the following amendment to the Andhra Pradesh Value Added Tax Rules,
2005, issued in G.O.Ms.No. 394, Revenue (CT-II) Department, dated 31st March,
2005 and as amended from time to time :
This notification shall be deemed to have come into force with effect on
and from 1st day of April, 2005.
AMENDMENT
(1)
In the said rules, the clause (1) under sub-rule (2) of Rule 20 shall
be substituted as under :
(1)
rice purchased by Food Corporation of India from VAT dealers

or farmers or farmers clubs or associations of farmers in the
State.
1224
(2)
After clause (1), the following clause (m) shall be inserted.
(m) rice purchased by Andhra Pradesh State Civil Supplies

Corporation Ltd., from the Depots of Food Corporation of India,
in Andhra Pradesh or from any other VAT dealer in the State.
[Published in the A.P. Gazette - Extra-ordinary Part I, No. 923
dt. 03-10-2005]
7.
Amendments to the Andhra Pradesh Value Added Tax

Rules, 2005
G.O.Ms.No. 2201, Revenue (CT-II) Dept., dt. 29-12-2005
In exercise of the powers conferred by sub-section (1) of section 78 of the

Andhra Pradesh Value Added Tax Act, 2005, (Act No. 5 of 2005) the Governor
of Andhra Pradesh hereby makes the following amendments to the Andhra
Pradesh Value Added Tax Rules, 2005, issued in G.O.Ms.No. 394, Revenue
(CT-II) Department, dated 31-03-2005 and published in the Rules Supplement
to Part-I Extra Ordinary issue of Andhra Pradesh Gazette No. 29, dated
20-04-2005 and as subsequently amended from time to time.
The amendments to rule 20 and rule 67 made hereunder shall be deemed
to have come into force with effect on and from the 1st April, 2005; the other
amendments made shall be deemed to have come into force with effect on and
from the 1st December, 2005.
AMENDMENTS
In the said rules,
I.
In Rule 16, in sub-rule (3) after clause (e), the following clause
shall be added namely,
(f)
Wherever any credit notes are to be issued for discount or sales

incentives by any VAT dealer to another VAT dealer after issuing
tax invoice, the selling VAT dealer shall pass a credit note without
disturbing the tax component on the price in the original tax
invoice, so as to retain the quantum of input tax credit already
claimed by the buying VAT dealer as well as not to disturb the
tax already paid by the selling VAT dealer.
1225
For example. If 100 TVs are sold @ Rs. 10,000/- each, amounting to
Rs. 10,00,000/-, the original tax charged @ 12.5% is Rs. 1,25,000/-. If the discount
of 10% is offered subsequently based on fresh purchases, the selling dealer can
pass on the benefit of Rs. 1,00,000/- for the price without disturbing the tax
component of Rs. 1,25,000/-. The buying dealer will not alter the input tax
credit already claimed amounting to Rs. 1,25,000/-. The selling VAT dealer
will not claim reduction in output tax liability consequent to lowered price
offered.
II.
In Rule 20,
(1)
namely,
In sub-rule (2), for clause (h), the following shall be substituted
(h)
Natural gas, naptha and coal unless the dealer is in the business
of dealing in these goods;
(2)
namely,
After clause (m), the following clauses shall be added
(n)
Refrigerators, coolers and deep freezers purchased by Soft Drink

Manufacturers not for use in their manufacturing premises;
(o)
Any goods purchased and used as inputs in job work;
(p)
PDS Kerosene purchased by wholesale dealers for the purpose of

supplying to Fair Price Shops;
III. In Rule 24, in sub-rule (1), after the words by way of remittance
into the Treasury, the words or by Electronic Funds Transfer (EFT) shall be
added;
IV.
(1)
namely,
In Rule 37,
In sub-rule (2), the following shall be inserted at the end,
Whenever a VAT dealer is liable to restrict his sales tax credit as per
the conditions in Rule 20, he shall submit Form VAT 200-G alongwith the
return. Wherever annual adjustment of sales tax credit is to be made, such
VAT dealer shall submit Form VAT 200-H alongwith the return for March,
2006.
(2)
In sub-rule (3), for the words These shall be claimed monthly
commencing on the return for August, 2005 and ending on the return for
1226
January, 2006 the following words shall be substituted, namely,

These installments shall be claimed in the returns for the period from
August, 2005 to March, 2006.
V.
In Rule 55,
(1)
For sub-rule (7), the following shall be substituted, namely,
(7) The transporter or owner or other person in charge of the goods

vehicle or a vessel as the case may be shall maintain a register of record in
Form 520-A containing full details of the consignor or consignee with full
address, TIN Registration Number, CST Registration Number, Invoice Number
/ Delivery Challan Number / quantity and value of the goods and other details
of goods transported in the goods vehicle or a vessel.
The transporter or owner or other person in charge of the goods vehicle
or a vessel as the case may be shall submit an extract of the entries made in
such register of records, extract of entries entered in the long book or goods
vehicle records or trip sheet as the case may be for each month to reach the
Commercial Tax Officer having jurisdiction over the area in which the goods
are delivered before the 10th day of the succeeding month. The register of
record maintained shall be made available to any officer of the Commercial
Taxes Department not below the rank of Deputy Commercial Tax Officer in
case of any enquiry, whenever called for the word transporter shall include
any agency transporting goods by Road, Rail, Air, Water or combination
thereof.
(2)
After sub-rule (7), the following shall be added, namely,
(8) The owner or other person in charge of goods vehicle or a vessel

or a bus carrying passengers and goods, as the case may be and where such
goods are transported for more than one consignee in the State or other States
and where such transport of goods are not covered by sub-rule (1) to subrule (6) of this rule, shall submit details of the goods being carried in Form-650
at the first entry into the State at the check post. Such Form shall be submitted
in duplicate to the officer-in-charge of the check post and after getting it verified
and attested by the officer-in-charge of the check post the original should be
retained at the check post and the duplicate shall be issued to the person
submitting such Form-650 and he shall carry duplicate form alongwith goods
vehicle.
(9)
The owner or other in charge of goods vehicle or a vessel or a bus
carrying passengers and goods, as the case may be and where such goods are
1227
transported for more than one consignee in other States and where such
transport of goods are not covered by sub-rule (1) to sub-rule (6) of this rule,
shall submit details of the goods being carried in Form 651 at the Exit Check
Post in the State. Such Form shall be submitted in duplicate to the officer-incharge of the check post and after getting it verified and attested by the officerin-charge of the check post, the original should be retained at the check post
and the duplicate shall be issued to the person submitting such Form-651 and
he shall carry duplicate form alongwith goods vehicle.
(10) The owner or other person in charge of goods vehicle or a vessel
or a bus, as the case may be had transported goods covered by Rule 55 (8) and
Rule 55 (9), in a month, in addition to complying with the provisions of subrule (7) of this rule, shall submit the duplicate copies of Forms 650 and 651 for
each month by 10th of the following month to the Deputy Commissioner
having jurisdiction over the area where the registered office of such vehicles,
buses and vessels carrying goods are located. The copies of duplicate Forms
650 and 651 should also be submitted by their branches and parcel offices if
such branches are independently operating and such copies of forms should
be submitted to the Deputy Commissioner in whose jurisdiction such branch
offices are located or where goods are delivered by such transport vehicles or
buses or vessels.
VI.
namely,
In Rule 56 after sub-rule (2), the following shall be added
(3) Where the owner or other person in charge of goods vehicle or a

vessel or a transport bus carrying passengers and goods has not complied
with the provisions made in Rules 55 (8), 55(9) and 55 (10) or carrying goods
other than those mentioned in such forms, on verification of such vehicle or
bus or vessel, the officer-in-charge of the check post shall detain the vehicle
alongwith the goods for further verification. The procedure and powers laid
down in sub-rule (1) and sub-rule (2) of this rule shall be followed by the
officer-in-charge of the check posts to dispose of such detained goods and
vehicles.
VII.
namely,
In Rule 57, after sub-rule (2), the following shall be added,
(3) Further on such inspection by such officer it is found that any

goods vehicle or a vessel or a bus carrying passengers and goods is not
accompanying with the copies of Form-650 or Form-651 as the case may be or
such vehicles are carrying the goods other than those mentioned in those
forms, such officer may take action as provided for in Rule 56.
1228
VIII. In Rule 65, after sub-rule (7), the following shall be added,
namely,
(8) The Commissioner of Commercial Taxes may authorise any officer
not below the rank of Joint Commissioner to exercise the powers conferred in
this rule.
IX.
namely,
In Rule 67, in sub-rule (3), the following words shall be omitted,
Wherever the input tax exceeds output tax for a tax period and the
deferment unit made any export sales or sales in the course of exports in the
same tax period, the unit shall carry forward such excess input tax upto the
month of March every year and shall be eligible to claim refund in the tax
return for the month of March every year.
dt. 31-12-2005]
8.
Government Contracts Certain Instructions Amendment

orders issued.
G.O.Ms. No. 1, Finance (Works and Project F.8) Department,
dt. 24-01-2006
Ref : 1. G.O.Ms.No. 11, Finance (Works and Projects F. 8) Dept.,
Dated 29-07-2005.
2.
From the Commissioner of Commercial Taxes, D.O. on CCTs

Ref. No. A. III (1) / 78 / 2005, dt. 02-01-2006.
ORDER
In the circumstances stated by the Commissioner of Commercial Taxes,
in the letter second read above, the following amendment is issued to the G.O.
first read above.
AMENDMENT
In place of point (11) of instructions, the following shall be
substituted :
In respect of all works costing more than Rs. 5 lakhs each, no work
should be awarded without the successful tendered submitting copy of his
1229
VAT registration certificate incorporation Tax Identification Number (TIN). A

copy of such registration shall be annexed to the agreement.
9.
Andhra Pradesh Value Added Tax Act, 2005

M/s. Gangavaram Port Limited Refund of tax under
APVAT Act, 2005 Notification Issued.
G.O.Ms. No. 304, Revenue (CT-II) Department dt. 10-03-2006
Govt. Memo No. 11768, P1/2005, dt. 31-01-2006 of TR&B
(Ports) Department.
NOTIFICATION - I
In exercise of the powers conferred by sub-section (1) of section 15 of the
Andhra Pradesh Value Added Tax Act, 2005, the Governor of Andhra Pradesh,
having found it necessary to do so in the public interest, hereby directs that
the tax paid :
(a)
By M/s. Gangavaram Port Limited to their sellers on the purchase

of all inputs for construction of Gangavaram Port;
(b)
By the contractors and the sub-contractors, if any, engaged by or

for Gangavaram Port Ltd., on their purchases of all inputs used
for construction of Gangavaram Port, under the provisions of
the said Act; shall be refunded to the respective purchasers,
subject to the following conditions.
CONDITIONS
1.
The goods purchased by M/s. Gangavaram Port Limited, or its

contractors or sub-contractors must be for use or consumption
in the execution of the project work of Gangavaram Port.
2.
M/s. Gangavaram Port Ltd., shall furnish a separate declaration

duly signed by the competent authority to the effect that the
goods purchased by it are for use or consumption in the execution
of project work of Gangavaram Port Ltd., for each tax invoice, in
respect of which refund of tax paid is claimed.
3.
Where the said contractors or sub-contractors make claim for

refund of the said tax paid, in addition to the tax invoices or
invoices received by them from their sellers, they shall furnish
the said declaration in respect of each such invoice, duly signed
by the said person on behalf of Gangavaram Port Limited.
1230
This Notification shall be deemed to have come into force with effect
from the month of September, 2005, and shall be in force till December, 2008
or the completion of the said project, whichever is earlier. The refund of
taxes paid by M/s. Gangavaram Port Limited, or its contractors or subcontractors shall be made within (30) days from the date of the submission of
the claims.
NOTIFICATION - II
In exercise of the powers conferred under sub-section (1) of section 15 of
the Andhra Pradesh Value Added Tax Act, 2005, the Governor of Andhra
Pradesh, having found it necessary to do so in the public interest, hereby
directs that the tax paid under sub-section (7) of section 4 of the said Act, by
M/s. Gangavaram Port Limited, Contractors or sub-contractors engaged by
M/s. Gangavaram Port Limited, for execution of works contracts relating to
the project work of Gangavaram Port in Andhra Pradesh, shall be refunded
as follows :
(a)
The said tax paid by M/s. Gangavaram Port Limited, or

its contractors or sub-contractors shall be refunded to
M/s. Gangavaram Port Limited, or its contractors or subcontractors on production of proof of remittance of tax deducted
at source in accordance with sub-section (4) of section 22 of the
said Act, alongwith the invoices issued by the contractors.
(b)
The said tax paid by the contractors to the sub-contractors if

any shall be refunded to the contractors on production of proof
of remittance of tax deducted at source in accordance with
invoices issued by the sub-contractors sub-section (4) of
section 22 of the said Act, alongwith the invoices issued by the
sub-contractors.
This notification shall be subject to the condition that the said

contractors and sub-contractors if any shall opt for payment of tax by way of
composition under clauses (c); (d) and (e) of sub-section (7) of section 4 of the
said Act.
This Notification shall be deemed to have been come into force with
effect from the month of September, 2005, and shall be in force till December,
2008 or the completion of the said project, whichever is earlier. The refund of
taxes paid by M/s. Gangavaram Port Limited, or its contractors or subcontractors shall be made within (30) days from the date of the submission of
the claims.
10.
1231
Andhra Pradesh Value Added Tax, 2005 (Act No. 5 of 2005)

Amendment to Rules 23 and 24 of the Andhra Pradesh
Value Added Tax Rules, 2005 Notification Issued.
G.O.Ms. No. 317, Revenue (CT-II) Department dt. 14-03-2006

Ref. : (1)
(2)
G.O.Ms. No. 394, Rev. (CT-II) Dept., dt. 31-03-2005.

From the Commissioner of Commercial Taxes, Andhra
Pradesh, Hyderabad, Lr. No. AIII (1) / 134 / 2005,
dt. 25-02-2006.
NOTIFICATION
In exercise of the powers conferred by sub-section (1) of section 78 of
Andhra Pradesh Value Added Tax Act, 2005 (Act No. 5 of 2005) the Governor
of Andhra Pradesh hereby makes the following amendments to Andhra
Pradesh Value Added Tax Rules, 2005 issued in G.O.Ms. No. 394, Revenue (CTII) Department, dt. 31-03-2005 and published in the Rules supplementary to
Part I Extra ordinary issue of A.P. Gazette No. 29, dt. 20-04-2005, and as
subsequently amended from time to time.
AMENDMENT
In the said Rules :
(1)
To sub-rule (1) of rule 23 the following proviso shall be added
namely :
Provided that the return for the month of March shall be filed on or
before 7th April.
(2)
To sub-rule (1) of rule 24 the following proviso shall be added,
namely :
Provided that the tax declared as due for the month of march shall be
paid on or before 7th April.
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ANDHRA PRADESH VALUE ADDED TAX

(AMENDMENT) ACT, 2005
[Act No. 23 of 2005]
An Act to Amend the Andhra Pradesh Value Added Tax Act, 2005.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Fifty-sixth year of the Republic of India, as follows :
1.
Short title, extent and commencement. (1) This Act may be
called the Andhra Pradesh Value Added Tax (Amendment) Act, 2005.
(2)
It extends to the whole of the State of Andhra Pradesh.
(3)
(a) Sections 2, 3 and 4 shall be deemed to have come into force
with effect on and from 29th August, 2005;
(b)
Sub-section (1) and clauses (i), (ii), (v), (vi), (viii), (x), (xi), (xii),
(xiii), (xiv), (xv) of sub-section (3) of section 5 shall be deemed to
have come into force with effect on and from the 18th August,
2005;
(c)
sub-section (2) and clauses (iii), (iv), (vii), (ix) and (xvi) of subsection (3) of section 5 shall be deemed to have come into force
with effect on and from the 1st September, 2005;
(d)
clauses (i) and (ii) of sub-section (4) of section 5 shall be deemed to

have come into force with effect on and from the 20th June, 2005;
and
(e)
clause (iii) of sub-section (4) of section 5 shall be deemed to have

come into force with effect on and from the 28th July, 2005.
2.
Amendment of section 2. In the Andhra Pradesh Value Added
Tax Act, 2005 (Act 5 of 2005) (herein after referred to as the principal Act), in
section 2, in sub-section (14), for the words Sales Tax Levy Validation Act
1956, the words Central Sales Tax Act, 1956 shall be substituted.
3.
In section 4 of the principal Act, in sub-section (7),
(i)
in clause (c), the words of fifty percent (50%) shall be omitted;
(ii)
after clause (d), a new clause shall be inserted namely,
(e)
any dealer having opted for composition under clauses (b), (c)
and (d), purchases or receives any goods from outside the State
1232
1233
or India or from any dealer other than a Value Added Tax dealer
in the State and uses such goods in the execution of the works
contracts, such dealer shall pay tax on such goods at the rates
applicable to them under the Act and the value of such goods
shall be excluded for the purpose of computation of turnover on
which tax by way of composition at the rate of four percent (4%)
is payable.;
(iii)
the existing clause (e) shall be renumbered as clause (f);
(iv) after the proviso in clause (f) as so renumbered, the following

proviso shall be added namely,
Provided further that no tax shall be payable under this sub-section
on the turnover relating to the consideration received as a sub-contractor if
the main contractor opted to pay tax by way of composition subject to the
condition that the sub-contractor shall pay tax in respect of any goods
purchased or received from outside the State or India or from any person
other than a Value Added Tax dealer in the State on the value of such goods at
the rates applicable to them under the Act.;
4.
In section 22 of the Principal Act,
(1)
In sub-section (4), for the words for a Company; and at the
rate of 2%, the words for Central Government or a Company; and at the
rate of four percent (4%) shall respectively be substituted.
(2)
In sub-section (5), the words the provision of sub-section (4)
of shall be omitted.
(3)
After sub-section (6), the following new sub-section shall be
added, namely,
(7)
Any person required to deduct tax at source under subsections (3) and (4) fails to deduct or to remit such tax shall be
liable to pay interest at the rate of twelve percent (12%) per annum
for the delayed period.
5.
In the Principal Act,
(1)
In Schedule-I,
(i)
In the entry against Serial No. 1 the words including hand
operated sprayers and dusters, shall be added at the end.
(ii)
In the entry against Serial No. 5, the words including maps,
charts, globes and atlases shall be added at the end.
1234
(iii) After Serial No. 47, but before explanation, the following New
Serial and the entry relating thereto shall be added, namely,
48.
Rakhi.
(2)
In Schedule III, for Serial No. 2 and the entry relating thereto,
the following shall be substituted namely,
2.
Articles and Jewellery made of bullion or specie or any other

precious metals and Jewellery embedded with precious stones
and semi-precious stones.
(3)
In Schedule IV,
(i)
For Serial No. 7, and the entry relating thereto, the following
shall be substituted, namely,
7.
All utensils including pressure cookers and pans excepting

utensils made of precious metals;
(ii)
17.
Electric Motors and Oil Engines upto a capacity of 10 HP,

Centrifugal, Monobloc and submersible pumpsets Starters of
electric motors and pumpsets, parts and accessories thereof;
(iii) In the entry against Serial No. 19, for the words Chemical
fertilisers, the words Chemical fertilisers, Bio-fertili-sers shall be
substituted;
(iv) In the entry against Serial No. 20, the words including drip and
sprinkle irrigation systems but excluding mosquito repellants in any form
shall be added at the end;
(v)
In the entry against Serial No. 28, for the words and Ravva,
the words Ravva, Vermicelli and Semiya, shall be substituted;
(vi) In the entry against Serial No. 33, the words and fittings
thereof; shall be added at the end;
(vii) For Serial No. 39, and the entries relating thereto, the following
39.
IT Products, that is to say,

(1)
Word Processing Machines and Electronic Typewriters;
1235
(2)
Electronic Calculators;
(3)
Computer Systems and Peripherals, Electronic Diaries;
(4)
Parts and Accessories of Items (1) (2) and (3) above;
(5)
DC Micromotors / Stepper motors of an output not

exceeding 37.5 Watts;
(6)
Parts of Items (5) above;
(7)
Uninterrupted Power Supplies (UPS) and their parts;
(8)
Permanent magnets and articles intended to become

permanent magnets (Ferrites);
(9)
Electrical Apparatus for line telephony or line telegraphy,

including line telephone sets with cordless handsets and
telecommunication apparatus for carries current line
systems or for digital line systems; videophones;
(10)
Microphones, Multimedia Speakers, Headphones, Earphones and Combined Microphone / Speaker Sets and their
parts;
(11)
Telephone answering machines;
(12)
Parts of Telephone answering machines;
(13)
Prepared unrecorded media for sound recording or similar

recording of other phenomena, Video and Audio CDs,
Cassettes and DVDs (recorded and unrecorded).
(14)
IT Software on any media;
(15)
Transmission apparatus other than apparatus for radio

broadcasting or TV broadcasting, transmission apparatus
incorporating reception apparatus, digital still image video
cameras;
(16)
Radio communication receivers, Radio pagers;

(i)
Aerials, antennas and their parts;
(ii)
Parts of Items (15) and (16) above.
(17)
LCD Panels, LED Panels and parts thereof;
(18)
Electrical capacitors, fixed, variable or adjustable (Pre-set)

and parts thereof;
1236
(19)
Electrical resistors (including rheo-stats and potentiometers), other than heating resistors;
(20)
Printed circuits;
(21)
Switches, Connectors and Relays for upto 5 AMPS at

voltage not exceeding 250 Volts, Electronic fuses;
(22)
Data / Graphic Display tubes, other than TV Picture tubes

and parts thereof;
(23)
Diodes, transistors and similar semi-conductor devices,

Photosensitive semi-conductors devices; including
photovoltaic cells whether or not assembled in modules
or made up into panels, Light emitting diodes, Mounted
piezo-electric crystals;
(24)
Electronic Integrated Circuits and micro assemblies;
(25)
Signal generators and part thereof;
(26)
Optical fibre cables;
(27)
Optical fibre and optical fibre bundles and cables;
(28)
Liquid Crystal Devices, Flat Panel display devices and parts

thereof;
(29)
Cathode ray oscilloscopes, Spectrum Analysers, Cross-talk

meters, Grain measuring instruments, Distortion factor
meters, Psophometers, Network and Logic analyzer and
Signal analyzer.
(viii) For Serial No. 45, and the entries relating thereto, the following
45.
Pipes of all varieties including G1, C1, PVC, Ductile, RCC & PCC
pipes, their fittings thereof and Cement Poles;
(ix) In the entry against Serial No. 46, the words and Hawai
Chappals; shall be added; at the end;
(x)
52.
Ready made garments, bed sheets, pillow covers, towels, blankets,

traveling rugs, curtains, crochet laces, zari, embroidery articles
and all other made ups;
1237
(xi) For Serial No. 63, and the entry relating thereto, the following
63.
Tractors and Threshers, Harvesters, Tractor Trailers, Tyres, Tubes

attachments and parts thereof;
(xii) For Serial No. 68, and the entry relating thereto, the following
68.
Writing instruments, writing ink, Geomentry Boxes, Colour Boxes,

Pencil Sharpeners and Erasers;
(xiii) For Serial No. 88, and the entry relating thereto, the following
88.
Drugs and medicines whether patent or proprietrary, as defined

in clauses (i), (ii) and (iii) of section 3 (b) of Drugs and Cosmetics
Act, 1940 (Central Act 23 of 1940), and hypodermic syringes,
hypodermic needles, perfusion sets, urine bags, catguts, sutures,
surgical cotton, dressings, plasters, catheters, cannulae, bandages
and similar articles, but not including,
(a)
Medicated goods;
(b)
Products capable of being used as cosmetics and toilet

preparations including Tooth Pastes, Tooth powders,
cosmetics, Toilet articles and soaps;
(c)
Mosquito Repellants in any form;
(d)
Surgical equipment, medical devices and implants;
(xiv) In the entry against Serial No. 89, for the words including
poultry Feed Supplements, the words and Feed Supplements; shall be substituted;
(xv)
After Serial No. 90, the following shall be added at the end,
namely,
91.
Khandasari Sugar.
92.
River Sand and grit and stone chips.
93.
Extra Neutral Alcohol (ENA) and rectified spirit.
94.
Kerosene stove, kerosene lamp, petromax lamp hurrican lamp,

glass chimney and parts and accessories thereof.
1238
95.
Bio-diesel manufactured using non-edible vegetable oils such as

Jatropha, Pongamia, Rice bran, Neem, Cotton seed, Rubber
seed;
(xvi) After Serial No. 95, the following Serial No. and the entries
relating thereto shall be added namely,
96.
Artificial and rolled gold jewellery, imitation and costume

jewellery.
(4)
In Schedule VI,
(i)
For Item No. 1 and the entries relating thereto, the following
shall be substituted namely,
(ii)
In the column of rate of tax for the entries against Items Nos. 2,
3, 4 and 5 for the numbers 32.55%; 32.55%, 32.55% and 21.33%,
the numbers 34%, 34%; 34% and 23% shall respectively be
substituted.
(iii)
After Explanation III, the following explanation shall be inserted,

namely,
Explanation III-A. The amendment issued to Item 1 in the notification

issued in G.O.Ms.No. 1229, Revenue (CT.II) Department, dated 20-06-2005,
shall be deemed to have come into force w.e.f. 01-04-2005 in so far as it relates
to the stocks of liquor costing more than Rs. 700 per case held by M/s Andhra
Pradesh Beverages Corporation Limited, as on 01-04-2005, and sold thereafter
with old MRP stickers and at the old billing rates as per the orders issued
by the Government in G.O. Rt. No. 399, Revenue (Excise - II) Department,
dt. 31-03-2005.
6.
The Andhra Pradesh Value Added Tax (Amendment) Ordinance,
2005 (Repeal of Ordinance 20 of 2005) is hereby repealed.
1239
A.P. VALUE ADDED TAX (AMENDMENT)

ACT, 2006
[Act No. 10 of 2006]
An Act further to Amend the Andhra Pradesh ValueAdded Tax Act,
2005.
Be it enacted by the Legislative Assembly of the State of the Andhra
Pradesh in the Fifty-sixth year of the Republic of India, as follows :
1.
Short title, extent and commencement. (1) This Act may be
called the Andhra Pradesh Value Added Tax (Amendment) Act, 2006.
(2)
It extends to the whole of the State of Andhra Pradesh.
(3)
(a) Sections 2 and 5 shall be deemed to have come into force with
effect on and from the 24th November, 2005;
(b)
Sections 3 and 4 shall be deemed to have come into force with

effect on and from the 1st December, 2005;
(c)
Section 6 shall come into force on such date as the Government

may, by notification, appoint.
2.
Amendment of section 4. In the Andhra Pradesh Value
Added Tax Act, 2005 (Act 5 of 2005) (hereinafter referred to as the principal
Act) in section 4, for sub-section (9), the following shall be substituted
namely,
(9) notwithstanding anything contained in the Act, every dealer
running any restaurant, eating house, catering establishment, hotel, coffee
shop, sweet shop or any establishment by whatever name called and any
club, who supplies by way of or as part of any services or in any other manner
whatsoever of goods being food or any other article for human consumption
or drink shall pay tax at the rate of twelve and half percent (12.5%) on sixty
percent (60%) of the taxable turnover, if the taxable turnover in a period of
preceding twelve months exceeds Rs. 5,00,000/- (Rupees five lakhs) or in the
preceding three months exceeds Rs. 1,25,000/- (Rupees one lakh twenty five
thousand).
3.
Amendment of section 13. In section 13 of the principal Act, in
sub-section (5), clause (f) shall be omitted.
1239
1240
4.
sub-section (5), after clause (g) the following clause shall be added namely,
(h)
every dealer liable to pay tax under sub-section (9) of section 4 of

the Act
5.
sub-section (4), for the words a VAT dealer, the words a dealer shall be
substituted.
6.
Amendment of Schedules. In the principal Act,
(1)
In Schedule - I,
(i)
for Serial No. 20, and the entry relating thereto, the following
shall be substituted namely,
20.
Bangles made of shells, glass, Lac or any other material other

than those made of precious metals;
(ii)
after Serial No. 48, but before Explanation, the following new
Serial No. and the entry relating thereto shall be added namely,
49.
Made ups and garments made of Khadi cloth
(2)
In Schedule III, for serial number I and the entry relating thereto,
the following shall be substituted namely,
1.
Bullion, Specie, Platinum and other precious metals
(3)
In Schedule-IV,
(i)
after Serial number 96, the following new serial numbers and the
entries relating thereto shall be added at the end, namely,
97.
LPG/CNG conversion kits
98.
Pre-stressed Railway Concrete Sleepers
7.
Repeal of Ordinance 24 of 2005. The Andhra Pradesh Value
Added Tax (Second Amendment) Ordinance, 2005 is hereby repealed.
1241
WORKS CONTRACT - CIRCULARS

1.
CCTs Ref. No. AI (3)/1330/2004-2, dt. 23-10-2004

Sub : Tax on Photography Certain instructions Regarding.
The attention of all the Deputy Commissioner (CT), in the State is

involved to the subject cited, and they are informed that Supreme Court in
A.C.C. v. Commissioner of Custom reversed its earlier decision announced in the
case of Rainbow colour labs and observed the photographic activity has become
taxable as works contract consequent on 46 th constitution amendment
implying there by that material involved in the photographic activity is liable
to tax.
In view of the above, all the Deputy Commissioners (CT) in the state is
requested treat the photographic activity as works contract and assess the
dealers accordingly. They are also requested to advice all assessing authorities
subsequently.
2.
CCTs Ref. No. AIII (1) / 131 / 05, dt. 22-07-2005

Sub : A.P. Self Employed Engineers Association Sales Tax not to
insist Production of clearance certificate and assessment
of tax during registration of contractors clarification.
Ref : Commissioner of Tenders, Hyd. Lr. No. COT / E.E.2 / DEE
111 / T4 / BOCE / 2005, dt. 06-07-05.
I am to invite your attention to the reference cited and to inform as
under
1.
Yes, VAT registration i.e., TIN (Tax Payer Identification Number)

should be insisted wherever the value of the contract is above Rs.
5 Lakhs for registration / renewal of contractors with you.
2.
Clearance certificate from the concerned CTO should be insisted

upon : This should be in the nature of APGST / VAT no dues
certificate.
3.
The validity of the clearance certificate will be Twelve months

from date of issue, after which fresh clearance certificate should
be called for.
4.
Model Proforma for clearance certificate is enclosed.

1241
1242
CLEARANCE CERTIFICATE
1.
2.
Address :
3.
Tin :
The above dealer has filed returns up to date (Month & Year) and has
paid Taxes due therein.
The dealer has no pending arrears under A.P. VAT Act 2005, CST Act
1956 and APGST Act 1957, A.P. Entry Tax Act as on date.
This certificate is valid up to a period of Twelve months from the date of
issue.
Date :
Place :
Assessing Authority
3.
CCTs Ref. No. AI (1)/993/2005, dt. 24-11-2005

Sub : APGST/APVAT Act Photographic Labs Judgment of
Honble STAT observed as Works Contract Certain
instructions issued Regarding.
Ref : 1. Honble STAT Judgment in case of M/s. Paramount
Studios v. State of A.P. in T.A.No. 69/99, dt. 22-07-2005.
The attention of the Deputy Commissioner (CT) in the State in invited

to the reference cited. They are informed that the Honble STAT in the case of
Mr. Paramount Studios v. State of A.P., Held that the work of processing,
printing and developing of Photos be treated as Works Contract, eligible to
tax.
All the Deputy Commissioners (CT) in the state are requested to issue
necessary instructions to all the assessing authorities to keep the above
decision in view, while assessing the cases, wherein the work of processing,
printing and developing of photographs is involved.
Please acknowledge the receipt of the circular instructions.
4.
1243
CCTs Ref. A.III (1)/441/2005-10, dt. 15-12-2005

Sub : APVAT Act 2005 - Works Contracts - TCS / TDS - Procedure
for Streamlining the accounting of TCS and TDS at the
Division / Circle Offices - Issued - Regarding.
It is observed that the procedure of collection and accounting for of TDS

is not uniform in all the divisions and it is resulting in wrong reporting of
revenue collections. There are instances of reporting revenue in the circles,
where the dealers are not actually registered with that circle, on the plea that
the deducting authority is located in the jurisdiction of the circle and TDS
amounts. To avoid this confusion and eliminate double reporting of revenue,
it is proposed to streamline the procedure relating to the TCS and TDS as
under.
I.
Provisions relating to TCS :
As per section 22 (3) of APVAT Act 2005 read with Rule 17(2)(h), the
Government Department has to collect the tax (TCS - Tax Collection at Source)
@ 4% on total value of contract and remit the tax amount within 15 days from
the date of payment to the contractor. As per Rule 17(2) (d) the contractor has
to obtain Form 501 filled in all respects and duly signed by the contractee (the
Government Department) and submit it along with the return on Form VAT
200 on or before the 20th of the following month to the month in which tax
collection at source was made. Box 10 of the Form 501 should contain remittance
particulars of TCS.
It may be noted that where the contractee fails to remit such tax collected
/ deducted at source within fifteen days of the payment to the contractor, the
authority concerned shall be liable to pay penalty and interest for the delayed
payment. (Rule 17 (2) (h) in case of Government Department or local authority
and Rule 17 (3) (i) in case of other contractees).
Note. Remittance of such tax collected may be by way of book
adjustments or challan or by drawing the instrument (Demand draft, bankers
cheque, cheque, etc.) on the name of the AC (LTU) / CTO concerned, with whom
the contractor is registered / and on the name of authority in whose jurisdiction
the contractee is located in cases of contractors not registered with the tax
department.
II.
Provisions relating to TDS :
As per section 22 (4) of APVAT Act 2005 read with Rule 17(3)(i) and
Rule 18, contractee (other than Government / local bodies) has to deduct the
tax @ 4% of the amount paid or payable to the contractor at the time of each
1244
payment and remit such tax amount within 15 days of payment to the
contractor. As per Rule 18 (1)(b) the contractor has to obtain Form 501-A from
the contractee and submit it along with the proof of payment to the authority
prescribed along with the return on or before 20th of next month.
Note. Remittance of such tax deducted may be by way of book
adjustments or challan or by drawing the instrument (Demand draft, bankers
cheque, cheque etc.) on the names of the AC (LTU) / CTO concerned, with whom
the contractor is registered / or on the name of authority in whose jurisdiction
the contractee is located in cases of unregistered contractors.
The following procedure is to be followed by the contractees, the
contractors and the commercial taxes department for the smooth functioning
of the system.
I.
II.
Procedure to be followed by the Contractees :

1.
For the sake of convenience, the tax collecting / deducting

authority may remit all such taxes collected / deducted during
the month by way of single instrument, within 15 days after the
end of the month. Appropriate amendments are being made in
the rules. However the contractee (tax collecting / deducting
authority) can remit or issue an instrument separately for each
contractor wherever convenient or desired by the contractor.
2.
In the case of contractee Government Department or local

authority concerned shall make out Form 501 / on the name of the
VAT contractor at the time of tax collection / deduction itself, in
duplicate and supply a copy of such Form to the contractor and
furnish the other copy to the person authorised from tax
department to collect the TCS particulars from his office.
3.
In the case of contractees other than Government Department or

local authority, the contractee shall complete Form 501-A
indicating the TIN, the amount of tax deducted and details of the
related contractee. The contractee shall supply a copy of such
Form to the contractor at the time of deduction itself and furnish
another copy along with the draft/challan to the authorised
person in the CT department.
Procedure to be followed by the contractor :

1.
VAT Registered Contractor : The contractor shall submit the

Form 501 / Form 501-A certified by the contractee together with
1245
Form VAT 200 by the 20th of the month following the month in
which payment was received.
2.
III.
In case of TDS the contractor shall pay any balance of tax payable
after adjusting the amount of TDS on Form 501 A in Box 22 (a) of
VAT Return to the tax due.
Procedures to be followed by the department :

In case of TCS / TDS :
1.
The Deputy Commissioner of the division shall appoint an office

/ a person to collect the particulars of TCS / TDS from the office of
the contractees and to collect Demand Drafts (DDs) from the offices
of all contract awarding authorities (state, central, banks, local
authorities etc.) including Sub-Registrar (Registration) located
in their jurisdiction.
2.
The office / person so appointed shall visit the office of TCS / TDS
authorities on or before 15th of every month and collect the
instruments, Forms 501/501-A, if any, along with the list of
contractors (summary of all payments issued in 501/501-A) from
whom TCS/TDS is made and remitted.
3.
The office/person so appointed shall be maintain a Register in the

prescribed proforma, which is enclosed. (Annexure-I)
4.
After obtaining the book adjustment Ref. No / challan / demand

draft / bankers cheque or cheque, the particulars of the instrument
so obtained shall be entered into VATIS through the payment
window TCS/TDS/Miscellaneous payment only even though
TIN is available, in the office of the office / person collecting the
particulars.
Path - Payments - TCS/TDS/Miscellaneous payments - Name of the

contractee :
(a)
Entering payments through this window avoids double

credit to the registered contractor. If the payments are
entered against TIN of the registered contractor, it results
in double credit as the amounts in Form 501-501-A are
also taken as adjustments against payments.
(b)
Further it will be convenient to get the reports relating to

the TCS/TDS revenue.
1246
(c)
This will also facilitate to correlate the remittance particulars with the Box 10 of Form 501/501-A. Hence this mode
is adopted to enter TCS/TDS payments.
5.
Where the contractor himself collects the instrument in case of

TCS/TDS, he will deposit it along with Form 501/501-A at the
time of filing of return to the concerned AC LTU/CTO. In this case
challan should be generated by entering payments through
window mentioned in point 4 mentioned above.
6.
Where a registered contractee (For e.g., HEL, MRF etc.) made TDS
from payments made to the contractors and submits those
particulars along with his own return to the AC LTU/CTO
concerned, the remittance particulars so supplied shall be entered
in the service in which it is received through the payment window
TCS/TDS/Miscellaneous payment only (as detailed in point 4
above) but not against the TIN of the contractee. Please take care
that such deducted amounts shall not be credited to the deducting
registered contractee. The particulars of deductions shall be sent
to the office / person authorised in the division.
7.
Such registered contractee shall submit list of contractors from

whom TDS is made along with a copy of Form 501-A (for each
registered contractor). The officer who received Form VAT 501-A
in this case shall send it to the Circle Office concerned, where the
contractor is registered.
In case of Builder contractors :

1.
In case of collection of Demand Drafts (DDs) from the subregistrars office, the office/person so appointed shall visit the
sub-registrars office in their jurisdiction on every Saturday and
collect the DDs.
2.
The office/person so appointed shall maintain a Register in the

prescribed proforma, which is enclosed. (Annexure-II)
3.
After obtaining the DDs, the DDs relating to registered builder

contractors shall be sent to the concerned authority, and the DDs
relating to unregistered contractors shall be entered in to VATIS
through window TCS/TDS/Miscellaneous payment.
1247
Path Payments TCS/TDS/Miscellaneous payments Name of

the contractee.
4.
The DDs relating to registered contractors shall be entered into

VATIS through window Record payment details in the
concerned offices.
Path Payments record payment details TIN DD

Revenue Reporting. As it is considered that the amounts in Form
501-501-A are treated as tax paid by the contractor against his liability, the
officer collecting TCS/TDS has be deduct the amounts relating to registered
contractors from the total amount and the remaining amount relating to
unregistered contractors may be retained by him. He can report the collections
relating to unregistered contractors as his circle/divisions revenue. The
amounts referred to in Form 501/501-A will be the revenue of the circle where
contractor is registered.
Action Plan :
1.
The procedure prescribed shall be implemented them 01-01-2006.
2.
There should not be any reporting of TCS/TDS by the statistics

wing in the office of Commissioner of Commercial Taxes. The
revenue reporting of TCS/TDS will now onwards be done by the
divisions only.
3.
The instructions issued shall be followed scrupulously by all the

Deputy Commissioners in the State.
4.
The name and designation of the office/person appointed for the

purpose of collecting the particulars, as well as the institutions/
contractees from where such payments are to be collected, should
be sent to this office by 30-12-2005.
5.
The Deputy Commissioners concerned shall obtain the list of TCS/

TDS authorities/Sub-registrars offices located in their jurisdiction
and send a copy to this office.
6.
The collection office should ensure that there should not be

reporting of revenue relating to registered contractors whose
revenue will be credited to the circle where they are registered.
In case of any deviation, as this amount to double reporting of
revenue, suitable action will be initiated on the person
responsible.
1248
5.
7.
It should be ensured that the Registers prescribed are maintained

properly.
8.
This work shall be reviewed periodically by the Deputy

Commissioner concerned.
CCTs Ref. No. AI (3)/911/2005 1, dt. 23-01-2006

Sub : APGST Act and APVAT Act Levy of tax on the goods
imported from outside the State and used them in the
execution of works contracts certain instructions issued
regarding.
The question whether tax under Local Sales Tax Act (APGST/APVAT
Acts) can be levied on the goods, imported from outside the State and used by
the Works contractors in the execution of works contracts in the State of A.P.,
has been coming up repeatedly.
In the case of works contracts, when it is said that there is no tax on
goods, imported in the course of interstate trade or commerce, it is imperative
to verify as to which contract has occasioned the movements of such goods
from outside the State. It is claimed by some works contractors that the
contract for execution of works, entered into by them with the contractee, has
occasioned the movement of the goods. This contention is being accepted by
the assessing authorities / revision authorities and no local tax is levied.
However, there is a need to verify such claim with reference to the nature as
well as the terms and conditions of the contract. In order to establish that the
contract between the works contractor and the contractee has occasioned the
movement of the goods from outside the State, the terms and conditions of
such contract should, explicitly or implicitly, provide for a contractual
obligation to necessarily import such goods from outside the State or
alternatively there should be no choice for the contractor but to import goods
from outside the State. If the works contractor is not under such a contractual
obligation or is not forced to import the goods from outside the State, the
movement of such goods can not be said to have been occasioned by such a
contract. In such as case, the contract that occasions the movement of goods
from outside the State is an explicit dealer outside the State and such a contract
is independent of the Contract, entered into by the contractor with the
contractee. It is so, because the purchase of goods from outside the State by
the Contractor is not in pursuance of the discharge of the contractual obligations
and the event of incorporation of goods in the execution of works is not in
continuity with the interstate movement of the goods from outside the State.
1249
Therefore, unless it is established that the purchase of goods from outside the
State is in pursuance to the discharge of contractual obligations, either explicitly
or implicitly cast on the Contractor by virtue of the Contract between him
and the contractee, all the goods, imported from outside the State and used in
the execution of works contract are liable to tax under the Local Sales Tax Act
(APGST / APVAT Act).
In case the works contractor is not liable to pay tax on the goods,
imported from outside the State, by virtue of the reasons that such import is
as a result of his contractual obligation under the contact between him and
the Contractee, the liability to pay the entry tax whenever applicable is on the
Contractee, who is the importer, according to the definition of the term in
the A.P. Tax on Entry of Goods into Local Areas Act. The definition of the
importer is as follows :
Section 2 (h) : Importer means a person who brings or causes to be
brought any goods whether on his own account or on account of a principal
or any other person, into a local area, from any place outside the State for
consumption, use or sale therein or who owns the goods at the time of entry
into the local area
In the circumstances, mentioned above, the Contractee is the importer,
since he causes to be brought the goods into the local area by virtue of the
terms and conditions of the Contract between him and the Contractor.
Therefore all the assessing authorities and revision authorities are
directed to examine the terms and conditions of the contracts, entered into by
the works contractors with the contractees, and assess to tax the goods
imported from outside the State and used in the execution of the works, if the
contractors are found to be under no contractual obligations under the contract
between them to necessarily import the goods from outside the State and
Incorporate the same at the time of execution of the works. If there is not the
case, whenever, applicable the Contractees should be assessed to tax on the
value of such goods, imported, under the A.P. Tax on Entry of Goods into Local
Areas Act.
The receipt of the Circular should be acknowledged immediately.

VAT Works Contracts

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VAT ON

Turnover Tax dealer

Works Contract for the

Works Contracts (Other than

Andhra Pradesh Works Contract

Turnover Tax dealer

Input tax credit

Returns and Self

Due date for payment of tax

Tax Deduction at source

Tax Collection at source

Offences and Penalties

Tax invoice / invoice

Andhra Pradesh Works Contract

Every dealer whose taxable turnover in the preceding three

Andhra Pradesh Works Contract

every dealer importing goods in the course of business from

every dealer registered or liable to be registered under the Central

every dealer residing outside the State but carrying on business

every dealer liable to pay tax on goods listed in Schedule-VI;

every commission agent, broker, delcredere agent, auctioneer or

every dealer availing sales tax deferment or sales tax holiday;

every dealer executing any works contract exceeding Rs. 5,00,000/

Added by Act No. 10 of 2006, dt. 04-01-2006, w.e.f. 01-12-2005.

Andhra Pradesh Works Contract

Rule 4. Procedure for Registration. (1) Every dealer liable or

Rule 5. Time to apply for Registration. (1) (a) Every dealer

Every dealer who is required to register under sub-section (3) of

Andhra Pradesh Works Contract

subsequent to the month in which the liability to register for

Every dealer who is required to register under sub-section

In the case of a dealer who is required to register under

ILLUSTRATION OF TIME TO APPLY FOR REGISTRATION IS GIVEN BELOW:

New dealer commencing business

Apply not later than 15 days

Expected date of taxable sale

Running business (A TOT

Apply by the 15 th of the

Liability to register for VAT

Dealers registered under

Apply for registration not

Deemed registration for VAT

No need to apply for fresh

Andhra Pradesh Works Contract

New business intending

Dealers registered under

A dealer setting up a factory

Apply for TOT registration 15

Expected date of commencement

When taxable turnover for

No need to apply for fresh

Andhra Pradesh Works Contract

Andhra Pradesh Works Contract

Rule 6. Effective date of Registration. (1) The VAT registration

from the date of commencement of the Act in the case of dealers

in the case of a dealer in business opting for registration as a VAT

where the application is made, on or before the 15th of the

where the application is made, after the 15th of the month,

New dealer commencing business.