GOVERNMENT OF ANDHRA PRADESH COMMERCIAL TAXES DEPARTMENT

PROCEEDING OF THE AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present :

Sri T.Yugandhra Reddy, Additional Commissioner (VAT)

Sri T.Vivek, Joint Commissioner (VAT)

Sri K.Raghavaiah, Joint Commissioner (Audit)

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CCT's Ref.No.PMT/P&L/A.R.Com/372/2005.,Dated : 17-11-2005.

Ref: CCT'S Ref.No.PMT/P&L/A.R.COM/2005, Dt:13-4-2005.

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O R D E R:

M/s. Sri Sai Printers (GIR No.PJT/07/1/2940), Lakdi-ka-pool, Hyderabad have filed an application and sought clarification and Advance Ruling on the following items under Section 67 of the APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules,2005 along with the application fee of Rs.1000/-. The application is examined and found in order. Hence admitted.

The applicant is seeking a ruling on the following:

1) Whether being a TOT dealer, he can sell the old machinery to a dealer outside the State?

2) If so, what is the rate of tax to be collected and whether consequent on selling goods outside the State, it would affect the status of being a TOT dealer?

The case was posted for hearing on 22-10-2005. Sri A Narayana Swamy, Managing Partner of the firm appeared and explained the case.

According to him he is presently registered as a TOT dealer under the provisions of the Act and he would like to sell old machinery already used by him to a customer outside the State of A.P. He is seeking to know whether he can continue to be a TOT dealer and pay tax under the provisions of CST Act for the interstate transactions involved in selling machinery to a customer outside the State.

After examining the facts of the case and the provisions of Section 17 of the Act, it is hereby clarified that under sub-section (5)(a) of Section 17 of the Act, every dealer making sales in the course of interstate trade shall be liable to be registered as a VAT dealer irrespective of the turnover. Under Rule 5, the time limit for applying VAT Registration in such instances is also prescribed. As regards the liability of tax on interstate sales of old machinery, the provisions of CST Act,1956 shall apply depending upon whether the sale is made to a registered dealer and the transaction is supported by a declaration form.

Note: An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P., Hyderabad within 30 days of this ruling.