2. Value Added TAX Tamil Nadu Value Added Tax Act 2006 has come into effect from 1st January 2007. VAT is a multi-stage tax on goods that is levied across various stages of production and supply with credit given for tax paid at each stage of Value addition. VAT is the most progressive way of taxing consumption rather than business.
3. Registrations Rules Every dealer whose total turnover in respect of purchase and sale within the State in any year is not less than ten lakhs of rupees and every other dealer whose total turnover in a year is not less than five lakhs of rupees shall submit an application for registration under this Act to the registering authority in whose jurisdiction his principal place of business is situated, within thirty days from the date of commencement of the Act.
4. Vat Rates Tax Rate at 1 % Tax Rate at 4% Tax Rate at 12.5%
5. Input Vat input tax” means the tax paid or payable under this Act by a registered dealer to another registered dealer on the purchase of goods including capital goods in the course of his business
6. Capital Goods a) plant, machinery, equipment, apparatus, tools, appliances or electrical installation for producing, making, extracting or processing of any goods or for extracting or for bringing about any change in any substance for the manufacture of final products; (b) pollution control, quality control, laboratory and cold storage equipments; (c) components, spare parts and accessories of the goods specified in (a) and (b) above; (d) moulds, dies, jigs and fixtures; (e) refractors and refractory materials; (f) storage tanks; and (g) tubes, pipes and fittings thereof used in the State for the purpose of manufacture, processing, packing or storing of goods in the course of business excluding civil structures and such goods as may be notified by the Government
8. Output Tax “output tax” means tax paid or payable under this Act by any registered dealer in respect of sale of any goods;
9. The purchase account maintained by registered dealer shall contain the following particulars,namely – (i) Invoice No. and date with seller’s Taxpayer Identification Number; (ii) Description of the goods purchased; (iii) Value of purchase of exempted goods; (iv) Value of the goods purchased from registered dealers with rate of tax; (v) Value of the goods purchased from unregistered dealers with rate of tax; (vi) Value of goods purchased from outside the State by issue of ‘C’ Forms as prescribed under the Central Sales Tax (Registration and Turnover) Rules, 1957; (vii) Value of goods purchased from outside the State without issue of ‘C’ Forms; (viii) Value of goods purchased as specified in the Second Schedule; (ix) Value of goods received on stock transfer from principal or head office situated outside the State for sale; (x) Value of goods received on stock transfer from the principal within the State for sale; (xi) Value of goods imported; (xii) Value of goods returned; (xiii) Total tax paid on local purchases;
10. The sales or stock transfer account maintained by a registered dealer shall contain the followingparticulars, namely: - (i) Invoice No. and date with buyer’s Taxpayer Identification Number; (ii) Description of goods with quantity and value sold; (iii) Sale value of exempted goods ; (iv) Sale value realized out of stock received from the principal; (v) Value of goods under zero rated sale out of taxable purchases; (vi) Inter-State sales out of taxable purchases; (vii) Sale value of goods specified in the Second Schedule; (viii) Sale value of goods taxable at 1% with tax due; (ix) Sale value of goods taxable at 4% with tax due; (x) Sale value of goods taxable at 12.5% with tax due; (xi) Sale value of goods sold in the course of inter-State sale against ‘C’ Form as prescribed under the Central Sales Tax (Registration and Turnover) Rules, 1957; (xii) Sale value of goods sold in the course of inter-state sales without ‘C’ Form; (xiii) Value of goods despatched to outside the State with Form F, as prescribed under Central Sales Tax (Registration and Turnover) Rules, 1957; (xiv) Value of goods despatched to outside the State without Form F; (xv) Value of goods returned; (xvi) Total tax due; (xvii) Tax payable:
