final vat1

7/27/2019 Final Vat1

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AUG-2013 Compiled by: S.JAGATHEESAN, M.sc, DEPUTY COMMERCIAL TAX OFFICER(CT), SALEM.

jehL k TL t rl-2006

TAMILNADU VALUE ADDED TAXACT-2006

COMPILED BY:

S.JAGATHEESAN, M.sc., DCTO(CT).,DIRECT RECRUITMENT(2009-2011).,SALEM.,SALEM DIVISION .

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. v. Tiuaiwf gf v.

1 Short title and commencement. FWjiy bjhlfK. 9

2 Definitions. bghU, tiuaiwf. 9

3 Levy of taxes. bghUf gid J tfis j. 17

4 Levy of tax on right to use any goods. bghUf vtiwgagLJtjfhd cik J t.

21

5 Transfer of goods involved in works contracts. g xgjfgagL bghUfis khw brtj jhd t.

22

6 Compounding Rates for Works Contract. g xgjfhuuhzfkhd jf t brYjgLj.

23

6-A Payment of tax at compounded rate by brick manufacturers. 25

7 Levy of tax on food and drinks. cz kW ghdf J tj.

26

8 Payment of tax Compounding rates for hotels, restaurants, sweet-

stalls,clubs, caterers and any other eating houses (specified 3 rd

schedule). cztff, Wo rhiyf, gff Matwhzfkhd jf t brYjgLj.

28

9 Levy of tax on bullion and jewellery.jf, bt fof kWeiff J t j.

30

10 Tax on goods purchased by dealers registered under Central Act -

1956.. 1956/74 vD vl ika rl g bragltffsh bfhKj bragl bghUf J t.

31

11 Levy of tax on sugarcane. fU J t j. 31

12 Levy of purchase tax.bfhKj tia j. 31

13 Deduction of tax at source in works contract (TDS-

2%,5%). gxgjf tUth_y tia oj brj.32

14 Reversal of tax credit.t tuit vkhL brj. 35

15 Exempted sale. yffgl gid. 36

16 Levy of taxes in respect of imported and exported goods. wFkkW VWk bragl bghUfis bghWJ tf ntoaiy.

37

17 Burden of proof (provide the proof of transaction). bkFbghW.

37

18 Zero-rate sale (4- th schedule). {a j gid. 38

19 Input tax credit. cL t tu. 39

19(1) ITC Allowed first Schedule Goods. 3919(2) ITC Allowed for Purchase of the Goods With in a State Registerd

dealer.

40

19(3) ITC Allowed on Capital Goods, for use in Taxable Goods 41


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Manufacturing.

19(4) ITC excess of 3% of tax for transfer Goods. 4219(5) ITC Not Allowed on Excempted Goods U/S-15. 4219(6) ITC Not Allowed on Capital Goods U/S-15. 4219(7) ITC Not Allowed on Registered Dealer(OWN USE). 4319(8) ITC Not Allowed on Registered Dealer(GIFT). 4319(9) ITC Not Allowed on Theft,loss,fire& etc 43

19(10)-A ITC Not Allowed on Registered Dealer Invoice Not Duly Filled. 44

19(10)-B ITC Not Allowed On Registered Dealer Claim of ITC useduplicate invoice copy issued.

44

19(11) Fails to Claim ITC. 4419(12) ITC Reversed (Availed Credit of ITC for Finished Goods

Become Exempted).44

19(13) Deny the benefit of ITC Registered dealer (without Entering into

a transaction of sale) Assessing Authority make Enquiry.45

19(14) Registered dealer account change or ownership change. 4519(15) Purchase from cancelled Dealer. 4519(16) Registered dealer ITC availed only provisional. 4619(17) ITC Determined by the Assessing Authority. 4619(18) Excess of ITC credit. 4619(19) ITC availed shall be reversed on the date of stoppage or closure of

such business and recovered.47

19(20) Goods sold on lesser price. 5020 Assessment of tax. tf. 50

21 Filing of returns. t tu miffis jhf brj 50

22 Deemed Assessment Procedure. tf mfhu mikghfilof ntoa eilKiw.

51

22(1) Assessment Based on Returns. 5122(2) Deemed Assessment. 5122(3) Return scrutiny By commissioner . 5222(4) Best of judgment. 5222(5) Penalty one hundred and fifty per cent. 52

22(6)-a cancel the assessment. 53

22(6)-b Over Paid of tax Refunded. 53

22(6)-cOver Paid of tax Refunded. 54

23 Identical question of law is pending before High Court or

Supreme Court. cakw myJ crkw mnjnghwrl uridahdJ KowhJ Uwbjd tffgLgtnfhUnghJs eilKiw.

56

24 shown in accounts at low prices. fzFf iyiaFiwthf fhoagidf jhd tf.

57

25 Procedure to be followed in assessment of certain cases. xU ynef t f gw ntoa eilKiw.

58

26 legal representatives. rlt rhghWef J tf 61


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brj.

27 Escaped turnover and wrong availment of ITC. Lglgidbjhif jhd tf kW jtwhf Jfgl cL ttufhd tf.

61

27(1)-A Escaped assessment to tax. 61

27(1)-B Dealer assessed at a rate lower than the rate. 6227(2) Wrong availment of ITC. 6227(3) Penalty (50%,100%,150%). 6227(4) penalty 50%,100% (Fals bills & vouchers). 6327(5) Appeal (or) Rivision. 6327(6) Dont passed Assessment or re-assessment orders during stayed

under the orders of a Civil Court or other competent authority.63

27(7) Dont passed Assessment or re-assessment orders is pending

before the High Court or the Supreme Court involving a questionof law.

64

27(8) Dont passed Assessment or re-assessment orders is pendingbefore appellate or revisional authority or the High Court or the

Supreme Court involving a question of law.

64

28 Turnover not disclosed under compounding Provisions. zftifKiwfgo bjfglhj gid bjhif jhd tf.

64

28(1) Dealer has opted to pay tax. 64

28(2) Reasonable opportunity. 65

28(3) Adjusted the amount of tax. 65

29 cases of price variation.iy ntWgLif tf brj. 65

30 Power of Government to notify exemption or reduction of tax.tyf myJ tFiwig mif brtjfhd mu mfhu.

67

31 Power of Government to notify remission.jSgo brtij mifbrtjF muRF cs mfhu.

68

32 Power of Government to notify deferred payment of tax.tbrYjij jitgjF mif bra muRF cs mfhu.

68

33 Remission of tax deemed to be deferred payment of tax. tiaFiwgjhdJ tbrYJtij jitgjhf bfhsgLj.

69

34 Liability of tax of persons not observing restrictions andconditions notified under section (30 or 31). M go mifbragl tiufLf kW gjidfis filofhj egf tbrYJflghL.

70

35 Liability of firms (partnership).Wtff flghLf. 70

36 Liability to tax of partitioned Hindu family, dissolved firm.ghfid bragl J FLg, fiyfgl Wtf Kjyhdt tbrYJtjfhd flghL .

71

37 Liability to tax private company on winding up. jah Wtd_lng tbrYJ flghL.

71

38 Registration of dealers. tff g brJbfhSj. 72


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39 Procedure for registration. g brtjfhd eilKiw. 75

40 Collection of tax. tia tNj. 79

41 Forfeiture of collection of tax. tNfgl tia Hj. 81

42 Payment and recovery of tax, penalty.t, jl bjhif KjyhdtiwbrYJjY tNjY.

81

43 Transfers to defraud revenue void. tUth nkhro nehffhfbr khw yh iyaJ Mj.

84

44 Recovery of penalty or interest.jl bjhifia myJ toia tNbrj.

84

45 Further mode of recovery.D wKiw tNj. 85

46 Recovery of tax where business of dealer is transferred.tf tfkhwgLnghJ tia tNj.

87

47 Rounding off of turnover, tax. gidbjhif kW tbjhifKjyhdtiw KGikahFj. 87

48 Appointment of Commissioner of Commercial Taxes, Joint

Commissioners of Commercial Taxes, Appellate Deputy

Commissioners of Commercial Taxes, Deputy Commissioners of

Commercial Taxes, Assistant Commissioners of Commercial

Taxes and Commercial Tax Officers. tft Miza, tft izMizaf, tft nkKiwpL Jiz Mizaf, tft Jiz Mizaf,88tft cj Mizaf, tf t mYtyf Mnah mkJif.

88

49 Special powers of Deputy Commissioner under Revenue

Recovery Act. tUth tN rlgo Jiz MizaUFs jmfhuf .

88

50 Constitution of Appellate Tribunal. nkKiwpL ghaijmikJUthFj .

89

51 Appeal to Appellate Deputy Commissioner. nkKiwpL JizMizal nkKiwpL.

91

52 Appeal to Appellate Joint Commissioner. nkKiwpL izMizal nkKiwpL.

94

53 Special powersof Joint Commissioner.iz Miza j mfhuf. 96

54 Powers of revision of Joint Commissioner. iz Miza uhmfhuf.

98

55 Special powers of Additional Commissioner. TLj Miza jmfhuf.

99

56 Power to transfer appeals.nkKiwpLfis khWtjfhd mfhu. 101

57 Powers of revision by Additional Commissioner. TLj Mizauh mfhuf.

102

58 Appeal to Appellate Tribunal. nkKiwpL ghaF

nkKiwpL.

103

59 Appeal to High Court.ca kwF nkKiwpL. 109


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60 Revision by High Court.cakwdh uh bragLj. 111

61 Petitions and appeals to High Court to be heard by a Bench of not

less than two Judges. ca kwl bragL kDf kWnkKiwpLfuL gfSF Fiwahj Madh rhuiz

bragLj.

113

62 Amendment of order of assessment etc. tf MizKjyhdtF Uj.

113

63 Production of accounts.fzFfis jhf brj. 114

64 Maintenance of upto date, true and correct accounts and records

by dealers.tffsh ehsJ njtiuyhdJ cikahdJrahdJkhdfzFfS gUfS ngtugLj.

117

65 Powers to order production of accounts and powers of entry,

inspection, etc.fzFfis jhf bra MizLtjfhd kW EiHJ

M brj Kjyhdtfhd mfhuf.

119

66 Powers to inspect goods delivered to a carrier or a bailee. bghV brYe myJ ruF xgil bgWel xgilfglbghUfis M brtjfhd mfhu.

121

67 Establishment of check post or barrier and inspection of goods

while in transit.nrhjid rhto myJ jilnkil WjY, nghFtucs bghUfisM brjY.

122

68 Possession and submission of certain records by owners of boats.glFf cikahsf jyhdtf xU y gUfis j iftr

itUjY gjDjY.

127

69 Possession and submission of certain records by owners of goods

vehicle. ruFto cikahsf Kjyhdtf xU y gUfisjiftr itUjY gjDjY.

128

70 Issue of transit pass.fl mDk oid tHFj 128

71 Offences and penalties. Fw brafS jlidfS. 131

72 Composition of offences.Fwfis zfkhf j. 135

73 Cognizance of offences.Fwfis rhuizF vLJ bfhSj. 13674 Assessment not to be questioned in prosecution. Fw tH

tf Kjyhdit dtgLj TlhJ.

136

75 Bar of certain proceedings. xU y eltoiffSF jil. 136

76 Limitation for certain suits and prosecutions. xU y cik tHFfkW FwtHFfSF fhytu.

137

77 Bar of suits and proceedings to set aside or modify assessments

except as provided in this Act. j rl tif braglthW jut ffisjSgo brtjfhd myJ khaikgjfhdciktHFfSF eltoiffSF jil .

137

78 Appearance before any authority in proceedings. mfhu mik

vjKghd eltoiff Kiyahj.

137


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79 Publication of information in respect of the assessees.tfFshdtfis ga jftiy btLj.

139

80 Power to make rules. fis brtjfhd mfhu. 140

81 Power to summon witnesses and production of documents.rhfSF miHghiz LgjF Mtzfis jhf brtF camfhu.

143

82 Power to get information. jftiy bgW mfhu. 144

83 Power to remove difficulties. lghLfis F mfhu. 145

84 Power to rectify any error apparent on the face of the record.gU btgilahf bjw iH vjid rbrtjfhd mfhu.

145

85 Prohibition of disclosure of Particulars produced before tax

authorities. gidt mfhu mikfSF Kdjhf jhf bragl

tufis btLtjF jil.

146

86 Power to amend Schedules. iz goafis UJtjfhdmfhu.

148

87 Construction of reference to Tamil Nadu General Sales Tax Act

or Tamil Nadu Additional Sales Tax Act. jehL bghJ gidtrl vD RLifF bghU bfhSj.

149

88 Repeal and saving.fK fh rlfhd iz goaf. 149

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jehL khy bghUfis gj myJ thFtj jhd t bjhlghd rlijbjhFgjF, mtiw UJtjFkhdbjhU rlKto.

1. FWjiy bjhlfK.

(1) j rl, 2006-M ML jehL k TL t rl vwiHf bgW.(2) J jehL khy KGtij mshF.(3) ~J, muR mif _yFfToa mjifa nj eilKiwFtUj ntL.

2.bghUtiuaiwf.

j rl jWth ntW bghUFjjhy,-

(1) Uthf cj Miza Administrative Assistant Commissionervwh, 48-M tft Uthf cj Miza xUtuhf afgl eg vtU vW bghUgL;(2) nkKiwpL Jiz MizaAppellate Deputy Commissionervwh,48-M tft nk KiwpL Jiz Miza xUtuhf afgl eg vtU vW bghUgL;(3) nkKiwpLiz MizaAppellate Joint Commissioner vwh, 48-M tft nkKiwpL iz Miza xUtuhf afgl eg vtU vW bghUgL;(4) nkKiwpL gha Appellate Tribunal vwh,50-M gomikJUthfgl gha vW bghUgL;(5) tf mfhumikAssessing authority vwh,j rl tf vjidbrtjF, mudh myJ Mizauhmfhukfgl eg vtU vWbghUgL;(6) Jiz tft mYty' Deputy Commercial Tax Officer vwh, Mizauh, bgaFnjh myJ mt j gj fhuzkhfnth Jiz tft mYty xUt mfhufisbrYJtjFafgl egbutU vWbghUgL;(7)" cj Miza (t f)Assistant Commissioner (Assessment) vwh, 48-M

tft cj Miza (tf) xUtuhfafgl egbutU vW bghUgL;(8)" cj Miza (brayhf)",Assistant Commissioner (Enforcement) vwh,48-M tft cj Miza(brayhf) xUtuhf afgl egbutU vW bghUgL;(9) tfd lglJbrandedvwh,1958-M ML tf kW tfbghUfSfhdFf rl (ika rl43/1958) myJ 1999-M ML tf Ff rl (ika rl 47/1999),gog bragl bga xgonah myJ xU tf Fpo gonah myJ g brtJYitYs myJ g khw YitYs iy fgl bghUf vit vWbghUgL;(10) tf" business vgJ, (i) bjh vgjhd aila tjf myJ tf myJ cgmyJ JW bjh myJ bjh Wtd, mjifa tjf, yhg myJ Mjha bgWnehfJl eljglhY mythD kW mjifa tjf, tf, cg, JW

bjh myJ bjh Wtd Mjha vJ iljhY r mythD r, vwjikeljbgW tjf, tf, cg JW bjh myJ bjhWtd; kW(ii) mjifa tjf, tf, cg myJ JW bjh myJ bjhYF bjhlila myJilisthf myJ Jizisthf Uw tf Kid eltoif vjid cslF.(11) KjL ruFf capital goodsvwh, folfLkhdf kW mudh mifbragl Toa mjifa bghUf fyhd tf eltoif bghUfisjahj, gogoahdbrKiw, fLj myJ nrJ itjvgjhd nehffhf khygagLjgL;(a) ruFf vtiw cg brtjnfh, cUthFtjnfh, tobjLgjnfh myJ KaWbgWtjnfh myJ W bghUfisjahgjfhd bghU vjid tobjLgjnfh myJm khw vjid bfhL tUtjnfahd au bjhF, au jsthl, cgfuz,brafUf, fUf, gagLfUfmyJ rhjd;

(b) khR fLghL, jufLghL, Mtf kW FgjdfUf;


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(c) nkny (a) kW (b)-FJiufgl bghUf ghff,c ghff kW JizbghUf;(d)thglf, mRf, fUoiyf kW bghUf;(e)ca btg Vghf kW cabtg V bghUf(f)bfhfyf kW

(g) FHhf kW FHf kWmt bghUf;vd bghUgL.(12) jbra tf casual trader vwh, khyFnsna tfhj, khyFiyahd tf l bgwhj, Kjik tf, Kft myJ ntW jF vY, buhffhfnth myJjitJ gzbrYJtj _ykhfnth, myJ juF, ciHa myJ w kW kW gaDfhfnth, khyFbghUfis thFj, w, tHFjmyJ gL brjiy cslamt nghJtf ailajhdeltoifia bfhoUw eg vWbghUgL;(13) tft mYty Commercial Tax Officer vwh, 48-M tftmYtybuhUtuhf afgl eg vtU vW bghUgL;(14) Miza Commissioner vwh, 48-M tft MizabuhUtuhfafglegbutU vW bghUgL;(15) tf dealer vwh, neuoahfnth myJ wthnuh, buhffhfnth myJ

jitJ gz brYJjYfhfnth myJ juF myJ ciHa w kW kW gaDfhfnth,bghUfis thFj, w, tHFj myJ gL brj vD tf gfis brw egbutUvWbghUgL; kW(i) mjifa tf bjhiy br X csh mfhu mik, Wk, glhj J FLg,Wtf myJ wegf Tlikid;(ii)jbra tf xUtiu;(iii) Kjik tf vtUfhfruFfis thfnth, fnth, tHfnthmyJ gL branth br xUfhua, xU juf, xU juF Kft myJ mcwho (arhati) iz Kft (a del credre) myJxU VyLgt myJ ntW vj bganyD miHfgL tfKft kW Kdtfglthwhdtuhf UjhY iybawhY myJ vt _ykhf bghUf thfgLnkh,fgLnkh,tHfgLnkh myJ gL bragLnkhmtiu;(iv) khyF btna mikJsWtf myJ Wk cq isxbthiw;(v) buhf, j itJ gz brYJj myJ w kW kWgaDfhf, bghUf vYbrhJik xgjbkhid gathW myhk,wthW khL tf bjh


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fnth, tHfnth myJ glnth brkh, mJ j rl nehffSfhf, xU tf vdfUjgLj ntL.sf -III.- Vy _ykhfnth myJ kw goahfnth, neuoahfnth myJ KftbuhUt_ykhfnth buhffhfnth myJ j itJ gzbrYJtjfhfnth myJ w kWkWgavjfhfnkh cik nfhuglhjmyJ gKjyhd myJ gLjgl Koahj myJ Xil cilrfsh

ifahf cs giHa myJ gadw bghUf myJ ntlhbkd xJa bghU myJ fbghUf cslfyhd bghUf vtUF ttif brw tU egf myJ mikfmjifa ttif brw msF, j rl vd mlUj nghY j rl nehffSfhftf xUtuhf bfhsgLj ntL; mjhtJ:-(i) JiwKf bghW fHf; (PortTrust).(ii) mnghijF eilKiwYsrl vjgo mikJ cUthfgLs khefuhf, efuhkwf kW wcsh mfhu mikf; ika rl 24/1989.(iii) 1989-M ML Ufrlgo bghU tiuaiw braglthwhd U Uthf;(iv) fg nghFtuJ kWfLkhd Wkf;(v) khd nghFtuJ WkfkW thDh Wtdf; ikarl59/1988.(vi) 1988-M ML aTfrlgo vj nghFtuJ tofSfhf mDkL

tHfgLsnjh mj mDkil itJ gagLjgLw myJ thliffhf gagLjVfgleg vtU;(vii) jehL khy rhiynghFtuJ fHff;ika rl52/1962.(viii) 1962-M ML Rfrlij Utw a mu RfJiw; ika rlII /1934.(ix) 1934-M ML a nrkt rlfhd ulh izgoa cslfgoUwfhL kWfHff myJ Wkf; kWtf;(x) sgu Kfthikf; kW,(xi) ika muRF myJ khymuR vjF brhjkhd myJ mjdh mikfgl myJ mjUthffLghLF cgl w fHf, Wk, FGk myJ mfhu mik vJ. ika rl74 /1956.(16) "sif ruFf" declared goodsvwh, 1956-M ML ika gidt rl,14-M khyfSilnaahd tjf myJ tf j KaJt thjbjd sgglbghUf vW bghUgL.(17) "Jiz tft mYty" Deputy Commercial Tax Officer vwh, Mizauh bgaFlgnlh myJ mtuJ gj fhuzkhfnth, Jiz tft mYty mfhufis brYJtjFafgl eg vtU vW bghUgL;(18) "Jiz Miza"Deputy Commissioner vwh, 48-M tft Jiz MizaxUtuhf afgl eg vtU vWbghUgL;(19) Jiz Miza (brayhf)" Deputy Commissioner (Enforcement) vwh, 48-M tft(brayhf) Jiz Miza xUtuhf, afgl eg vtU vW bghUgL;(20) yffgl bghUf" Exempted goodsvwh, ehfh iz goa

tUw bghUf kW mtnghJmudh mif thyhfyffgl bghUf vWbghUgL;(21) bghUf goods vwh, (brjhf, bjhljF cikf, ruF UfkWgFf kW flL Mtzf fyhd) midJ tifahd mir brhJ vd bghUgL;kW mJ xgj gfis bragLJt cgLjgLs (bghUfshfnth myJntWwtotJldhd) bghUfis myJ mir brhid bghUJt, nkgLJt myJbrgLt gagLjgL bghUf cslfyhd midJ _y bghUf, tf bghUfkW ruFf, glf Madtiw cslF; kW mJ midJ is gf, fmyJ ynjhL izfgnlh myJ y gFahfmiknjh mj gidF KdjhfnthmyJgid xgj ngnyhxbfhsgl bghUfvWbghUgL;(22) muR"Governmentvwh, khy muR vWbghUgL;

(23) LbghU input vwh, tf xUtuh mt j tf eltoif nghJ bfhKjbragl, bjh _y ruFfcslfyhd bghUf vit vWbghUgL;


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(24) "cL t"input taxvwh, g bgwtf xUt tf eltoif nghJ bjhKjL ruFf cslfyhdruFf vtiw bfhKj brtng g bgw tf xUtuhkbwhUg bgw tfUF j rlgobrYjgl myJ brYjjf t vWbghUgL;(25) "izMiza"Joint Commissioner vwh, 48-Mgo tft iz Miza xUtuhfafgLs eg vtU vW bghUgL; ika rlV/1908.(26) "rlKiw

rhghWe"legal representative vwh,1908-M ML cika eilKiwbjhFrl 2-M (11) - vD T mjF FjfgLs mnjbghUis bfhoUjntL;(27) "cg"manufacture vwh, mj yfzntWghLfSlD Xd brhfSlD,bghUf vjid jahj, cUthFj, toj khaikj, m brj, Wtot bfhLj,nrJ izj myJ jtwhd jah eltoif gLt brj myJ jGaikj vdbghUgLtnjhLkW tf Kiw ntWgl kW jJt bghUis totbfhLJ bfhzw Mdh murhmif bragl Toathwhd eltoif vjid cslfhj bghUf jah eltoif vjidcslF.(28) WKj t output taxvwh, j rlgo g brj tf vtuhnyD bghUfvtiw gid brtij bghWj ms jrl go brYjgl myJ brYjgljf t

vW bghUgL;(29) "tf l" place of businessvwh, khyF tf xUt bghUfis thFwmyJ w l vJ vWbghUgL kW mJ;(i) glf rhiy lF myJtf xUt jdJ ruFfis nrfJitF w l xiw;(ii) tf, bghUfis gjdgLJw, jahw myJ cg brw l xiw; kW(iii) tf jdJ fzFfis, gntLfis, Mtzfis itJtUw l xiw cslF.(30) g bgw tf registered dealer vwh, jrlgo g bgw xU tfvWbghUgL;(31) "g br mfhu mik" registering authority vwh, tf xUtiu bghWjms, mtf tf bjh Kjik lkhdJ khy vj t ftl mfhutugFmikJsnjh, mj tf tljiyt myJ Mizauh mfhukfgl mjifa wmfhu mik vW bghUgL;(32) "ttuit v khWj" reversal of tax credit vwh j rl go VbfdntnfhugL Jf bgw cLttuit vkhwhFj vd bghUgL;(33) gidsalevwh, j yfzntWghLfSlD Xd brhfSlDbuhffhfnth,j itJ gz brYJtjfhfnth myJ w kW kW gaDfhfnth tf eltoifnghJ(milkhd, x, bghW myJ mlFmyhj w), bghUf brhid xU eglUJntbwhU egUF khw br xbthW vW bghUgL kW tUtd tiwcslF-(i) bghUf brhid Xxgjid bjhlJ myhk, ntWtif buhffhfnth, jitJgz brYJtjnfh myJ w kW kW gaDfhfnth nkbfhs bgW X cik

khw;(ii) xgjg xidbragLJt gagL bghUfbrhJilik (bghUfshfnth myJVjhtJ ntW totnyh) bragL X cik khw;(iii)jtiz bfhKj (Hirepurchase) myJ jtizf _y gz brYJ l vj ng bghUfisxgil brj;(iv) bghUf vtiw nehf vjfhf (Fl fhy msFshD mythD)gagLJ cikiabuhffhfnth, jitJ gzbrYJtj _ykhfnth myJ w kWkWgaDfhfnth cik khw brj;(v) xUizfglhj rf myJ egf FGk, X cWdUFbuhffhfnth, jitJgzbrYJtj _ykhfnth myJ w kW kW gaDfhfnth bghUfis tHFj;(vi) cz bghUfshfnth myJ kj Ef bghUshfnth myJ (nghijnaw br myJ

nghijnaw brahj) VnjD ghdkhfnth Uw bghUfSfhd nritvw tifnyh myJ mjgFahfnth myJ vjifa KiwnyD mikjbghUf xU tHfyhdJbuhffhfnth, j


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itJ gzbrYJj myJ w kW kW gaDfhfnthbtd UFlJ mjifa tHf kWbghUf vj mjifa cikkhw, xgil myJ tHFtjhdJ, cikkhw, xgil myJtHFif brw eguh bragLwbghUf gid xW vW, cikkhw xgil myJtHFif bragl egdh bragLw mj bghUf bfhKj xW vd bfhsgLjntL;

sf-I.- xU rf (xU TLw rf cslfyhf) kw, Wtf myJ fHf vJ jcWdfSF buhffhfnth myJ j itJ gzbrYJtjfhfnth myJ w kWkW gaDfhfnth tf eltoif nghnjhthD mythD bghUfis tHf myJ gLbrj MatlbgWs brh cik khwkhdJ,j rl nehffSfhf braglgid xwhf bfhsgLj ntL.sf - II.- ika murhnyh myJ VnjD khy murhnyh bragL bghUfcik khwxbthWbuhffhfnth myJ j itJgz brYJtj _ykhfnth myJ wkW kW gaDfhfnth tf eltoif nghnjthD mythD j rl nehffSfhf braglgid xwhf bfhsgLj ntL.sf - III.- cik nfhuglhj myJgKjyhd myJ gLjglKoahj myJXil cilrfshdifahf cs giHa myJ gadw bghUf myJ ntlhbkd xJa bghU myJ

fbghUf cl bghUf 2-M (15)-M T sf (III)-FlgLsegfsh myJmikfsh, buhffhfnth myJjitJ gz brYJtjfhfnthmyJw kW kWga vjfhfnth tfeltoifnghnjhthD mythD bragl brhcik khw xbthW j rl nehffSfhf bragl gid xwhf bfhsgLjntL.sf - IV- xU fhua, juf, juF Kft, myJ mcwho (arhati), izKft (delcredre)myJ VyLgt myJ ntW vj bganyD miHfgL tf Kft Matf _ybuhffhfnth, jitJ gz brYJtjfhfnth myJ wkW kWgaMatfhfnthbrhJf bfhKj, gid, tHfmyJ gL Mat l bgWsbrh cik khw brtjhdJ, jrl nehffSfhf mjifafhua, juf, juF KftmyJ mcwho(arhati), izKft (del credre) myJVyLgt, myJ ntW vj bganyDmiHfgL tf Kft Mnahuh bragL bfhKj myJ gid xwhf bfhsgLjntL.sf -V- (a) bghUf tUkhW jkhynyna Ujh, gidmyJb fhKj xgjvF bragoUjhY, j rl nehffSfhf gidmyJ bfhKj j khynyna eilbgwjhf bfhsgLj ntL;(i) FJiufgl myJ cWgLjgl bghUfis bghWjne,gid myJ bfhKjxgj bragL neu; kW(ii) cWgLjglhj myJ vfhy bghUfis bghWj ne, gtuhnyh myJbfhKj brgtuhnyh kw jud xj, xJLF Kghf bgwglhY myJxJLF bgwglhY, gt myJ bfhKj brgt, gid myJ bfhKj

xgjJF xJL br neu;(b) xWF nkgl gy lf mika bgUF, bghUf gidmyJ bfhKj, xnuxgj vlgoUFlJ, (a)-vD T tifKiwf mj bghUfis bghWJ, mjifa lfxbthY jjxgjf Ugjhf fU mjFbghUJj ntL.sf - VI. - j rl mjFKuzhf vd mlUjnghY, tU nef, jgluL gidfmyJ bfhKjf, j rl nehffSfhf eilbgUgjhfbfhsgLjntL,-(a) bghUf xU Kjik tflUJ, mtuJ gid KftUF kW gid KftlUJbfhKj brgtUF khwgLnghJ; myJ ,(b) gidahslUJ thF KftUF kW thF KftlUJ mtuJ KjiktfUF bghUfkhwgLnghJ, nkfl uL ffY mj Kft, tUkhWUjh-

(i) bghUfis xU iy j W, mj W Kjiy mtuJ Kjik tfUF ntW iy jifkhUjh; myJ


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(ii) bghUfis xUiy jbfhKj brJ, mtiw mtUilaKjik tfUF ntW iy jJFifkhUjh; myJ(iii) mj Kjik tf rhghf mtuh nkbfhsgl gidf myJ bfhKjf, mtuhbragl bkhj tN myJ ffSF mtuJ KjiktfUF fzF bfhLfhk Ujh;(34) "izgoa"Schedulevwh, rlJl izfgl izgoa vWbghUgL;

(35) khy Statevwh jehL khy vWbghUgL(36) t iygoa tax invoicevwhkhy t fjf bghUfisw gbgw tf xUtuh kbwhUg bgw tfUF tHfgl jahf t fglij fhLwkW tFJiufgl Toa mjifa tufis bfhoUw xU iygoa vW bghUgL;(37) "tfjf bghUf" taxable goodsvwh, j rl ehfh iz goaFJiufglthW, yfglbghUf myhj w bghUf myJ mudh mif_ykhfyffgLs bghUf vWbghUgL;(38) "tfjf gid bjhif" taxable turnovervwh, xU tf jkJbkhj gidms tFJiufglKiwY, ff brj dUzfglthW t brYJtjFcshFgid bjhif vWbghUgL;(39) "kly cj Miza" Territorial Deputy Commissionervwh, 48- tft

kly Jiz Miza xUtuhfafgl eg vtU, vW bghUgL;(40) "bkhjgidbjhif" total turnover vwh, gid bjhif KGtJnkh myJ mjgFnah t Fshdjhf UjhY yhlhY, khy midJ tf lfY, xU tfmidJ bghUf, xL bkhj gid vWbghUgL;

(41) "gidbjhif" turnover vwh,bghUf thfgl myJ fgl myJ xgilbragl myJ tHfgl myJ (33)-M T brhygl ntW vjtifnyD, xU tfuhneuoahfnth myJ ntbwhUt _ykhfnth, j brhjfznyh myJ bjhUt fznyh, buhffhfnth myJ j itJgz brYJtjfhfnth myJ w kW kW gaDfhfnthKo bragl xL bkhj bjhif vW bghUgL; Mdh,xU eguh, mt, cikahsuhfnth,Rthd milkhd bgwtuhfnth, Fjifjhuuhfnth myJ ntW tif cikstuhfnth cs,khy cs y mtuh, glgl njiy, ug (aif ug, kugh kWgjlglhj ug midJ tiff kW juf) fyhf ntshik myJ njhlfiy cgbghUf gid _y ilf bgw bjhifahdJ, mtuJ gid bjhifUJ fglntL.sf -I.- "ntshik myJ njhlfiyjah" vwh, btWknd Jhik gLJj,juj,gFj myJ rhaRj fyhf, EfF jFilajhF bghUL, VnjD aa, ntamyJw gjl Kiwf


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fLkhd brj,jahj, gjLj, flikj, ehLj,Wj, bghUJj, nkgLJj, UJj,brgLj myJ ntiyia brj Mad brtjF nkbfhsglclgoif vjid cslF;(44) {a j gid zero rate salevwh, vj bghUf gidbah J t vJbrYjjfjhf yhk,Mdh, mj gid bjhlghd cL ttu mDkfjfjhd xU gidvW bghUgL.

3. t . Levy of taxes.

(1) (a) whose total turnover for a year is not less than rupees five lakhs: (1) (a) Every

dealer, other than a casual trader or agent of a non-resident dealer, whose total turnover for a

year is not less than rupees five lakhs and every casual trader or agent of a nonresident dealer,

whatever be his total turnover, for a year, shall pay tax under this Act. X MoF IJ yr%gh FFiwahf bkhj gid bjhifia bfhoUw jbra tf, kW btl thtf Kft myhj w tf xbthUtU, tJnghF jbra tf myJ btl thtfUilaKft xbthUtU mtj XuhLfhdmtuJ bkhj gid bjhifvtsthfUjhY, jrl goahd tbahiw brYJj ntL. 7 (1)(a),7(2),7(3),7(6),8(2) FORMS-(I,N,O,P)

7(1)(a), Every registered dealer liable to pay tax under the Act, other than a dealerwhoopted to pay tax under sub-section (4) of section 3 or section 6 or section 8 including

agent of a non-resident dealer andcasual trader, shall file return for each month in Form I on

or before 20th of the succeeding month, to the assessingauthority in whose jurisdiction his

principal place of business or head office is situated. Such return shall beaccompanied by

proof of payment of tax.

7(2) Every principal or head office shall include the turnover relating to the goods consigned

to the agent andfile a return in Form I for each month on or before 20th of the succeeding

month with the particulars of name and fulladdress of the agent, value of the goods sold or

purchased, tax collected on sale and tax paid on purchase by the agentalong with proof ofpayment of tax.

7(3) Every branch or agent of a dealer shall file a return in Form I, on or before the date on

which the headoffice or his principal has to file return, for the preceding month, to the

assessing authority under whose jurisdiction hecarries on business.

7(6) If a dealer receives or returns in any year any amount due to price variation, he shall

within thirty daysfrom the end of the year submit a return in Form N to the assessing

authority.

8(2) While determining the taxable turnover, in respect of a dealer other than those whoopted to pay taxunder sub-section (4) of section 3, section 6 and section 8, the post sale

charges and the amounts specified in thefollowing clauses shall, subject to the conditions

specified therein be deducted from the total turnover of a dealer.

[FORMS-(I,N,O,P) I-Value Added Tax Monthly Return ,N-Return showing the details of

amount received or returned due to price variation ,O-Notice of assessment and demand,P-

Notice of assessment and refund order].

(b) whose total turnover in respect of purchase and sale within the State, for a year, is

not less than rupees ten lakhs: Notwithstanding anything contained in clause (a), every

dealer, other than a casual trader or agent of a non-resident dealer, whose total turnover in

respect of purchase and sale within the State, for a year, is not less than rupees ten lakhs, shall

pay tax under this Act. (a) vD T vd mlUjnghY XuhoF

khyFshf bragL bfhKjmyJ gidia bghWjtiuyhd bkhj tf bjhif
http://www.tnvat.gov.in/English/VAT_FORMS/Form_I.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/Form_I.pdf


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gJ yr %ghF Fiwahj ms Uw jbra tfkW btl th Kftuyhj wtf, xbthUtU j rl goahd tbahiw brYJj ntL.(i) such dealer has not collected the tax under this act, he is not liable to pay the tax

under this act.

(ii) such dealer has collected the tax under this act, he is liable to pay tax under this act

and other provisions of this act shall apply to such dealer.

(2). Rate of taxPart B (5%) (or) C (14.5%) in First schedule:In the case of goodsspecified in Part - B or Part - C of the First Schedule, the taxunder this Act shall be payable

by a dealer on every sale made by him within the State at the ratespecified therein. 2-Mc tif KiwfSF cgL Kjyh iz goa gF BmyJ gF C- FJiufglbghUf ne j rlgoahd tahdJ khy tf xUtuh bragl gidxbth J m FJiufgl j t brYjgLj ntL.

(3). Input Tax Credit(ITC) Part B of C in First schedule: The tax payable under sub-section (2) by a registered dealer shall be reduced, in the manner prescribed, to the extent of

tax paid on his purchase of goods specified in Part - B or Part - C of the First Schedule, insidethe State, to the registered dealer, who sold the goods to him. g bragl tf xUtuh(2)-M c brYjjf tahdJ Kjyh iz goa gF-B myJ gF-CMat FJiufgl bghUf bfhKj nghJ mj bghUfis mtUF khyw gbgw tfl brYjgl msF tFJiufgl Kiw FiwfgLj ntL.

(4). Compounding provision 50 lakh (NO ITC CLAIM): Notwithstanding anythingcontained in sub-section (2), but subject to the provisions of subsection (1), every dealer, who

effects second and subsequent sales of goods purchased within the State, whose total

turnover, for a year, is less than rupees fifty lakhs, may, at his option, instead of paying tax

under sub-section (2), pay a tax, for each year, on his total turnover at such rate not exceeding

one per cent, as may be notified by the Government. Such option shall be exercised by thedealer, M c vd mls nghY Mdh (1)- c tif KiwfSFgL khyF bfhKj bragl bghUfis ulhtJ myJ mjF nkY gid brwkW MblhWF IgJ yr%ghF Fiwthf bkhj gid bjhifila tf xbthUtU,jdJ Ug njgo (2)-M c tia brYJtjF gyhf, xnth MoF jkJbkhj gid bjhif J WF xU GfhoF nkglhj mudh mif braglToa mjifa j t xiwbrYJj ntL.(i)who commences business, within 30 days from the date of commencement of the

business:mthwhd Ug njthdJ j rl bragl bjhla njUJ KgJ ehfSFmfgLj ntL.(ii) whose turnover relating to taxable goods is below rupees fifty lakhs during the previous

year,on or before the 30 th day of April of the year for which he exercises such option.(iii) Provided that such dealer shall not collect tax exceeding the rate notified by the

Government under this sub-section: Mdh mjifa tf j c murh mifbragl jFnkgL tia tNj TlhJ.

Provided further that such dealer shall not be entitled to input tax credit on goods purchased

by him: nkY, mjifa tf, mtuh bfhKj bragl bghUf J cL ttubgWtjF cik jF cilatuhf khlh;

Provided also that the dealer who purchased goods from such dealer shall not be entitled to

input tax credit on the goods purchased by him. mnjhLTl, mjifa tflUJ bghUfisbfhKj brj tf mtuh bfhKj bragl bghUf ng cL t tu bgWtjF

cikjFilatuhj TlhJ. 7(1)(c), 7(d), 7(6) [FORMS (K,N,O,P)


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7(1)(c) The option exercised under sub-section (4) of section 3 of the Act shall be final forthe financialyear and such option shall be exercised within thirty days from the date of

commencement of the Act or commencementof his business whichever is later.,

7(d) Every registered dealer who opts to pay tax under sub-section (4) of section 3 shall file a

return foreach month in Form K on or before 20th of the succeeding month to the assessing

authority along with proof of paymentof tax.7(6) If a dealer receives or returns in any year any amount due to price variation, he shall

within thirty daysfrom the end of the year submit a return in Form N to the

assessingauthority.

[FORMS (K,N,O,P) K-Value Added Tax monthly return for dealers paying tax under the

compound system under sub-Section (4) of section 3N-Return showing the details of amount

received or returned due to price variation ,O-Notice of assessment and demand, P-Notice of

assessment and refund order].

(5). Non vat-table Goods in Second Schedule: Subject to the provisions of sub-section (1),

every dealer, who deals in the goods specified in the Second Schedule, shall pay a tax, foreach year, on the sale or purchase of such goods, at the point and at the rate specified therein:

(1)-M c tifKiwfSF cgL ulh iz goa(Second Schedule) FJiufglbghUf thf brw tf xbthUtU, mjifabghUf gid myJ bfhKj Jxnth MoF m FJiufgl thwhd KidY, jY t xiw brYJj ntL:Provided that the dealer, who pays tax under this sub-section, shall not be entitled to input tax

credit on goods purchased by him.Mdh, j c tia brYJw tf, mtuhbfhKj bragl bghUfJ cL ttu bgWtjF cik jF cilauhj TlhJ. -7(1)(b),7 (6),8(2) [FORMS J,N,O,P].

7(1)(b), Every registered dealer who is liable to pay tax under sub-section (5) of section 3shall file a returnin Form J on or before 20th of the succeeding month to the assessing

authority in whose jurisdiction his principal place ofbusiness or head office is situated. Suchreturn shall be accompanied by proof of payment of tax:

7 (6) If a dealer receives or returns in any year any amount due to price variation, he shall


authority.

8(2)While determining the taxable turnover, in respect of a dealer other than those whoopted to pay taxunder sub-section (4) of section 3, section 6 and section 8, the post sale


specified therein be deducted from the total turnover of a dealer

[FORMS J,N,O,P]. J-Value Added Tax monthly return for dealers paying tax under the sub-

section (5) of section 3,N-Return showing the details of amount received or returned due toprice variation , O-Notice of assessment and demand, P-Notice of assessment and refund

order].

(6) Packing Materials Taxable Goods Packed: When goods are sold together withcontainers or packing materials, the rate of tax applicable to such containers or packing

materials, as the case may be, shall, whether the price of the containers or packing materials

is charged separately or not, be the same as those applicable to the goods contained or packed

and the turnover in respect of containers and packing materials shall be included in the

turnover of such goods.bghUf, bfhfyf myJgfSl nrJ gid bra gLifmjifa bfhfyf myJ nenfg g fL bghUfSF bghUj Toa t jkhdJ,

mj bfhfyf myJ g fL bghUf iyahdJ j flzkhf tNfglhYiybawhY, mjbfhfyf myJ g flglbghUfSF bghUJw msnynaUj
http://www.tnvat.gov.in/English/VAT_FORMS/form_k.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_k.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_j.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_j.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_j.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_j.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_k.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_k.pdf


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ntL; mj bfhfyf kWg fL bghUfis bghWj tiuyhd gid bjhifahdJmjifa bghUf gid bjhifcslfgLj ntL;

(7)Any packing material, in which exempted goods are packed, is exempt from tax,Where the sale of goods, packed in any container or packed in any packing material, in which

such goods are packed, is exempt from tax, then the sale of such containers or packingmaterials shall also be exempt from tax. Explanation.- For the purposes of sub-sections (6)

and (7), containers include gunny bags, tins, bottles and any other containers. bfhfyvY itfgL myJg fL bghU vY itJ g flgL fgl bghUf,t yF bgUjh, mjifa bfhfyf myJ g fL bghUf gid TltUJ yffgLj ntL:sf: (6) M kW (7) M c nehffSfhf bfhfyf vgJ nfh igf, jfubgof, Ff kWw bfhfyf vtiwcslajhF.

4. bghUf vtiw gagLJtjfhd cik jhd t . Levy of

tax on right to use any goods.(1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,

every dealer, shall pay, for each year, a tax on his taxable turnover, relating to the business of

rightto use any goods, for any purpose, which shall be arrived at after deducting the amounts

involved in the business of transfer of the right to use any goods for any purpose, in the

course of export of the goods out of the territory of India or in the course of import of the

goods into the territory of India, at such rates as specified in the First Schedule . j rlvd mlUjnghY Mdh, j rl tifKiwfSF cgL nehf vjfhfbghUfvtiw gagLJtjfhd cikfhd tf bjhlghf t fjf gid bjhif JxnthMLF tf xbthUtUtbahiw brYJj ntL; mJ a M gu viyF btnabghUf VWk bragL nghJ myJ a M gu viyF bghUf wFk

bragL nghJ nehf vjfhf bghUf vjid gagLJtjfhd cikia khWtfcslFw bghUfis bghWj ms csla bjhiffS ffglj , vlgL Kjyhiz goa FJiufglmjifa j tia brYjgLj ntL.

(2) The dealer, who pays tax under this section, shall be entitled to input tax credit on the

goods specified in the First Schedule, purchased by him in this State to the extent of the

output tax paid or payable, as may be prescribed.) j tia brYJw tftFJiufglToathW brYjgl myJ brYjjf WKjt msF khy mtuhbfhKjbragl Kjyh iz goa FJiufgl bghUf jhd cLt tuFcik jF cilatuhjntL.7(1)(a), 7 (6), 8(2) FORMS-(I,N,O,P).

7(1)(a), Every registered dealer liable to pay tax under the Act, other than a dealerwhoopted to pay tax under sub-section (4) of section 3 or section 6 or section 8 including





7 (6) If a dealer receives or returns in any year any amount due to price variation, he shall


authority.

8(2) While determining the taxable turnover, in respect of a dealer other than those whoopted to pay taxunder sub-section (4) of section 3, section 6 and section 8, the post sale


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specified therein be deducted from the total turnover of a dealer.

[FORMS-(I,N,O,P) I-Value Added Tax Monthly Return , N-Return showing the details of

amount received or returned due to price variation , O-Notice of assessment and demand, P-


5. xgjf gagL bghUfis khw brtj jhd t . Levyof tax on Transfer of goods involved in works contracts:

(1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,

every dealer, shall pay, for each year, a tax on his taxable turnover, relating to his business of

transfer of property in goods involved in the execution of works contract, either in the same

form or some other form, which may be arrived at in such manner as may be prescribed, at

such rates as specified in the First Schedule. j rl vd mlUjnghY, Mdh j

rl tif KiwfSFgL tf xbthUtU, gxgjf gagL tFJiufgl Toathwhdmjifa Kiw vlgl Toa, xgj gfis iwntWt csla tif, mnj totnyhmyJ w VnjD totnyh cs bghUf brhid khw brw mtj tf bjhlghdt fjfmtj gid bjhifJ Kjyhiz goa FJiufgljf tbahiwxbth MLFbrYJj ntL.

Explanation. - Where any works contract involves more than one item of work, the rate of taxshall be determined separately for each such item of work. xgj gf xWF nkglgdfis cslUFlJ, t jkhdJ mjifa xbthU g dF j jahfkhfgLj ntL.

(2) The dealer, who pays tax under this section, shall be entitled to input tax credit on goods

specified in the First Schedule purchased by him in this State.j t brYJ tfmtuh j khy bfhKj bragl Kjyh iz goa FJiufglbghUf JcL ttu bgwcik jF cilatuhj ntL.

{7(1)(a) Every registered dealer liable to pay tax under the Act, other than a dealerwhoopted to pay tax under sub-section (4) of section 3 or section 6 or section 8 including





8(2), While determining the taxable turnover, in respect of a dealer other than those whoopted to pay taxunder sub-section (4) of section 3, section 6 and section 8, the post salecharges and the amounts specified in thefollowing clauses shall, subject to the conditions

specified therein be deducted from the total turnover of a dealer8(5), The taxable turnover of the dealer liable to pay tax under section 5 on transfer of

property in goodsinvolved in the execution of works contract shall be arrived at after

deducting the following amounts from the totalturnover of that dealer, namely:-

9(2), The certificate that a dealer has no liability to pay or has paid the tax under section5, referred to inclause (b) of the first proviso to sub-section (1) of section 13 shall be in

Form S.

[FORMS I,N,O,P,S].I-Value Added Tax Monthly Return N-Return showing the details of

amount received or returned due to price variation ,O-Notice of assessment and demand, P-Notice of assessment and refund order,S-Form of statement of tax deduction at source].
http://www.tnvat.gov.in/English/VAT_FORMS/Form_I.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/Form_I.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_r.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_r.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/Form_I.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/Form_I.pdf


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6. g xgjfhuuh zfkhd jf t brYjgLj CompoundingRates for Works Contract:

(1) Notwithstanding anything contained in this Act, every dealer, may, at his option, instead

of paying tax in accordance with section 5, pay, on the total value of the works contractexecuted by him in a year, tax calculated at the following rate, namely:- j rl vdmlUj nghY, tf xbthUtU 5-MF za tif tia brYJtjF gyhfjkJ Ug njgo ML xWF mtuh iwntwgl g xgjf bkhj k JtU j fzlglthwhd tia brYjyh,

(i)FoKiw xgjgf(Civil WorksContractor) iwntwglFoKiwgf bkhj xgjkWFuLGfhL.Civil works contract two per cent of the total contract valueof the civil works executed;

(ii) FoKiw guhkgf xgjg(Civil WorksMaintenance) iwntwgl FoKiwguhkgf bkhjxgj kWF uL GfhL. Civil maintenance works

contract two per cent of the total contract value of the maintenance works executed;(iii) w xgjgf midJ iwntwgl gf bkhj xgj k WF IJGfhL. All other works contracts five per cent of the total contract value of the worksexecuted.

(2) Any dealer, who executes works contract, may apply to the assessing authority along with

the first monthly return for the financial year or in the first monthly return after the

commencement of the works contract, his option to pay the tax under sub-section (1) and

shall pay the tax during the year in the monthly instalments and for this purpose, he shall

furnish such return within such period and in such manner as may be prescribed. xgjgfisiw ntWw tf vtU, mj ahLfhd Kj khj tuiul myJ xgjg bjhla

d tU Kj khj tuiul (1)-M c tia brYJtjfhd jkJ Ug bjFtf mfhu mikF zg brayh. kW, mjMo nghJ tia khj jtizfbrYj ntL. kW j nehffhf mjifa tuiuia tFJiufgl mjifa fhymsFshf, mjifa KiwY bfhLj ntL.

(3) The option exercised under sub-section (1) shall be final for that financial year. (1) -Mcgo mfgl UgbjthdJ mj MLF WahdjhfUj ntL.

(4) A dealer, exercising option under sub-section (1) shall, so long as the option remains in

force, not be required to maintain accounts of his business under this Act or the rules made

thereunder except the records in original of the works contract, extent of their execution and

payments received or receivable in relation to such works contract, executed or under

execution. (1)-M c Ug bjid mw tf xUt mj Ug bjthdJeilKiw Uw tifY j rlgo myJ mj go bragl f go, xgj gf_y gUf, mt iwntw ms,iwntwgl myJ iwntwgLtUw mjifa gxgjf bjhlghf bgwgl myJ bgwjf bjhiff ga tuf ju jkJ tf FJfzFf vjid ng tUkhWnfhugLj TlhJ.

(5) The dealer, who pays tax under this section, shall not be entitled to input tax credit on the

goods purchased by him. j t brYJ tf mtuh bfhKj braglbghUfJ cL t tu bgw cik jFcilauhj TlhJ.

Explanation.- For the purpose of this section "civil works contract" includes civil works of

construction of new building, bridge, road, runway, dam or canal including any lining, tiling,painting or decorating which is an inherent part of the new construction and any repair,


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maintenance, improvement or upgradation of such civil works by means of fixing and laying

of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing,

partition, wall panelling, interior decoration, false ceiling, carpeting and extra fittings, or any

manner of improvement on an existing structure. j nehffhf, FoKiw xgjgf vwh a fLkhd aghd gFfshd mfiumikj, js ghj, tz RjmyJ

myfhu brjiy csla kW gGJ f brj, guhkj myJ jnghJ Uw mjifafLkhd mik J midJ tifahdjiu XLf, bkhir jiuXLf, gyiff, ff, ryitff kWfzho XLfis gj, Xa tiuj gsgsghFj, miwid id brj, Rtf gyifmikj, cw myfhu, bgh Tiu, jiu f mikj kW TLj bghUJjf brjnghw tif vj KiwnyD nkghL brj Ma tfyhd iy caJj fyhf a fllfLj, ghy, rhiy, XL ghij, mizfL myJ fhth mikj Ma Fo Kiw gf vWbghUgL;f{6(8),(7)(1)(e),(8)(4)}, [FORMS L,N,O,P,S].

6(8),Every registered dealer, who opted to pay tax at the rate specified in section 6 shallmaintain accountsshowing the details of contract with value and the payments received.

(7)(1)(e) Every registered dealer who opts to pay tax under section 6 or section 8 shall filea return for eachmonth in Form L on or before 20th of the succeeding month to the assessing

authority along with proof of payment of tax.

(8)( (4) On receipt of the return in Form N, the assessing authority shall pass orders(a) demanding the tax payable on the amount received due to price variation and shall serve

upon thedealer a notice in Form O; or

(b) refunding the tax due on the amount returned and shall serve upon the dealer a notice in

FormP.

FORMS - L-Value Added Tax monthly return for dealers paying tax under section 6 / 8,N-Return showing the details of amount received or returned due to price variation ,O-Notice

of assessment and demand, P-Notice of assessment and refund order.

THE TABLE

Sl.No. Type of works contractLabour or other charges as a percentage value of

the works contract

1. Electrical Contracts 15

2. All structural contracts 15

3. Sanitary contracts 25

4. Watch and / or clock repair contracts 50

5. Dyeing contracts 50

6. All other contracts 30
http://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdf


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6-A Payment of tax at compounded rate by brick manufacturers.

(1) Notwithstanding anything contained in this Act, every dealer manufacturing bricks may,at his option, instead of paying tax in accordance with the provisions of sub-section (2) of

section 3, pay tax, for each year, by way of composition the lumpsum linked with production

capacity of each kiln as specified in the Seventh Schedule.

(2) Every dealer, who opts for payment of tax under sub-section (1), shall apply to the

assessing authority on or before the 30th day of April of the year or within thirty days of

commencement of business, as the case may be and shall pay tax in advance during the year

in monthly installments and for this purpose, he shall furnish such returns, within such period

and in such manner, as may be prescribed;

Provided that for the year 2009-10, every dealer who opts for payment of tax under sub-section (1) shall apply to the assessing authority within two months from the date of

commencement of the Tamil Nadu Value Added Tax (Fourth Amendment) Act, 2009;

Provided further that in respect of dealers referred to in the first proviso, the total turnover for

the period prior to the date of opting for payment of tax under sub-section (1), shall be treated

as the total turnover for that year and the excess input tax credit, if any, on that date shall

lapse to the Government.

(3) The option so exercised under sub-section (2) shall be final for that year and shall

continue for subsequent years until the dealer becomes in eligible or withdrawals his option

in writing.

(4) The dealer who pays tax under this section shall not collect any amount by way of tax or

purporting to be by way of tax and shall not be entitled to input tax credit on goods purchased

by him.

(5) The dealer who purchases goods from such dealer shall not be entitled to input tax credit

on the goods purchased by him.

(6) Notwithstanding the operation of brick kiln for a part of the year, the dealer owning the

kiln and opted for payment of lump sum shall be liable to make payment of lump sum for the

whole year, except when the dealer opts for payment of lump sum for the first time after the

commencement of the business, he shall be liable to pay lump sum from the beginning of the

month in which he exercises his option.

Explanation.- For the purpose of this section, "brick manufacturer" means the manufacturer

of brick specified in sub-item (a) or (b) of item (22) in Part B of the First Schedule".

SEVENTH SCHEDULE

COMPOUNDED RATE FOR BRICK KILNS


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S.no BRICK KLIN CAPACITY Lumpsum

tax per

annum in

lieu of tax

payable

1 Kiln upto 16 chambers Rs.90,000/-2 Kiln with more than 16 chambers but not exceedings

26 chambers

Rs.1,20,000/-

3 Kiln with more than 26 chambers but not exceedings

32 chambers

Rs.1,80,000/-

4 Kiln with more than 32 chambers Rs.1,80,000/-plusRs.6,000/per

additional

chamber above32 chambers

{(7)(1)(f),}, [FORMS L1,]. (7)(1)(f) Every registered dealer who opts to pay tax under section 6-A shall file a returnfor eachmonth in Form L-1 on or before 20th of the succeeding month to the assessing


FORM L-1--Value Added Tax monthly return for dealers paying tax under section 6-A

7. cz kW ghdf J t jLevy of tax on food and drinks:

(1) (a) eru mjJ bgw cztff Star Hotels: Notwithstanding anything containedin this Act, but subject to the provisions of this Act,- every dealer shall pay tax on the sale of

ready to eat unbranded foods including sweets, savouries, unbranded non-alcoholic drinks

and beverages served in or catered indoors or outdoors by star hotels recognized as such by

Tourism Department of the State Government or Government of India and restaurants

attached to such hotels at the rate ofFourteen and half per cent of the taxable turnover; and,j rl vd mlUjnghY, j rl tifKiwfSF cgL khy mu RWyhJiwahnyh myJ a murhnyh eru mjJ bgw cztff vW mthW Vgbragl cztffY mjifa cztffSl nrJ izfglWo rhiyfY cnsnah myJbtlnyh gkhwgLw myJ tHfgLw f, fhu tiffcslfyhd tf d yhjczf kW kJ rhuh ghdf kW kJghdf cl clnd cgjF jahuhfcs tf

dyhj czbghUf gid J tfjf gid bjhif WF gehfiuGfhL vw msyhdj xbthU tfU tid brYJj ntL kW; cz kWghdf Jt j.:(b) eru mjJ myhjcztffOther Than Star Hotels: every dealer other than thosementioned in clause (a), shall pay tax on the sale of ready to eat un-branded foods including

sweets, savouries, un-branded non-alcoholic drinks and beverages served in or catered

indoors or outdoors by hotels, restaurants, sweet-stalls, clubs, caterers and any other eating

houses, at the rate of five per cent of the taxable turnover. tf xbthUtU cztff,Wo rhiyf, gff, kdk kwf, cz jahJ tHFgtf kW wczrhiyf MatDnsnah myJ btlfnynah gkhwgLw myJ tHfgLw

f, fhu czftf d yhj czf kWkJrhuh ghdf kW kJghdf cl


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clnd cgjF jahuhf cs tfdyhj cz bghUfgid J tfjf gidbjhif EhWF IJ GfhLvwj tid brYJj ntL.

Explanation I.- For the purpose of computing the total turnover under this sub-section, thepurchase turnover liable to tax under section 12 of this Act, shall be added to the sales

turnover.j c go bkhj gid bjhifia fzLwnehffhf, j rl 12-Mgo tF cshw bfhKjbjhifahdJ bkhj gid bjhiflnrfgLj ntL.

Explanation II.For the purpose of computing the total turnover under this sub-section, thesales turnover of all business units in a common premises sharing the common kitchen or

common employees shall be added to the sales turnover of the business unit having higher

turnover. j c go bkhj gid bjhifia fzL nehffhf, bghJthd rikayiwmyJ bghJthf gahsfis gL bfhSw bghJthd lbkh csmidJ tf myFf(units) gidbjhifahdJ, mfkhd gidbjhifia bgWs tf my (units)gidbjhifnahL nrfgLj ntL.

(2) The dealer, who pays tax under clause (a) of sub-section (1) shall be entitled to input tax

credit on the goods specified in the First Schedule purchased by him in the State. (1)-Mc (a) vD Tgotia brYJw tf, mtuh khyF bfhKj bragLKjyh iz goa FLs bghUf J cL ttu bgWtjF cik jFcilatuht.-(7)(1)(a), [FORMS L,N,O,P].

(7)(1)(a) Every registered dealer liable to pay tax under the Act, other than a dealerwhoopted to pay tax under sub-section (4) of section 3 or section 6 or section 8 including




proof of payment of tax.[FORMS I,N,O,P]. I-Value Added Tax Monthly Return N-Return showing the details of

amount received or returned due to price variation ,O- Notice of assessment and demand, P-


8. cztff,Wo rhiyf, gff Matwh zfkhd jft brYjgLj Payment of tax Compounding rates for hotels,restaurants, sweet-stalls, clubs, caterers and any other eatinghouses (specified 3 rd schedule):

(1) Notwithstanding anything contained in sub-section (1) of section 7, every dealer whose

total turnover is not less than rupees ten lakhs but not more than rupees fifty lakhs for

the year on the sale of ready to eat unbranded foods including sweets, savouries, unbranded

non-alcoholic drinks and beverages served in or catered indoors or outdoors by hotels,

restaurants, sweet-stalls, clubs, caterers and any other eating houses, may, at his option,

instead of paying tax in accordance with the provisions of clause (b) of sub-section (1) of

section 7, pay tax at the rate specified in the Third Schedule. 7-M (1)-M cvdmlUj nghY, cztff,Wo rhiyf, gff, kdk kwf, cz jahJtHFgtfkW w czrhiyfMatDnsnah myJ btlfnyh gkhwgLwmyJ tHfgLw f, fhu czf tf d yhj kJrhuh ghdfkW kJghdfcslfyhf, clndcgjF jahuhf cs tf dyhj cz bghUf gid J mj

MLfhd bkhj gidbjhifgJ yr %ghF FiwahkY, IgJ yr%ghF fhkYcs tfxbthUtU jkJ Ug njnfg 7-M (1)-M c (b) vD T


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tifKiwfSF za tif, tia brYJtjF gyhf _wh iz goa FJiufglj tbrYJj ntL.

1 (b) Notwithstanding anything contained in clause (a) of sub-section(1) of section 3, every

dealer in bakery products whose total turnover is not less than rupees ten lakhs but not more

than rupees fifty lakhs for the year on the sale of unbranded bakery products and other ready

to eat unbranded foods, may, at his option, instead of paying tax in accordance with the

provitions of sub-section (2), of section 3, pay tax at the rate specified in the third schedule.

Explanation.For the purpose of computing the total turnover under this sub-section, thepurchase turnover liable to tax under section 12 shall be added to the sales turnover.- jc goahd bkhj gid bjhifia fzLnehffhf 12-M go tFcshwbfhKj bjhifahdJ bkhjgid bjhifl nrfgLj ntL.(2) Every dealer, who opts for payment of tax under sub-section (1), shall apply to the

assessing authority on orbefore the 30th day of April of the year or within thirty days of

commencement of business, as the case may be, and shall pay tax in advance during the year

in monthly instalments and for this purpose, he shall furnish such returns, within such period

and in such manner, as may be prescribed. (1)-M cgo t brYJtjF Uikiabj brJs tf xbthUtU, mj Mo Vu f 30-M ehsnwh myJ mjFKdnuh myJ nenfg, tf bjhlaUJ KgJ ehfS Fshfnth, t fmfhu mikl zg brJ bfhSj ntL; nkY mj Mo nghJ f njhWkhdjtizfKdjhfnt YitYs tia brYLj ntL; kW j nehffhf tFJiufglToa mjifa KiwY, mjifa fhy msFshf mjifa tFJiufgl Toa t tu mifia mtmj ntL;

(3) The option so exercised under sub-section (2) shall be final for that year and shall

continue for subsequent years until the dealer becomes ineligible or withdraws his option in

writing. (2)-M c mthW bragl Ug bjthdJ, mj Mil bghWjtiu

WahdjhF kW tfjFia Hjhnyh myJ jdJ Ug bjid vGJU UgbgWbfhlhy, mJ d tUwMLfSF bjhlj ntL.

(4) A dealer liable to pay tax under sub-section (1) shall not collect any amount by way of tax

or purporting to be by way of tax on the sale of food and drinks. (1)-M cgo tbrYjFshw tf xUt t vw tifnyhmyJ t vgjhf ygLw tifnyh, czbghUis myJ ghdfis gid brtj J, bjhif vjid tNj TlhJ.

(5) The dealer, who pays tax under this section, shall not be entitled to input tax credit on

goods purchased by him. j go t brYJw tf, mtuh bfhKj braglbghUf J cL ttu bgWtjF cik jF cilatuhfkhlh.

THIRD SCHEDULE

COMPOUNDING RATES FOR HOTELS, RESTAURANTS, SWEET-STALLS,BAKERIES

S.no TURNOVER SLAB RATE OF

TAX

1 Where the total turnover exceeds Ten Lakhs of rupees

but does not exceed Twenty Five Lakhs of rupees.

Rs.12,000/-

per annum

2

Where the total turnover exceeds Twenty Five Lakhsof rupees but does not exceed Thirty Lakhs of rupees.

Rs.24,000/-per annum


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3 Where the total turnover exceeds Thirty Lakhs of

rupees but does not exceed Forty Lakhs of rupees.

Rs.36,000/-

per annum

4 Where the total turnover exceeds Forty Lakhs of

rupees but does not exceed Fifty Lakhs of rupees.

Rs.48,000/-

per annum

-(7)(1)(e),(8)(2) [FORMS L,N,O,P].

(7)(1)(e) Every registered dealer who opts to pay tax under section 6 or section 8 shall filea return for each month in Form L on or before 20th of the succeeding month to the assessing


(8)(2) While determining the taxable turnover, in respect of a dealer other than those whoopted to pay taxunder sub-section (4) of section 3, section 6 and section 8, the post sale


specified therein be deducted from the total turnover of a dealer(a) all amounts for which goods specified in the Fourth Schedule to the Act are sold;

(b) all amounts for which goods exempted by a notification issued by the Government under

section 30are sold or purchased, as the case may be, provided the terms and conditions, ifany, for the exemption in thenotification are complied with.

FORMS - L-Value Added Tax monthly return for dealers paying tax under section 6 / 8,N-

Return showing the details of amount received or returned due to price variation ,O-Notice

of assessment and demand, P-Notice of assessment and refund order.

9.jf, btfof kW eiff J t j. Levy of tax onbullion and jewellery:

(1) Notwithstanding anything contained in this Act, every dealer in bullion, precious stones,gold, platinum and silver jewellery including articles thereof, whatever be his turnover for the

year, shall pay tax on every sale made by him within the State, at the rate specified in Part-A

of the First Schedule. j rl vd mlUjnghY, bgh kW bt fofiykf ff, jf, shod, bteif, mtdhyhd bghUf cslfyhdtf brtf xbthUtU mj Mo gid bjhif vdthf UjnghY, mt khyFbrgid xbth J Kjyh izgoaA vD gF FJiufglj tiabrYJj ntL,

(2) The dealer, who pays tax under this section, shall be entitled to input tax credit on goods

specified in the First Schedule purchased by him in the State. j go tbrYJwtf,mtuh khy bfhKj braglKjyh iz goa FLsbghUfJ cLttu bgWtjFcik jF cilatuhth.ika rl74/1956.-(6)(7)&(8)(2) [FORMS I,N,O,P].

-(6)(7)Every registered dealer, who is a manufacturer of jewellery, shall also maintain anorder book showingthe particulars of name and address of customer placing order, date of

order, weight of bullion or old jewels receivedfrom the customer and date of delivery of

finished jewels. He shall also maintain the particulars of weight of bullionadded by him, if

any, out of his own stock.

(8)(2) While determining the taxable turnover, in respect of a dealer other than those whoopted to pay taxunder sub-section (4) of section 3, section 6 and section 8, the post sale

charges and the amounts specified in thefollowing clauses shall, subject to the conditionsspecified therein be deducted from the total turnover of a dealer
http://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_p.pdfhttp://www.tnvat.gov.in/English/VAT_FORMS/form_n.pdf


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(a) all amounts for which goods specified in the Fourth Schedule to the Act are sold;

(b) all amounts for which goods exempted by a notification issued by the Government under

section 30are sold or purchased, as the case may be, provided the terms and conditions, if

any, for the exemption in thenotification are complied with.

[FORMS I,N,O,P]. I-Value Added Tax Monthly Return N-Return showing the details ofamount received or returned due to price variation ,O- Notice of assessment and demand, P-


10.1956-M ML ika gid rl g bragl tffshbfhKj bragl bghUf J t. Tax on goods purchased bydealers registered under Central Act - 1956.

Notwithstanding anything contained in this Act, every dealer registered under sub-section (3)

of section 7 of the Central Sales Tax Act, 1956 shall, whatever be the quantum of his

turnover, pay tax, for each year, in respect of the sale of goods with reference to the purchase

of which he has furnished a declaration under sub-section (4) of section 8 of the said CentralAct, in accordance with the provisions of this Act . j rl vd mlUj nghY,1956-M ML ika gid rl 7-M (3)-M c go g bragl tfxbthUtU,mtj gid bjhif ms vdthfUj nghY, j rl tif KiwfSF zatif nkbrhd ika rl 8-M (4)-M c goahd sifbahiw vjbfhKjYfhf mt mUwhnwh mj bjhlghd bghUf gidia bghWj tiuxnth MLF tia brYJj ntL. 74/1956 vD vlika rlgo g bragltffshbfhKj bragl bghUf J t.

11 . fU jhd t. Levy of tax on sugarcane.

(1) Notwithstanding anything contained in this Act, every dealer shall pay a tax on the lastpurchase of sugarcane, excluding sugarcane setts, in the State, at the rate specified in the

Second Schedule. j rl vd mlUj nghY, khy fQ fUf(ijfUf) fyhf fUf fil bfhKj J ulh iz goa FJiufglj tbahiwbrYJj ntL.

(2) The manufacturer of sugar shall not be entitled to input tax credit on the last purchase of

sugarcane. rfiu cgahs, filahf bfhKj br fU jhd cL ttubgWtjF cik jF cilatuhfkhlh.

12. bfhKjt j. Levy of purchase tax:

(1) Subject to the provisions of sub-section (1) of section 3, every dealer, who in the courseof his business purchases from a registered dealer or from any other person, any goods (the

sale or purchase of which is liable to tax under this Act), in circumstances in which no tax is

payable by that registered dealer on the sale price of such goods under this Act, and either -3-M (1)-M c tifKiwF cgL j rl go mjifa bghUf gid Jgbgwtfuh t vJ brYjjfjhf yhj Niy, g bgw tfxUtlUJ myJw eg vtlUJ bghUf vjid jkJ tf eltoif nghJ bfhKj (jrl tFshf jf gidmyJ bfhKj) brw tf xbthUtU kWbfhKjtia j.(a) consumes or uses such goods in or for the manufacture of other goods for sale or

otherwise; or, gidfhf myJ wthW kw bghUfis jahg myJjahgjfhfmjifa bghUfisEfthwhdh myJ gagLJthuhdh,myJ,


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(b) disposes of such goods in any manner other than by way of sale in the State; or khy gid vw tif myhj wKid vY mjifa ruFfis mwgLJthwhdh,myJ,

(c) despatches or carries them to a place outside the State except as a direct result of sale or,

purchase in the course of inter-State trade or commerce or in the course of export out of the

territory of India; or, khyfSilnaahd tjf myJ tf eltoif nghJ myJ aMgu viyF btna VWk bragLnghJ gid myJ bfhKj neilahdisthf myhk khyF btna Uw XlFtiw mDtjdh myJ vLJbrtjhdh;

(d)(1) installs and uses such goods in the factory for the manufacture of any goods, shall pay

tax on the turnover relating to the purchase aforesaid at the rate specified in the Schedules to

this Act. bghUf vtiw jahgjfhf bjhyf mjifa bghUfis WgagLJthwhdh mt j rl iz goaf FJiufgl j nkbrhd bfhKjbjhif Jtia brYJj ntL.

(2) Notwithstanding anything contained in clause (24) of section 2, the dealer who pays taxunder sub-section (1) shall be entitled to input tax credit on the goods specified in the First

Schedule. 2-M (24)-M T vd mlUj nghY (1)-M cgot brYwtf, Kjyh izgoa FJiufgl bghUf J cL t tu bgWtjF cikjFilatuhj ntL.

13. xgjgf tUth_y tia oj brj. Deduction of taxat source in works contract (TDS- 2%,5%):

(1) Notwithstanding anything contained in this Act, every person responsible for paying any

sum to any dealer for execution of works contract shall, at the time of payment of such sum,

deduct an amount calculated, at the following rate, namely:- j rl vd mlUjnghY, tf vtUF xgjgfis iwntajfhf bjhif vij brYJ bghWila egxbthUtU mjifabjhifia brYJ neu tUxgjgf tUth_y tia ojbrj ntL, mjhtJ:-

(i)FoKiw xgjgf mjifa tfUF brYjgljf bkhj bjhifWF uL GfhL.civil works contract two per cent of the total amount payable to such dealer;;

(ii)FoKiw guhk gf xgjgf mjifa tfUF brYjgljf bkhj bjhifWF uL GfhL. civil maintenance works contract two per cent of the total amount

payable to such dealer;.

(iii) w xgjgf midJ mjifa tffSF brYjgljfbkhj bjhifWF IJGfhL. All other workscontracts five per cent of the total amount payable tosuchdealers:;

Provided thatNo deduction under sub-section (1) shall be made where tuiu:Mdh, tUnef (1)-Mc go,

(a) no transfer of property in goods (whether as goods or in some other form) is involved in

the execution of works contract; ormjifa xgjgfis iwntWif (bghUfshD rmyJ ntW VnjD tothD r) gagLjgL bghUf vJ khw braglhjlJ;myJ,


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(b) Transfer of property in goods (whether as goods or in some other form) is involved in the

execution of works contract in the course of inter-State trade or commerce or in the course of

import; or, khyfSilnaahd tjf myJ tf myJ wFk brJ nkbfhsgLxgj gfis iwntWif (bghUfshD r ntW VnjD toyhD r) mgbjhlghd bghUfis khw brj; myJ,

(c) The dealer produces a certificate in such form as may be prescribed from the assessing

authority concerned that he has no liability to pay or has paid the tax under section 5 . tf,jh t brYJ flghL cilatuy vgjhf myJ 5-M go tia brYsh vgjhfbjhls tf mfhu miklUJ tFJiufgl mjifa toyhd rhj xid jhfbrwlJ; oj vJ bragLj TlhJ .

Provided,further that no such deduction shall be made under this section, where the amount

or the aggregate of the amount paid or credited or likely to be paid or credited, during the

year, by such person to the dealer for execution of the works contract including civil works

contract does not or is not likely to, exceed rupees one lakh.tuiu nkY, mj Mo nghJFoKiw xgjgf cslfyhf xgjgfis iwntWtjfhf mj tfUF mjifa eguh

brYjgl myJ tuitfgl myJ bgUghY brYjglcs myJ tu itfgl bjhif myJbkhj bjhifahdJ X yr %ghFfhjlJ myJ bgUghY fhJ vW cslJ j go oj vJ bragLj MfhJ;

sf - j nehffhf--(a) the term person shall include "eg" vw brh,-(i) the Central or a State Government ika muirnah myJ xU khy muirnah;(ii) a local authority; csh mfhu mik xiwnah;(iii) a corporation or body established by or under a Central or State Act; xU ika myJ khy rlxdh myJ mjgo mikfgl xU fHfijnah myJ FGkijnah. ika rl1/ 19 56.(iv) a company incorporated under the Companies Act, 1956 including a Central or State

Government undertaking; ika myJ khy mu bghWngWtd cl 1956-M MLWkfrlgo mikJ cUthfgl Wtdxiwnah;(v) a society including a co-operative society; TLw rf cl xU rfijnah;(vi) an educational institution; orf Wtd xiwnah; myJ(vii) a trust; bghWgh mik xiwnah;cslF;

(b)The term civil works contract shall have the same meaning as in the Explanation tosection 6 "FoKiw xgjgf" (Civil WorksContract) vwh, 6-M fhd sfcsthwhd mnj bghUisnabfhoUj ntL.

(2) Any person making such deduction shall deposit the sum so deducted to such authority, in

such manner and within such time, as may be prescribed.mjifa oj br eg vtU,mthW brj ojij mjifa mfhu mikl, tFJiufgl Toa mjifa KiwYfhyFS itL brj ntL;

(3) Any person who makes the deduction and deposit, shall within fifteen days of such

deposit, issue to the said dealer a certificate in the prescribed form for each deduction

separately, and send a copy of the certificate of deduction to the assessing authority, having

jurisdiction over the said dealer together with such documents, as may be prescribed.mj tojij itL br eg vtU, mthW itL brj gidJ ehfSF,nkbrhd tfUFxbthU ojF jjna, tFJiufgl got rhjo xiw tHFj ntL. mJlmtf gF J mfhutu bfhLs tf mfhu mikF, tFJiuf glToamjifa MtzfSl, t oj brj rhj xU goia (copy) mDj ntL.


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(4). On furnishing a certificate of deduction referred to in sub-section (3), the amount

deposited under sub-section (2), shall be adjusted by the assessing authority towards tax

liability of the dealer under section 5 or section 6 as the case may be, and shall constitute a

good and sufficient discharge of the liability of the person making deduction to the extent of

the amount deposited: (3)-M c Flgl t ojfhd rhj xiw

gjDgglj ng nenfg (2)-M c go itL bragl bjhifia, 5-Mgoahd tftbrYJ flghonfg t fmfhu mikgh tu itJ


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(3) The certificate of deduction of tax referred to in sub-section (3) of section 13 shall be in

Form T.

(4) The notice in writing, indicating the amount payable under the Act, referred to in sub-

section (5) ofsection 45 shall be in Form U.

[FORMS-R,S,T]. R-Form of statement of tax deduction at sourceS-Form of certificate to be

furnished by the works contractor who has no liability ,T- Form of certificate of deduction of

tax at source.

14. t tuit U mDj. Reversal of tax credit:(1) Where a purchasing dealer has returned the goods to the seller for any reason, the input

tax credit claimed already on the purchase by the dealer shall be liable to reversal of tax

credit on such goods returned, in the manner as may be prescribed. vj fhuzij KLbfhKj brj tf w tfUF bghUfisU mDthnuahdh mj tfuh braglbfhKj J tu itfgl cL t tuthdJ tFJiufgl Toa Kiw Ug bgwglmjifa bghUf jhd ttuF vkhLfSF cshf ntL.

(2) Where a selling dealer has received back the goods as a result of sales return or

unfructified sale, the output tax paid or payable thereon will be reduced, adjusted or refunded

in the manner as may be prescribed.Ua gid myJ Kowhjgid fhuzkhf gidbrj tf mj bghUfisUg bgWlJ, mj J brYjgl myJ brYjjfWKjtahdJ tFJiufgl Toa Kiw FiwfgLjnyh, r bragLjnyh, myJ UbfhLfgLjnyh ntL.: 10(6).

10(6)(a) After availing input tax credit, if any, dealer who purchases goods returns thegoods and getscredited the price and tax paid, the tax credit so availed shall be reversed, only

when

(i) the purchase was included in the return; and(ii) the goods were returned within a period of six months from the date of purchase by him.

(b) Where a dealer who sells goods after paying tax, receives back his goods, he may deduct

such taxamounts paid from the tax payable in the returns of following months only when, -

(i) in respect of sales return, -

(A) the sale was included in the return and the tax paid;

(B) the goods were received back or returned within a period of six months from the date

ofsale;

(C) the price of the goods and the tax, if any, charged thereon were refunded in full to

thebuyer; and

(D) the credit note shall contain the date and serial number of the invoice on which thetaxwas originally charged and brought to account.

(ii) in respect of unfructified sale,-

(A) the sale was included in the return and tax paid; and

(B) the goods were received back within a period of thirty days from the date of sale.

(C) Wherever any credit notes are to be issued for discount or sales incentives by any dealerto

another dealer after issuing tax invoice, the selling dealer shall pass a credit notewithout

disturbing the tax component on the price in the original tax invoice, so as toretain the

quantum of input tax credit already claimed by the buying dealers as well as notto disturb the

tax already paid by the selling dealer.

15. yffgl gid. Exempted sale.
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Sale of goods specified in the Fourth Schedule and the goods exempted by notification by the

Government by any dealer shall be exempted from tax. tf vtuhY gid braglehfh iz goa FJiufgl bghUf kW mudh mif thyhfyffgl bghUf tUJ yffgLj ntL.

16.VWk kW wFk bragl bghUfis bghWjtiuyhdtf. Levy of taxes in respect of imported and exported goods:

(1) In the case of goods imported into the State either from outside the territory of India or

from any other State, the stage of levy of tax shall be deemed to commence at the stage of the

sale or purchase effected immediately after the import of such goods; a viyFmghUnjh myJ ahYs w khyf UnjhbghUf khyF wFkbragL ne, mjifa bghUf wFkia mLJ cldoahf d bragL gidmyJ bfhKjiy tf ntoa flbjhlFtjhf fUjgLj ntL.

(2) In the case of goods exported out of the State to any place outside the territory of India or

to any other State, the stage of levy of tax shall be deemed to conclude at the stage of sale orpurchase effected immediately before the export of such goods: khyUJ a viyFbtnyh myJ VnjD xU khynfh,bghUf VWk bragL ne, mjifabghUf VWkia mLJ cldo Kdjhf bragL gidmyJ bfhKj iy tfntoa fl Kowjhf fUjgLj ntL.Provided that in the case of goods exported out of the State to any place outside the territory ofIndia, where the sale or purchase effected immediately before the export of such goods is under sub-section (3) of section 5 of the Central Sales Tax Act, 1956, a sale or purchase in the course of export,the series of sales or purchases of such goods shall be deemed to conclude at the stage of the saleor purchase immediately preceding such sale or purchase in the course of export. Mdh, khyUJ a viyF mgh VWk bragL bghUfis bghWjne, mF

ikarl74/1956 bghUfis bghWjne, mF bragL gid myJ bfhKjyhdJ,mjifa bghUf VWkia mLJcldo Kdjhf, 1956- M ML ikagid trl 5-M (3)-M cgo bragLlJ, VWknghJ bragL gid myJbfhKj, kW mthwhd bjhl bghUf gid myJ bfhKj mthW VWknghJ bragL gid myJbfhKjYF cldo Kdjhf bragL gid myJ bfhKjiynyna Kowjhf fUjgLj ntL.

17. bkF bghW Burden of proof (provide the proof oftransaction):

(1) For the purpose of assessment of tax under this Act, the burden of proving that any

transaction or any turnover of a dealer is not liable to tax, shall lie on such dealer. j rlgo tf br nehffhf xU tf vj tf-Kid (Transaction) myJ vj gidbjhifahdJ t Fshfntoaiy vgij bkF bghW mjifa tfiuna rhU.

(2) For the purpose of claim of input tax credit, the burden of proving such claim shall lie on

such dealer. cL ttuit (Input Tax Credit)nfhU nehffhf, mjifa nfhifiabkF bghW mjifa tfiu rhjjhF.

(3) Notwithstanding anything contained in this Act or in any other law for the time being in

force, a dealer in any of the goods specified in the Second Schedule liable to pay tax in

respect of the first sale in the State shall be the first seller of such goods and shall be liable to

pay tax at the rate specified in the Second Schedule on his turnover of sale relating to such

goods, unless he proves that the sale or purchase, as the case may be, of such goods hadalready been subjected to tax under this Act. j rl myJ mnghijFeilKiw cs


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w VnjD rl vYvd mlUj nghY, khyKjyh gid bghUL tbrYjFshw ulh izgoa FJiufgl bghUf tf br xU tfmj bghUfKj gidahsuhf UgjhffUjgLth. nkY, mj bghUfgidahdJmyJ nenfg bfhKjyhdJ, j rl t FshfgLsJ vgij mtbkjhy mj bghUfis bghWjtiuyhd gid bjhif J ulh iz goa

FJiufgl j t brYjflghLilatuhj ntL.

18. {a j gid Zero-rate sale. (5- th schedule):

(1) The following shall be zero rate sale for the purpose of this Act, and shall be eligible for

input tax credit or refund of the amount of the tax paid on the purchase of goods specified in

the First Schedule including capital goods, by a registered dealer in the State, subject to such

restrictions and conditions as may be prescribed:- j rl nehffhf tUgit {a jgidahf UjntL kW tFJiufgl Toamjifa tiufLfSF gjidfSF cgLkhy gbgw tf xUtuh KjL ruFf cslfyhf Kjyh iz goaFJiufgl bghUf bfhKjYfhf brYjgl t bjhifa cL t tu bgWtjnfhUgbgWtjnfh jFilahj ntL.ika rl74/1956.

(i) A sale as specified under sub-section (1) or (3) of section 5 of the Central Sales Tax Act,

1956; 1956 M ML ika gid trl 5-M (1)-M myJ (3) M cgoFJiufgl gidbahW;

(ii) Sale of goods to any registered dealer located in Special Economic Zone in the State, if

such registered dealer has been authorised to establish such units by the authority specified by

the Central Government in this behalf; and ika murh J FJ FJiufgl mfhumikdhmjifa myFfis WtjFmfhukfgLs mjifa g bgwtfmfhukfgoUghuhdhkhy jbghUshjhu klymikJs mjifa g bgw

tf vtUF bragL bghUf gid;kW,(iii) Sale of goods to International Organisations listed out in the Fifth Schedule. Ijh izgoagoalgl gdhL WtdfSFbragL bghUf gid.

Circular No.9/2013 Dated: 24.07.2013 The Department is consistently taking a view that benefits

of zerorating are available only to units located in SEZ as provided under TNVAT Act. It is to be

mentioned that there is no specific provision for zerorating the sales of contractors of Developer

or Co-developer of SEZ under the TNVAT Act, 2006. Further, sale of goods, involved in the

execution of works contract, to any registered dealer located in SEZ in the State is not zero-rate

sale, as those goods are not exported as such or consumed or used in the manufacture of other

goods that are exported as required under Section 18(2) of the TNVAT Act, 2006. The

transactions in the nature of works contract are therefore liable to be taxed at the rates specified in

the First Schedule to TNVAT Act, 2006 whether undertaken by contractor or sub-contractor and

the payment is subjected to TDS.

It is also to be mentioned that exemption notifications are issued by the Government on the sale

of any goods for use in execution of projects by main or sub-contractors of any dealers who have

entered into agreement directly or indirectly with certain SEZ developers in Tamil Nadu like

Nokia India Private Limited, Cheyyar SEZ Developers Private Limited and Foxconn India

Developer Private Limited based on the commitment given in the MoU signed with these

companies on case to case basis only.

Therefore, Government are vested with powers to grant exemption to a person on case to case

base only.


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Therefore, it is made clear that zero-rating is applicable as provided under Section 18 of TNVAT

Act and the benefits of zero-rating are not extended to any other categories of dealers or

transactions unless Government issues order to that effect.

This circular cannot be made use of for legal interpretation of the provisions of law, as it is

clarificatory in nature.Ijh izgoa({a t j gid)

(18-M f (1) -M cit fhf)gdhL Wtdf goa {a t j gid

tirv gdhL Wtd bga

1 gdhL bjhyhs mYtyf2 Ia ehL FHijf ey a

3 Ia ehL ts l4 Ia ehL f, ma kW gghL Wtd5 Ia ehL cz kW ntshik Wtd6 Ia ehL jft ga7 ahYs Ia ehL uhQt ghitahsf FG8 Ia ehL kf bjhif fzL M mYtyf9 Ia ehL bjhEg cj tha10 cyf Rfhjhu Wtd11 cyf t12 The United Nations Industrial Development Organisation

13 The United Nations High commisioner for Refugees

14 The Asian Development Bank-(11).[FORM- W]

-(11)(1) The assessing authority shall issue refund of amount specified in Form P withinninety daysfrom the date of service of the said Form, failing which the assessing authority

shall also pay the interest at the rateprescribed under the Act along with such refund amount.

(2) The dealer who claims refund due to sale effected by him under sub-section (1) of section

18 shall filean application in Form W to the assessing authority along with copies of invoices

or bills of related purchases within onehundred and eighty days from the date of accrual of

such claim. The assessing authority after verification of thecorrectness of the claim, shall

issue refund within ninety days from the date of the receipt of the application in Form W.

FORM- W-Application form for refund to be filed by dealers effecting zero rated sales

(2) The dealer, who makes zero rate sale, shall be entitled to refund of input tax paid or payable byhim on purchase of those goods, which are exported as such or consumed or used in themanufacture of other goods that are exported as specified in sub-section (1), subject to suchrestrictions and conditions as may be prescribed. {a j gid brw tf, mt mjifabghUfis, mjhtJ mthW VWk bragL myJ EfugL myJ (1)M cFJiufglthuhd VWk bragl w bghUfisjahg gagLJw bghUfisbfhKj brnghJ mtuh brYjgl myJ brYjgl Toa cL tid tFJiufglToa mjifa fLghLfSF gjidFgL Ug bgWcik bgw jFilatuht.

(3) Where the dealer has not adjusted the input tax credit or has not made a claim for refundwithin a period of one hundred and eighty days from the date of accrual of such input tax
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credit, such credit shall lapse to Government. mtf cL t tuid rflhjlJ(adjusted) myJ mjifacL ttu bgwToa (accrual) njUJ W vgJ ehf(180-one eighty days) mlaxU fhy msFshf Ug bgWtjfhd nfhifia, mtbrUfhjlJ, mjifa tuthdJ muRF nrj ntL.

19.cL ttu Input tax credit.19. (1) ITC Allowed first Schedule Goods:There shall be input tax credit of the amount oftax paid or payable under this Act, by the registered dealer to the seller on his purchases of

taxable goods specified in the First Schedule :gbgw tfuh t brYjjf, Kjyh izgoa FJiufgl bghUfis bfhKj brtj ng,j rlgo gidahsUFbrYa myJ brYjjfjhf cstbjhiffhd cLttu UjntL..tuiu:- Mdh, cL t tu nfhU gbgwtf, mjifa bfhKj ng brYjjfjhfMs tahdJ tFJiufgl Kiw mtuhbrYjgLsJ vgij Wj ntL.-6(9),10(2).

-6(9)Every registered dealer, who claims input tax credit shall maintain an input tax

adjustment accou

final vat1

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