Uttar Pradesh VAT Rules

Point And Rate Of Tax

1. The tax payable by a dealer under this Act, shall be levied and paid on -
   • the taxable turnover of sales of declared goods at every point of sale and at such rate, not exceeding the maximum rate for the time being specified in section 15 of the Central Sales Tax Act, 1956, as the State Government may, by notification, declare;
   • the taxable turnover of sales of Aviation Turbine Fuel, Diesel Oil and Petrol at such point of sale and at such rate, not exceeding thirty five percent, as the State Government may, by notification, declare;
   • the taxable turnover of sales of all other goods at every point of sale and at such rate, not exceeding thirty five percent, as the State Government may, by notification, declare;

   Provided that the State Government may, by notification, declare different rates of tax in respect of different goods or class of goods.

2. Tax on the taxable turnover of purchase of any goods, referred to in sub-section (4) of section 3, shall be levied and paid at the same rate at which tax on turnover of sales of such goods is leviable under sub-section (1).
3. The taxable turnover of sale or purchase shall be determined in the prescribed manner.
4. Notwithstanding anything to the contrary in this Act where goods are sold or purchased together with packing materials, sale or purchase of packing material shall -
   • be liable to tax at the rate applicable to sale or purchase of the goods sold or purchased together with such packing materials;
   • not be liable to any tax if the sale or purchase of such goods is exempt from tax at the hands of the dealer.
5. Where any goods are purchased for sale by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, tax shall not be levied on sale of such goods under the works contract if tax is payable on any earlier sale of such goods or if the dealer executing the works contract himself is liable to pay tax on purchase of such goods.
6. Every notification made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature, while it is in session, for a total period of not less than fourteen days, extending in its one session or more than one successive sessions, and shall, unless some later date is appointed take effect from the date of its publication in Gazette subject to such modifications or annulments as the two Houses of the Legislature may during the said period agree to make, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder except that any imposition, assessment, levy or collection of tax or penalty shall be subject to the said modification or annulment.

Liability of payment of Special Additional Tax

1. Every manufacturer or importer, as the case may be, of any bricks, brick-ballasts, brick-bats, fire bricks and brick tiles shall, in addition to tax payable under any other provision of this Act, pay a special additional tax on the taxable turnover of sale of such bricks, brick-ballasts, brick-bats, fire bricks and brick tiles, effected on or after the date on which such dealer is liable to pay tax under section 3, at such rate, not exceeding ten percent, as the State Government may, by notification declare.

   Provided that where such goods are purchased by a dealer from any person in the circumstances mentioned in sub-section (4) of section 3, the dealer purchasing such goods shall be liable to pay special additional tax on the taxable turnover of purchases of such goods at the same rate at which turnover of sale of such goods is liable to payment of special additional tax.

2. Credit of amount of special additional tax payable or paid by any dealer to the seller or to the State Government, shall not be allowed to such dealer as input tax credit under this Act.

Liability on issuing false tax invoice, etc.

Notwithstanding anything to the contrary contained in this Act and without prejudice to the provisions of sections 54 and 56, a dealer, who issues a false or wrong tax invoice or sale invoice to another dealer, by reason of which -

• a tax leviable under this Act on the transaction of purchase made with or by such other dealer ceases to be leviable; or
• such other dealer becomes eligible for claiming credit of input tax,

  shall be liable to pay an amount which would have been payable by such other dealer as tax on transaction shown in such tax invoice or sale invoice or the amount, credit of which would not have been claimed by such other dealer, had such tax invoice or sale invoice not been issued:

  Provided that before taking any action under this section the person concerned shall be given an opportunity of being heard