In exercise of the powers conferred under sub-section (1) of Section 78 of the Andhra Pradesh Value Added Act,2005, (Act.No.5 of 2005) the Governor of Andhra Pradesh hereby makes the following amendments to the Andhra Pradesh Value Added Tax Rules,2005, issued in G.O.Ms.No.394, Revenue (CT.II) Department, dated.31.03.2005 and published in the Rules Supplementary to Part-I Extra Ordinary issue of Andhra Pradesh Gazette No.29, Dated.20.04.2005.

In the said Rules,-

I. In rule 17,

(1) In sub-rule (3),-

(i) for clause (b) the following shall be substituted namely:

"(b) The VAT dealer mentioned in clause (a) above shall pay tax at the rate of four percent (4%) of the total consideration received or receivable."

(ii) In clause (d) the words "of fifty percent (50%)" shall be omitted,-

(iii) In clause (g) the words "The sub-contractor, if he is a VAT dealer, in such a case may either opt for composition under clause (c) of sub-section (7) of Section 4, or pay tax under clause (a) of sub-section (7) of Section 4." Shall be omitted,-

(2) In Sub-rule (4),-

(i) In clause (g) the words "The sub-contractor if he is a VAT dealer, in such a case may either opt for composition under clause (d) of sub-section (7) of Section 4, or pay tax under clause (a) of sub-section (7) of Section 4." shall be omitted,-

(ii) After clause (h) the following clause shall be added namely,-

"(i) The VAT dealer mentioned in clause (a) above shall pay an amount equivalent to one percent (1%) of the total consideration received or receivable or the market value fixed for the purpose of stamp duty, whichever is higher. This payment shall be made by way of a demand draft obtained in favour of the Commercial Tax Officer or Asst. Commissioner concerned and the instrument is to be presented at the time of registration of the property to the Sub-Registrar, who is registering the property, duly furnishing his TIN (Tax payer Index Number) and the full postal address of the CTO/Asst. Commissioner concerned on the reverse of the D.D. The Sub-Registrar, shall then send the same to the CTO/Asst. Commissioner concerned every week."

II. In rule 18,-

"In clause (a) of rule 18, for the words "two percent", the words "four percent" shall be substituted."

III. In rule 19,-

Sub-rule (5) shall be omitted.

IV. In rule 20,-

After sub-rule (3), the following shall be inserted namely,-

"(3-a) Where any VAT dealer pays tax at the rate of twelve and half percent (12.5%) on the sale consideration of a used or a second hand vehicle already registered in the State under the Motor Vehicles Act,1988, he shall be eligible for notional input tax credit at the rate of twelve and half percent (12.5%) on the purchase price actually paid supported by documentary evidence. Such notional input tax credit shall not exceed the output tax payable on the sale of used or second hand vehicle by the VAT dealer."

V. In rule 24,-

For sub-rule (1) the following shall be substituted namely,-

"(1) In the case of a VAT dealer, the tax declared as due on Form VAT- 200, shall be paid not later than fifteen days after the end of the tax period if the payment is by way of cheque and not later than twenty days after the end of the tax period if the payment is by way of demand draft or bankers cheque or by way of remittance into the Treasury."