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Who Is The Dealer?

Section 2(10) of the VAT Act, 2003 defines the term dealer. Dealer means the person, who is engaged in the activities in connection with or consequent to or incidental to trade or commerce. It also means the person, who supplies, distributes, sells or buys any goods against the valuable consideration or otherwise. He can be the merchandise agent, factor, broker, auctioneer or executes Works Contracts, transfer the goods by way of lease, delivers the goods on Hire-Purchase Agreement or installment or supplies goods or distributes them by way of or as part of the service. He can be a casual dealer or his agent or non-resident dealer or sub-agent. The dealer also means the local branch of any firm company, any association, body of individual, situated outside the state whether incorporated or not.

Agriculturist or educational institutions will not be deemed to be dealers.

Any dealer, registered under the earlier law or whose turnover exceeds the prescribed limits subject to tax; or any merchandise agent like factor, broker, auctioneer, etc, or non-resident dealer, are also liable to pay CST. Any dealer registered himself under voluntary registration under Section 25 or any successors to the business to which the predecessors are also liable to tax under section 60.

Any dealer whose turnover exceeds the specified limit as prescribed by the state is liable to pay tax. The turnover will be considered on the total turnover of sale and purchase. It will be levied in the event of any sale or purchase.

Special Additional Tax(SAT)

SAT refers to the Special Additional Tax. It may either be independent of VAT or in addition to VAT. It maybe levied at the first stage or at any stage as may be notified in the state. The SAT will be levied on the sale of prescribed goods such as liquor, petrol, aviation turbine fuel, diesel, raw opium, tendoo leaves, natural gas. The rate on SAT would be levied as prescribed in respect of the relevant schedules or notifications. SAT will be payable along with the ordinary sales tax that is payable under the Act. This is done by furnishing returns within the prescribed time and in the stipulated form.

Relevant Components Of Calculating VAT

• Sale or purchase price of the goods
• Turnover of sale or purchase including the taxable turnover
• Output Tax
• Input Tax
• Input Tax paid on purchase on which the credit or set off claim
• Net tax payable