In exercise of the powers conferred by Section 78 of Andhra Pradesh Value Added Tax Act, 2005 the Governor of Andhra Pradesh hereby makes the following amendment to the Andhra Pradesh Value Added Tax Rules,2005, issued in G.O.Ms.No.394, Revenue(CT.II) Department, dated.31st March, 2005 and as amended from time to time:-

This notification shall be deemed to have come into force with effect on and from 1st April, 2005

AMENDMENT

In the said rules, after clause(k) of sub-rule(2) of rule 20, the following shall be addedm namely:- "(1) any goods (except kerosene) purchases or procured for supply through Public Distribution System(PDS)-

As a result of this restriction on in put tax credit for the goods(except kerosene) purchased for the purpose of Public Distribution System(PDS), the corresponding sales will not be liable to any tax. Accordingly the Food Corporation of India or Andhra Pradesh State Civil Supplies Corporation Limited will be liable to pay tax only, if their sales are first sales. They will not be liable to pay and tax on the sales of goods(Except kerosene) purchasesd from local Value Added Tax Dealers and they will also be not eligible to claim any input tax credit for such purchases. Fair Price Shops are acting as agents on behalf of the State Government i.e., a resident principal. As such fair price shops do not have any liability to register under Andhra Pradesh Value Added Tax Act, 2005 and to pay any tax. However, if the fair price shops are deling in any other goods not supplied through Public Distribution System, they will be liable to gegister under Andhra Pradesh Value Added Tax Act, 2005 depending on their turn over of such goods and will have to pay tax accordingly."