Uttrakhand VAT Act, Form 3 B/Form 11 - Rules & Procedures

[PAWAN KUMAR SHARMA]

We have a plant at Haridwar and from haridwar we are procuring most of our raw materials & packing materials.

We want to know the procedure to get the same at concessional rates (From 4.5% to 2 %) against Form 3B/ Form 11. Presently, we have 95% as stock transfer and 5% as sale in Uttrakhand.

1. The eligibility & procedure to get the raw materials & packing material at concessional rates ?

2. Is there any specific limit/restiriction for using Form 3B/Form 11, in relation to Stock Transfer Vs Sales in Uttrakhand, pls advice ?

 

[YAGAY and SUN]

Kindly refer Section 4 (7) read with Rule 23 (1) in this regard.  Further, goods which are intended for purchase on concessional rate of tax should be incorporated in your registration cetrificate and must be part of Bill of Material.

Furhter, get it confirmed from your counsel / concerned VAT Department.

[jyoti Raj]

Mr, Pawan

Under Uttarakhand Vat Act  you acn purchase rawmaterial etc against form 11 at the concessional rate of 2% . But as in your situation , your 95% of the manufactured goods are stocked transfered , in such case it is not advisable to use form 11 . As per Sectrion 4(7)(e) is the goods manufactuyred from the raw material purchased against form 11 is stock transfered in such case one has to pay an amount equal to 2% of amount of stock transfered & the the allowability of input tax credit will be as per section 6(3) prov-1.

[PAWAN KUMAR SHARMA]

Mr, Sir,

Refer your below reply,

"Under Uttarakhand Vat Act  you acn purchase rawmaterial etc against form 11 at the concessional rate of 2% . But as in your situation , your 95% of the manufactured goods are stocked transfered , in such case it is not advisable to use form 11 . As per Sectrion 4(7)(e) is the goods manufactuyred from the raw material purchased against form 11 is stock transfered in such case one has to pay an amount equal to 2% of amount of stock transfered & the the allowability of input tax credit will be as per section 6(3) prov-1."

 

before 07.01.2010, instead of 2% of amount of Stock transfered,

it was "the difference between the amount of tax on the sale or purchase of such goods payable under this sub-section and the amount of tax payable under any other provisions of the Act."

My query is whether the amount payable as difference would be available for Input Tax credit or Not ? If yes, under what sections.

Thanks

 

AI Summary

Concessional VAT rate on raw materials may trigger payment on stock transfers and affect input tax credit eligibility.
Raw materials and packing materials may be purchased at a concessional VAT rate against Form 11 if the goods are listed in the dealer's registration certificate and included in the bill of material. Where manufactured goods made from concessional inputs are stock transferred, a tax adjustment equal to the concessional levy on the stock transfer value becomes payable, and the allowability of input tax credit in such cases follows the statutory rule governing input tax credit and its proviso; historical calculation methodology differed previously and its input credit treatment is queried.