Page 243 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes VAT Analysis – Payable and Paid Amount on Full Payment of VAT Dues

For the above purchase and sales entries, record a payment entry for full payment of VAT dues
using the Auto-fill option. In the single entry mode of Payment voucher, select the bank ledger
in Accounts field and press S: Stat Payment button (Alt+S). Set the options as shown in Statutory
Details screen.

Self Assessment

Fill in the blanks:
6. .................................... is imposed on goods and services at import stage, manufacturing,
wholesale and retails levels.

7. A uniform VAT rate of ............................. percent is applicable for both goods and services.
8. VAT is applicable to all ............................. products and services with some exemptions.
9. VAT is payable at the time of supply of ............................. and services.
10. ............................. returns are to be submitted on monthly or quarterly or half yearly basis
as notified by the Government.
11. ............................. is imposed at local and import stage under the VAT Act, 1991.

14.4 VAT Rates

Broadly following VAT rates were being proposed:

 0% on natural and unprocessed produces in unorganized sector goods of social importance
like states, pencil education book etc.

 1% floor rate for gold, silver, precious and semi-precious store.
 4% for goods of basic necessities industrial and agricultural inputs like beedi leaves,
fibers, seeds, declared goods (Iron and steel, hide and skin, etc.) Medicine and drugs;
textiles and sugar, capital goods.
 12.5% RNR (Revenue Neutral Rate) on other goods.
 Aviation turbine fuel and petroleum products will be out of VAT regime. Liquor and
cigarettes will also be taxed at higher rate.

Did u know? India, particularly being a trading community, has always believed in accepting
and adopting loopholes in any system administered by State or Centre.

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