Uttar Pradesh VAT Rules

Realization of tax on sale or purchase of goods

1. Except as provided in section 22 and section 34, no person shall realise any amount in the name and colour of tax in respect of a sale or purchase of any goods.
2. Where amount of tax charged in tax invoice or sale invoice, as the case may be, exceeds the amount of tax payable and the selling dealer allows a refund or credit of such excess amount to the purchaser, he shall issue to the purchaser of goods a credit note containing such particulars as may be prescribed.
3. Where amount of tax payable in respect of a sale exceeds the amount of tax charged in a tax invoice or the sale invoice, as the case may be, and the selling dealer receives balance amount or credit of such balance amount from the purchaser, the selling dealer shall issue to the purchaser of goods a debit note containing such particulars as may be prescribed.
4. Where in respect of purchase of any goods, a tax invoice has been received by a dealer and such goods are returned or rejected by such dealer, the purchasing dealer shall account for the amount of tax in his books of account maintained in the ordinary course of business, and shall-
   • issue a debit note of the amount of tax to the seller; and
   • receive a credit note of the amount of tax from the seller.

Assessments, Payment, Recovery and Collection of Tax

Submission of return

1. Every dealer liable to pay tax under this Act including a dealer from whom any amount of tax has been deducted at source under section 34, shall, for such tax period and within such time, as may be prescribed, submit return of his turnover and tax, in such form and verified in such manner as may be prescribed, but the assessing authority may in its discretion and for reasons to be recorded, extend the date for submission of the return by any dealer or class of dealers:

   Provided that every dealer liable to pay tax including a dealer who claims input tax credit, shall also submit along with return a list of purchases of goods from registered dealers and list of sales of goods to registered dealers during the tax period containing such particulars as may be prescribed.

   Provided further that a dealer who has claimed input tax credit during any period of an assessment year, along with return of the last tax period of such assessment year, shall, in the prescribed form and manner, submit details of goods held in stock at the close of the assessment year and amount of input tax credit claimed in respect thereof.

2. Before submitting the return under sub-section (1), the dealer shall, in the manner prescribed, deposit the amount of tax payable shown in such return along with amount, if any, realized in excess of amount of tax due under this Act from purchaser of goods during the tax period.
3. Every person or dealer to whom provisions of section 34 apply, shall, in respect of dealers from whom any amount of tax has been deducted, submit such statement as may be prescribed, within the time prescribed under sub-section (8) of section 34.
4. Where as a consequence of the date for the submission of return being extended under sub-section (1) on the application of the dealer, the deposit of tax under sub-section (2) is deferred, there shall be payable simple interest at the rate of eighteen percent per annum on such deposit from the date immediately following the last date prescribed for submission of the return till the date of deposit of such amount.
5. If any dealer discovers any omission or other error in any return submitted by him, he may, at any time before the expiry of the time prescribed for submitting the next return, submit a revised return. If the revised return shows a greater amount of tax to be due than was shown in the original return, the dealer shall also deposit separately the difference of tax due and the interest payable under sub-section (4) as if the time for submitting the original return had been extended on the application of the dealer to the date of submission of the revised return, if, however, the revised return shows lesser amount of tax to be due than was shown in the original return the dealer may adjust the excess amount towards the tax due for the subsequent tax periods.
6. If goods sold or purchased by a dealer are returned within six months of the date of sale or purchase, and assessment for the year to which such sale or purchase relates is as yet to be made, the dealer may, within thirty days of the expiry of the month in which such goods are returned, submit for that purpose only a revised return for the tax period during which such sale or purchase was made.
7. Every dealer liable to pay tax under this Act, including a dealer who has carried on business during part of an assessment year, shall, for such assessment year or for part of such assessment year, as the case may be, submit annual return of turnover and tax within such time and in such form and manner, as may be prescribed.

   Provided that on the application of the dealer, in an appropriate case, the assessing authority may extend the period for submitting annual return but such extended period shall not exceed ninety days beyond the time prescribed for submitting such return.

8. Every person to whom provisions of section 34 apply, shall, for each assessment year, in respect of such dealers from whom amount of tax has been deducted, submit such details, in such form and manner and within such time as may be prescribed.

Assessment of tax for a tax period

1. Where in respect of any tax period of an assessment year-
   • any dealer has not submitted return of turnover and tax within the time prescribed or within the time extended by the assessing authority, or if return has been submitted without payment of tax shown payable in such return; or
   • preliminary examination of return, by the assessing authority, reveals that computations shown in the return are wrong or amount of input tax credit claimed or tax payable shown is incorrect; or
   • on the basis of material available on records with the assessing authority, it appears to the assessing authority that the turnover of sales or purchases or both, disclosed by the dealer is not worthy of credence;

   the assessing authority may, after making such inquiry as it may deem fit and after giving a reasonable opportunity of being heard to the dealer, determine -

   • to the best of its judgment the turnover, amount of tax payable and amount of input tax credit admissible, in a case in which assessing authority is of the opinion that turnover disclosed by the dealer is not worthy of credence; or
   • the amount of tax payable and amount of input tax credit admissible, in any other case,

     by passing a provisional order of assessment for such tax period.

2. No provisional order of assessment, under sub-section (1), for any tax period of an assessment year, shall be made after the dealer has submitted annual return of turnover and tax and where such annual return has not been submitted by the dealer within the time prescribed or within the time extended by the assessing authority, after expiration of such time.
3. Amount of tax assessed under sub-section (1) in excess of the amount of tax deposited by the dealer, shall be paid by the dealer, in the prescribed manner, within a period of thirty days from the date of service of the order of assessment and notice of demand on it.