Uttar Pradesh VAT Rules

• during the assessment year preceding the first assessment year under this Act, has-
  sold any taxable goods of any amount in the course of inter-state trade or commerce; or
  • consigned any taxable goods of any amount outside the State otherwise than as a result of sale; or
  • sold any goods of any amount in the course of export of the goods out of the territory of India; or
  • sold any taxable goods of any amount in the course of import of the goods into the territory of India; or
  • sold any taxable goods of any amount received from outside the State; or
  • sold any goods manufactured or processed or packed by using any taxable goods received from outside the State; or
  • purchased or sold, as the case may be, any goods on behalf of any principal.
• being a dealer to whom clause (i) does not apply, carries on business of sale or purchase or both, as the case may be, of any goods inside the State and the aggregate of his turnover of sales or purchases or both, as the case may be, of all goods in the assessment year preceding the first assessment year under this Act, has exceeded the minimum limit of turnover for tax liability; or
• holds-
  • a registration certificate under the Central Sales Tax Act, 1956; or
  • a provisional registration certificate under the Uttar Pradesh Trade Tax Act, 1948; or
  • being a dealer to whom (a) and (b) or clause (i) or clause (ii) do not apply, a registration certificate under the Uttar Pradesh Trade Tax Act, 1948 and such dealer wants to remain registered dealer under this Act; or
• on or after the commencement of this Act, commences new business and
  • purchases any taxable goods of any amount for consigning such goods (whether or not in the same form) or any goods manufactured or processed or packed by using such goods, outside the State otherwise than as a result of sale; or
  • consigns any taxable goods except goods under sub-clause (a), outside the State otherwise than as a result of sale; or
  • sells any taxable goods of any amount in the course of inter-state trade or commerce; or
  • sells any goods of any amount in the course of export of the goods out of the territory of India; or
  • sells any taxable goods of any amount in the course of import of the goods into the territory of India; or
  • sells any taxable goods of any amount received from outside the State; or
  • sells any goods of any amount, manufactured or processed or packed by using any taxable goods received from outside the State, or
  • makes purchase or sale, as the case may be, of any goods on behalf of a principal; or
• being a dealer to whom any of the clauses (i) to (iv) does not apply, carries on business of sale or purchase or both, as the case may be, of any goods inside the State and the aggregate of his turnover of sales or purchases or both, as the case may be, of all goods, on or after the commencement of this Act, exceeds the minimum limit of turnover for tax liability at any time during any period of twelve consecutive months; or
• any other dealer to whom any of the clauses (i) to (v) does not apply, on or after the commencement of this Act,
  • applies for grant of registration certificate under this Act; or
  • applies for grant of registration certificate under sub-section (2) of section 7 of the Central Sales Tax Act, 1956, shall be liable to pay tax, provided that if a dealer deals exclusively in goods other than taxable goods, he shall not be liable to pay tax under this Act.

Explanation : For the purpose of this section, expression "aggregate of turnover of sales or purchases or both, as the case may be, of all goods" means the aggregate of turnovers of all -

• taxable goods purchased inside the State by the dealer from persons other than registered dealers ; and
• goods sold inside the State by the dealer except goods included in (a).

Provided that a dealer who purchases any taxable goods on behalf of a principal or sells any taxable goods on behalf of a principal, shall be liable to pay tax on the date on which he makes first purchase or sale, as the case may be, on behalf of such principal.

Provided that if the purchasing dealer after furnishing evidence proves to the satisfaction of the assessing authority that sale of such goods is liable to tax at the hands of the selling dealer and such selling dealer has paid tax on sale of such goods, purchasing dealer shall not be liable to pay tax on turnover of purchase.

• in case of a dealer who carries on business of transfer of right to use goods (whether or not as exclusive business) rupees two lakh; and
• in cases of other dealers, rupees three lakh.

Provided that dealer referred to in clause (ii) or clause (v) of sub-section (2) shall not be liable to pay tax after expiry of a period of three consecutive assessment years during each of which his aggregate of turnover of sales or purchases or both, as the case may be, has failed to exceed the minimum limit of turnover for tax liability.

Explanation : The dissolution of a firm or association of persons or partition of a Hindu Undivided Family or transfer by a dealer of his business shall be deemed to be cessation or discontinuance of business within the meaning of this Act.