Uttar Pradesh VAT Rules

Assessment for an assessment year

1. Subject to provisions of this Act, in respect of every dealer liable to pay tax, for each assessment year, there shall be an assessment of tax payable by the dealer and amount of input tax credit admissible to the dealer.

   Provided that where the dealer has carried on business during a part of the assessment year, such assessment shall be for such part of the assessment year.

2. Subject to provisions of sub-section (4), every dealer, who has submitted annual return, shall be deemed to have been self assessed to an amount of tax admittedly payable on the turnover of purchase or sale or both, as the case may be, disclosed, and to an amount of input tax credit shown admissible in such return.
3. For all purposes under this Act and rules made thereunder –
   • annual return submitted, shall be deemed to be an assessment order and facts disclosed or figures mentioned in such return shall be deemed part of such assessment order; and
   • last date of the assessment year succeeding the assessment year in which the date prescribed for submission of annual return falls, shall be deemed to be the date of such assessment order.
4. In cases of –
   • approximately twenty percent of such dealers as are liable to pay tax in any assessment year and who are specified or selected by the Commissioner or by an officer, not below the rank of an Additional Commissioner, authorized by the Commissioner in this behalf, before the expiry of the assessment year succeeding the assessment year for which assessment is to be made; and
   • dealers falling in any of the category below,
     • a dealer who has not submitted annual return within the time prescribed or extended; or
     • a dealer by whom return for one or more tax periods of the assessment year have not been submitted; or.
     • a dealer in whose case assessing authority has passed provisional assessment order under section 25 in respect of one or more tax periods to the best of its judgment; or
     • a dealer in whose case, on the basis of material available on records, if the assessing authority is satisfied that the turnover of sales or purchases or both, as the case may be, disclosed by the dealer in annual return of turnover and amount of tax payable shown is not worthy of credence or tax shown payable in the return has not been deposited by the dealer, or the amount of input tax credit claimed is wrong or the amount of tax payable shown is incorrect; or
     • a dealer about whom there is presumption that he has made any sale or purchase of any taxable goods under this Act; or
     • a dealer who has prevented or obstructed an officer empowered to make survey, inspection, search or seizure under the provisions of this Act; or
     • except a dealer who has opted any scheme of payment of composition money under provisions of section 27, a dealer in whose case amount of tax has been deducted at source under section 34; or
     • a person who has obtained authorization for transit of goods through the State and there is presumption that such goods have been sold within the State;

     the assessing authority, after detailed examination of books, accounts and documents kept by the dealer in relation to business and after making such inquiry as it may deem fit, subject to provisions under sub-section (5), shall, -

     • where assessing authority is satisfied about correctness of turnover of sale or purchase or both, as the case may be, disclosed by the dealer, assess the amount of tax payable by the dealer on such turnover and determine the amount of input tax credit admissible to the dealer or amount of reverse input tax credit payable by the dealer; and
     • where assessing authority is of the opinion that turnover of sale or purchase or both, as the case may be, disclosed by the dealer is not worthy of credence, determine to the best of its judgment the turnover of sale or purchase or both, as the case may be, and assess the tax payable on such turnover and determine admissible amount of input tax credit and reverse input tax credit payable by the dealer.
5. Before making an assessment under sub-section (5), dealer shall -
   • be required to furnish annual return of turnover and tax referred to in sub-section (7) of section 24, if he has not submitted such return;
   • be given reasonable opportunity of being heard; and
   • be served with a notice to show cause, where determination of turnover, input tax credit or reverse input tax credit, or assessment of tax, all or any one of them, as the case may be, are to be made to the best of the judgment of the assessing authority.
6. The show cause notice referred to in sub-section (5) shall contain all such reasons on which the assessing authority has formed its opinion about incorrectness of the turnover of sale or purchase or both, as the case may be, amount of tax, amount of input tax credit or amount of reverse input tax credit:

   Provided that where opportunity for production of books, accounts and documents has been afforded to the dealer but for any reason he has not availed such opportunity and thereby the assessing authority could not examine the correctness and propriety of particulars shown in the return, it shall not be necessary for the assessing authority to give show cause notice to such dealer before making assessment to the best of its judgment.

7. Order of assessment shall be in writing and copy of assessment order along with notice of demand of the amount of tax, if any, to be deposited by the dealer, shall be served on the dealer.
8. Dealer shall deposit amount of tax assessed in excess of amount of tax deposited by him for the assessment year, within a period of thirty days after the date of service of the assessment order and notice of demand. If the amount of tax deposited by the dealer is found in excess of tax assessed, the same shall be refunded to the dealer according to the provisions of the Act.
9. Assessing authority shall not be precluded from making assessment order under this section on the ground of passing of any provisional assessment order in respect of any tax period under section 25 and such provisional assessment order shall stand merged in the assessment order passed under this section.
10. Notwithstanding anything contained contrary in this Act, in cases of following dealers or class of dealers, such number of assessments as mentioned below, may be made for the same assessment year:
    • cases relating to issue of authorisation for transit of goods through the State, separate assessment relating to each such authorisation;
    • where an unregistered dealer brings any taxable goods from outside the State more than once during an assessment year, separate assessment relating to goods brought on each occasion.
    • Dealers under sub-section (10) shall not be required to furnish annual return of turnover and tax and in cases of such dealers assessment under sub-section (10) may be made even before the expiry of the assessment year.