In exercise of the powers conferred by sub-section (1) of Section 78 of the Andhra Pradesh Value Added Tax 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 Supplement to Part-I Extra Ordinary issue of Andhra Pradesh Gazette No.29, dated.20-04-2005 and as subsequently amended from time to time.

The amendments to rule 20 and rule 67 made hereunder shall be deemed to have come into force with effect on and from the 1^st April,2005; the other amendments made shall be deemed to have come into force with effect on and from the 1^st December,2005.

AMENDMENTS

In the said Rules,-

I. In Rule 16, in sub Rule (3) after clause (e), the following clause shall be added namely,-

"(f) where ever any credit notes are to be issued for discounts or sales incentives by any VAT dealer to another VAT dealer after issuing tax invoice, the selling VAT dealer shall pass a credit note without disturbing the tax component on the price in the original tax invoice, so as to retain the quantum of input tax credit already claimed by the buying VAT dealer as well as not to disturb the tax already paid by the selling VAT dealer.

For example: if 100 TVs are sold @Rs.10,000/- each, amounting to Rs.10,00,000/-, the original tax charged @ 12.5% is Rs.1,25,000/-. If the discount of 10% is offered subsequently based on fresh purchases, the selling dealer can pass on the benefit of Rs.1,00,000/- for the price with out disturbing the tax component of Rs.1,25,000/-. The buying dealer will not alter the input tax credit already claimed amounting to Rs.1.25,000/-. The selling VAT dealer will not claim reduction in output tax liability consequent to lowered price offered."

II. In Rule 20,-

1) in sub rule (2), the Clause (h), the following shall be substituted namely,-

"(h) Natural gas, naptha and coal unless the dealer is in the business of dealing in these goods."

2) after clause (m), the following clauses shall be added namely,-

"(n) refrigerators, coolers and deep freezers purchased by Soft Drink Manufacturers not for use in their manufacturing premises.

(o) any goods purchased and used as inputs in job work

(p) PDS Kerosene purchased by wholesale dealers for the purpose of supplying to Fair Price Shops.";

III. In Rule 24, in sub rule (1), after the words "by way of remittance into the Treasury", the words "or by electronic funds transfer (EFT)" shall be added.;

IV. In rule 37,-

(1) in sub-rule (2), the following shall be inserted at the end, namely,-

"Whenever a VAT dealer is liable to restrict his sales tax credit as per the conditions in Rule 20, he shall submit Form VAT 200-G along with the return. Wherever annual adjustment of sales tax credit is to be made, such VAT dealer shall submit Form VAT 200-H along with the return for March,2006."

(2) in sub-rule (3) for the words "These shall be claimed monthly commencing on the return for August,2005 and ending on the return for January,2006" the following words shall be substituted, namely,-

"These instalments shall be claimed in the returns for the period from August,2005 to March,2006."

V. In Rule 55

(1) For sub-rule (7), the following shall be substituted, namely,-

"(7) The transporter or owner or other person incharge of goods vehicle or a vessel as the case may be shall maintain a register of record in Form 520-A containing full details of the consignor or consignee with full address, TIN Registration Number, CST Registration Number, Invoice Number / Delivery Challan Number / quantity and value of the goods and other details of goods transported in the goods vehicle or a vessel.

The transporter or owner or other person in charge of the goods vehicle or a vessel as the case may be shall submit an extract of the entries made in such register of records, extract of entries entered in the log book or goods vehicle records or trip sheet as the case may be for each month to reach the Commercial Tax Officer having jurisdiction over the area in which the goods are delivered before the 10^th day of the succeeding month. The register of record maintained shall be made available to any Officer of the Commercial Taxes Department not below the rank of Deputy Commercial Tax Officer in case of any enquiry, whenever called for. The word 'transporter' shall include any agency transporting goods by Road, Rail, Air, Water or combination thereof."

(2) after Sub Rule (7), the following shall be added, namely,-

(8) The owner or other person incharge of goods vehicle or a vessel or a bus carrying passengers and goods, as the case may be and where such goods are transported for more than one consignee in the state or other states and where such transport of goods are not covered by sub rule (1) to sub rule (6) of this rule, shall submit details of the goods being carried in Form-650 at the first entry into the state at the Check post. Such Form shall be submitted in duplicate to the officer incharge of the Check post and after getting it verified and attested by the officer incharge of the Check post the original should be retained at the Check post and the duplicate shall be issued to the person submitting such Form-650 and he shall carry duplicate form along with goods vehicle.

(9) The owner or other person incharge of goods vehicle or a vessel or a bus carrying passengers and goods, as the case may be and where such goods are transported for more than one consignee in other states and where such transport of goods are not covered by sub rule (1) to sub-rule (6) of this rule, shall submit details of the goods being carried in Form 651 at the Exit Check post in the State. Such Form shall be submitted in duplicate to the officer incharge of the Check post and after getting it verified and attested by the officer incharge of the Check post, the original should be retained at the Check post and the duplicate shall be issued to the person submitting such Form-651 and he shall carry duplicate Form along with goods vehicle.

(10) The owner or other person incharge of goods vehicle or a vessel or a bus, as the case may be had transported goods covered by sub rule 55(8) and rule 55(9), in a month, in addition to complying with the provisions of sub rule (7) of this rule, shall submit the duplicate copies of Forms-650 and 651 for each month by 10^th of the following month to the Deputy Commissioner having jurisdiction over the area where the registered office of such vehicles, buses and vessels carrying goods are located. The copies of duplicate Form-650 and 651 should also be submitted by their branches and parcel offices if such branches are independently operating and such copies of Forms should be submitted to the Deputy Commissioner in whose jurisdiction such branch offices are located or where goods are delivered by such transport vehicles or buses or vessels."

VI. In Rule 56 after sub-rule (2), the following shall be added namely,-

"(3) Where the owner or other person incharge of goods vehicle or a vessel or a transport bus carrying passengers and goods has not complied with the provisions made in rule 55 (8), 55 (9) and 55 (10) or carrying goods other than those mentioned in such Forms, on verification of such vehicle or bus or vessel, the officer incharge of the check post shall detain the vehicle along with the goods for further verification. The procedures and powers laid down in sub rule (1) and sub-rule (2) of this rule shall be followed by the officer incharge of the check posts to dispose of such detained goods and vehicles."

VII. In Rule 57, after sub-rule (2), the following shall be added namely,-

"(3) Further on such inspection by such officer it is found that any goods vehicle or a vessel or a bus carrying passengers and goods is not accompanying with the copies of Form-650 or Form-651 as the case may be or such vehicles are carrying the goods other than those mentioned in those forms, such officer may take action as provided for in Rule-56."

VIII. In rule 65, after sub-rule (7), the following shall be added namely,-

"(8) the Commissioner of Commercial Taxes may authorize any officer not below the rank of Joint Commissioner to exercise the powers conferred in this rule."

IX. In Rule 67, in sub-rule (3), the following words shall be omitted, namely,-

"Wherever the input tax exceeds out put tax for a tax period and the deferment unit made any export sales or sales in the course of exports in the same tax period, the unit shall carry forward such excess input tax up to the month of March every year and shall be eligible to claim refund in the tax return for the month of March every year."

FORM 520A

Register of Records to be maintained by the Transporter / Owner or the person incharge of the goods vehicle/vessel/boat

[(See Rule 55 (7)]

1. Name and address of the person consigning the goods

2. Full address of place (a) From which consigned (b) to which consigned.

3. The name and address of the dealer/person to whom the goods are consigned.

4. Description, quantity and value of goods

5. Name and address of the owner of the goods vehicle or boat / Vessel by which the goods are consigned.