Returns under the Andhra Pradesh
Value Added Tax Act, 2005

Indirect Taxes

The Andhra Pradesh Value Added Tax Act, 2005 replaced the APGST Act, 1957 with effect from 1-4-2005. There has been substantial changes in the format of returns/applications etc., under the new Act. This is an attempt to explain in brief about the turnover returns to be filed by the VAT dealers. The APVAT Rules, 2005 prescribed in all 103 documents in the form of applications, returns, certificates, notices, orders and registers. Of these, 68 relate to dealers and 35 are for use by the Department. The following is the break up for different categories of documents to be filed, in so far as they relate to dealers, both VAT and TOT and others.

Description TOT VAT COMMON & OTHERS

Turnover Returns relating to Vat Dealer

Depending upon the circumstances of the case, a VAT dealer has to submit returns in forms VAT 200, 200A, 200B, 200C, 200D, 200E, 200F, 213, 225, 502 and 503.

Form VAT 200

Under Rule 23 (1) of the Rules, every VAT dealer has to submit this return to the assessing authority within 20 days after the end of the tax period (generally a calendar month). It shall be completed in duplicate and one copy must bear the acknowledgment of the tax office. Commercial Taxes Department has issued Leaflet 07 containing a check list for completing VAT 200 return. Guidelines contained in the Leaflet are explained hereunder. There are 25 boxes in this return. If you have no entry for a box, you must insert ‘NIL’ in that box.

Box 04 – If there are no purchases and no sales in the month, you have to cross this box. If this box is crossed, there is no need to complete other boxes except box 25, which is a declaration. The only exception is, if there is an entry in box 05 (ITC brought forward from the previous month), you have to necessarily complete either box 23 (refund of ITC) or box 24 (ITC carried forward).

Box 05 – The amount of ITC mentioned in box 24 or 24(b) in the VAT 200 return of the previous month has to be automatically brought forward into this box.

Box 06 – ‘Exempt or non-creditable purchases’

You have to enter the value of purchases on which no VAT was charged or on which VAT was charged but no credit is allowed in box 6 (A). You have to include (a) purchase value of goods exempt from tax, mentioned in Schedule I, (b) that portion of the value on which ITC cannot be claimed (ITC restricted due to applying A x B/C formula), (c) Value of goods imported from outside the territory of India, (d) Value of goods purchased from the other States, (e) Value of goods received on transfer basis from the other States, (f) Value of goods purchased from other than VAT dealers in A.P. and (g) Value of goods purchased from a VAT dealer, in respect of which, you do not possess an original VAT tax invoice. Do not enter the purchase value of goods in the negative (ineligible) list specified in Rule 20(2) of Rules. You need not enter anything in box 6(B), which is fully shaded, as no ITC is allowed on these purchases.

Box 07 – Net value of goods purchased by paying VAT of 4% in the State has to be entered in box 7 (A). VAT paid thereon has to be entered in box 7(B). For making entries in 7(B), you have to first fill up Form VAT 200A, wherever applicable. (Same holds good for 8(B) and 9(B) also). However, if you have sales of exempt goods or exempt transactions (stock transfers to other States), your ITC gets reduced due to applying the formula A x B/C. Then, only the eligible input tax amount has to be entered in box 7(B). You have to make backward calculation of corresponding purchase value and enter the same in box 7(A). For example, input tax for the month is Rs.100, on the purchase value of Rs.2500. However, ITC is only Rs. 80 due to making exempt sales and exempt transactions. Then in box 7(B), you should enter Rs. 80 and in box 7(A), you should enter Rs. 2000 (corresponding to the amount of Rs. 80 @ 4%). The balance purchase value of Rs. 500 is to be added to the figure in box 6(A) above (point (b) against box 06).

Box 08 – Net value of goods purchased by paying VAT of 12.5% in the State has to be entered in box 8 (A). VAT paid thereon has to be entered in box 8 (B). If you have exempt sales and exempt transactions, you have to repeat the same exercise mentioned against box 07 above.

Box 09 – Net value of goods purchased by paying VAT of 1% in the State has to be entered in box 9 (A). VAT paid thereon has to be entered in box 9 (B). If you have exempt sales and exempt transactions, you have to repeat the same exercise mentioned against box 7.

Box 10 – Net value (excluding tax) of the Sixth Schedule goods purchased in the State by paying tax at special rate (Liquor, petrol, diesel, AMS and ATF) has to be entered in box 10 (A). You need not enter anything in box 10 (B), which is fully shaded, as no ITC is allowed on these goods.

Box 11 – This box shows the total amount of ITC available to you for the tax period, which is arrived at by adding the amounts in box 5 + 7(B) + 8(B) + 9(B).

Box 12 – You have to enter the value of (a) sale of goods exempt under Schedule I, (b) exempted turnover, (c) value of goods transferred to the other States falling under section 6-A of the CST Act, 1956, (d) inter State sales of exempt goods and (e) the entire turnover declared under composition. You should not enter the value of (a) sale of goods falling under Section 5(2) of the CST Act (high sea sales) and (b) inter-State sales falling under section 3(b) of CST Act (transit sales).

Box 13 – You have to enter the value of (a) export sales falling under Sections 5(1) and 5(3) (H form sales) of CST Act and (b) the sales made to a unit located in SEZ (Special Economic Zone).

Box 14 – You have to enter the value of only the taxable inter-State sales falling under section 3 (a) of CST Act.

Box 15 – Section 4(4) of the Act provides for levy of contingent purchase tax at the rate of 4% in certain circumstances. In box 15 (A), such purchase value has to be entered. The tax due on such purchases has to be entered in box 15 (B).

Box 16 – In box 16 (A), enter the net value of sale of goods taxable @ 4%. In box 16 (B) enter the VAT charged at 4%.

Box 17 – In box 17 (A), enter the net value of sale of goods taxable @ 12.5%. In box 17 (B), enter the VAT charged at 12.5%.

Box 18 – This box is to be used by the dealers in the Sixth Schedule goods (Liquor, petrol etc), which are taxable at the point of first sale in the State at special rates. This box is partially shaded. Both the first sellers and the second and subsequent sellers of these goods have to show the net value of these goods sold in box 18 (A). Only the first sellers of these goods have to show the tax due thereon in box 18 (B).

Box 19 – In box 19 (A), enter the net value of sale of goods taxable @ 1%. In box 19 (B), enter the VAT charged at 1%.

Box 20 – This box represents the total amount of output tax payable for the tax period. You have to arrive at this amount by adding the amounts in box 15 (B) + 16 (B) + 17 (B) + 18 (B) + 19 (B). The question of adding the amount in box 18 (B) arises only in the case of first sellers of Sixth Schedule goods.

Box 21 – This box shows the net output tax payable by you, after deducting the ITC in box 11. If the amount in box 20 is more than the amount in box 11, enter that differential amount in box 21. However if the amount in box 20 is less than the amount in box 11, simply enter ‘NIL’.

Box 22 – You have to furnish the payment details such as cheque number etc.

Box 22(a) – You have to make entries of the following details:—

1. If you are a works contractor, furnish details of TDS/TCS, along with the details of Form VAT 501/501A/501B. These forms are to be enclosed wherever required in original.

2. If you are availing Sales Tax deferment, with reference to the net output tax payable mentioned in box 21, you have to furnish availment details. You should also enclose Form VAT 502.

3. If you have paid entry tax under the Entry Tax Acts, 1996/2001, you have to furnish the details. You should also enclose Form VAT 503.

4. The assessing authority issues form VAT 308, in a case where you have over declared output tax due. In this form you are permitted to adjust the amount of credit mentioned therein in the next VAT return. On receipt of form VAT 308, you have to furnish these details and also enclose Form VAT 308.

If the amount in box 11 exceeds the amount in box 20 or the payments and adjustments in box 22 and box 22 (a) put together exceed the tax due in box 21, you can claim refund in box 23, if you have declared exports or in the absence of exports, you have to carry forward such excess amount by entering in box 24.

Box 23 – You have to enter in this box, only if you want to claim refund. In a case where if box 11 exceeds box 20 and where you have exports exceeding Rs.10 lakhs in the tax period in box 13 (A) and where you do not adjust such excess amount towards liability under CST Act, if any, enter the differential amount in this box and claim refund. If box 20 exceeds box 11, enter ‘NIL’ in box 23.

Box 24 – If the amount in box 11 exceeds the amount in box 20 or the payment and adjustment in boxes 22 and 22 (a) put together exceed the tax due in box 21 and if you have no entry in box 13(A) or less than Rs. 10 lakhs, enter the difference between boxes 11 and 20 or the difference between the sum of payment and adjustment and tax due. This is the amount you are claiming as credit to be carried forward to the next return. You have to enter ‘NIL’ in box 24, if box 20 exceeds box 11 or where you have made an entry in box 23.

Box 24(a) – If you want to adjust the credit carried forward in box 24 against the tax liability under the CST Act, enter the amount CST due, which you wish to adjust.

Box 24(b) – Deduct the amount shown in box 24 (a) from the amount shown in box 24 and enter in this box. This is the amount you are claiming as net credit to be carried forward to the next return.

Box 25 – This is the declaration you have to make. Only the authorised person (in the case of other than the sole proprietor) has to sign this return. In the case of a sole proprietor, only he has to sign.

Form VAT 200A

This return is to be filed under Rules 20(6), (7)(8)(b) and 9(b) of the Rules by a VAT dealer, if he is having sales of taxable goods/exempt goods i.e., goods mentioned in Schedule I or inter State stock transfers.

Rule 20(6) – This is applicable to a VAT dealer who is able to establish that specific inputs are meant for specific outputs. For common inputs used for taxable/exempt goods and exempt transactions, VAT dealer can claim ITC by applying the formula A x B/C.

Rule 20(7) – This is applicable to a VAT dealer, who makes taxable sales and sales of exempt goods. If the inputs are common for both, ITC can be claimed as per formula.

Rule 20(8)(b) – This is applicable to a VAT dealer, who makes sales of taxable goods and exempt transactions of taxable goods. The above formula has to be applied for calculating the eligible ITC for the tax period.

Rule 20(9)(b) – This is applicable to a VAT dealer making taxable sales, exempt sales (Schedule I goods) and exempt transactions of taxable goods. The above formula has to be applied for the calculation of ITC.

VAT 200A contains the relevant columns for the above purposes, which are self-explanatory. This has to be filed along with VAT 200.

Form VAT 200B

This return has to be filed under Rules 20(4)(b), (5)(c), (6) (7), 8(b) and (9)(b).

This is an annual return, which has to be filed along with the form VAT 200 return for the month of March every year. This should contain the details for the 12 month period for adjustment of ITC. It is a consolidation of the figures for the period from April to March every year.

Rule 20(4)(b) – This is applicable to a dealer, who buys and sells the goods in the same form and having common inputs like packing material used for sales of taxable and exempt goods (Schedule I). The VAT dealer shall repay input tax related to exempt element of common inputs by making adjustment in VAT 200 B return once in a year for the 12 month period, by applying the formula

A x B/C. This sub-rule is not applicable to a dealer, having exempt transactions (stock transfers to other States).

Rule 20(5)(c) – This is applicable to a VAT dealer making taxable sales of 95% or more for the tax period. He can initially claim full ITC. If the taxable sales are 5% or less of the total value, then he cannot claim ITC for that tax period. In Form VAT 200B, he can make a 12-month adjustment by applying the said formula. This sub-rule is not applicable to a dealer having exempt transactions.

The remaining 4 categories of dealers are explained under VAT 200A return. These dealers have also to submit VAT 200 B for making 12 month adjustment.

Form VAT 200C

This is the final return to be submitted by a VAT dealer on cancellation of VAT registration under Rule 23 (4). It shall be submitted within 15 days of the effective date of cancellation of registration. This is same as VAT 200.

Form VAT 200D

This is to be submitted under Rule 20(4)(a) of the Rules, every month by a VAT dealer having sales of exempt goods (Schedule I) or inter State stock transfers. This is applicable to a VAT dealer, who buys and sells the goods in the same form. Such dealer can fully claim ITC in respect of all the taxable goods purchased in the tax period, excluding the goods in the negative list. This is in addition to Form VAT 200.

Form VAT 200E

This is to be submitted by a VAT dealer every month under Rule 20 (12). This return is to be filed if tax is paid under Composition Scheme (Hotels and Works Contractors) or by a sub-contractor of a main contractor, who has done works to State Government or Local Authority and who is exempt under Rule 17 (2) (j) of the Rules. Such dealer shall calculate for each tax period the eligible ITC, by excluding the turnover or value relating to composition/exemption in this Form. This is in addition to Form VAT 200.

Form VAT 200F

This is the annual return to be filed for the 12-month period ending in every March by the two categories of dealers, who are required to submit VAT 200 E return for the adjustment of ITC.

Form VAT 213

This is the revised return for a tax period to be furnished within a period of six months from the end of the relevant tax period under Rule 23 (6) (a) of the Rules. If any VAT dealer having furnished a return in Form VAT 200 finds any omission or incorrect information therein, other than as a result of an inspection or receipt of any other information or evidence by the authority prescribed, he shall submit an application in Form VAT 213 within the said period.

Form VAT 225

Rule 23(8) – Every VAT dealer who claims ITC in respect of certain goods or any specific category of VAT dealers, as notified by the Commissioner or any other VAT dealer as required by the Deputy Commissioner concerned shall submit a return in Form VAT 225 in addition to the return in Form VAT 200, containing the details of purchases made from other VAT dealers in the State for each tax period or for any other period as may be notified by the Commissioner or as required by the Deputy Commissioner concerned. This is on par with the E return under the APGST Act.

Form VAT 226A

This is the return to be filed by VAT dealers for each quarter furnishing information relating to purchases made from other VAT dealers in AP. See Rule 23(10).

Form VAT 226B

This is the return to be filed by VAT dealers for each quarter furnishing the information relating to sales made to other VAT dealers in the State of AP. See Rule 23(10).

Form VAT 227A

This is the return to be filed by VAT dealers for each quarter furnishing the information relating to purchases made from TOT dealers in the State of AP. See Rule 23(10).

Form VAT 227B

This is the return to be filed by VAT dealers for each quarter furnishing the information relating to sales made to TOT dealers in A.P. See Rule 23(10).

Form VAT 228A

This is the return to be filed by VAT dealers for each quarter furnishing the information relating to sales made to unregistered dealers in A.P. See Rule 23(10).

Form 501

This is the certificate of tax deduction at source (TDS) to be furnished by the works contractors, along with the Form VAT 200. See Rules 17(2)(d) and (f).

Form 501A

This is the certificate of tax deduction at source (TDS) to be furnished by the works contractors, along with the Form VAT 200. See Rule 17(1)(f).

Form 501B

This is the certificate of tax deduction at source (TDS) transferred to the sub contractor to be furnished along with the return in Form VAT 200. See Rule 18 (1)(e).

Form 502

Under Rule 67(4) of the Rules, every dealer availing industrial incentives (tax deferment) has to furnish this declaration form every month, containing the details of availment of sales tax deferment. This is in addition to Form VAT 200.

Form 503

This is the declaration to be given by a VAT dealer under Rule 24 (6) of the Rules furnishing the details of tax adjustment/payment of entry tax etc. This is in addition to Form VAT 200.

Form VAT 360

This is the application claiming refund of the turnover tax paid on the declared goods, which are subsequently sold in inter-State trade under Rules 35(1)(c) and (e) of the Rules. (This is on par with the claim under Rule 27-A of the APGST Rules). This has to be filed within a period of 90 days from the date of payment of the tax due under the CST Act in respect of sale of declared goods.

Form VAT 250

This is the application for opting for payment of tax by way of composition to be submitted by the works contractors and hoteliers under Rules 17(2)(b), 17(3)(c), 17(4)(B) and 19(5). Works contractor has to apply for composition before commencement of the work. In the case of a hotelier he shall be liable to pay this tax from the first day of the month in which the application for composition is made.

Form VAT 250A