OFFICE OF THE COMMISSIONER COMMERCIAL TAXES

JAMMU & KASHMIR GOVERNMENT,

EXCISE & TAXATION COMPLEX,

RAIL HEAD, JAMMU-180012

Clarification No. 08/2007-08, Dated: 28th May, 2007.

An application has been filed by M/s Shanshak Agencies, Rehari Colony, Jammu through Shri Rajinder Kumar Sharma, Advocate seeking clarification on the following issues:-

(i) What is the correct way of invoicing out of two examples cited in the application, in the light of definition of "Sale Price" and the applicability of VAT on reimbursement of scheme amount by the selling dealer?

(ii) Different software are being used by different dealers and distributors for maintaining VAT related records, whether the applicant can maintain the VAT related records, other than the prescribed format.

(iii) In case any dealer wants to change the software in between the financial year, whether it is mandatory to start the serial No. from the last invoice issued from the previous software or has to again start from the serial No. 01 onwards;

(iv) If the dealer is dealing with different divisions and products of different companies, whether the dealer can issue the invoices of same serial No. for different divisions and companies.

The counsel for the applicant caused his appearance and pleaded the matter.

The issue raised at serial No. (i) supra becomes crystal clear from the bare perusal of clause (xxix) of Section 2 of the J&K Value Added Tax Act, 2005 and the first example put across by the applicant in support of his contention is correct and is to be followed.

As regards issue at serial No. (ii), section 58 of J&K VAT Act, 2005 read with Rule 62 of the J&K VAT Rules, 2005 specifies and lays down the procedure and formats which a registered dealer is obliged under law to follow.

Regarding issue at serial No. (iii) raised by the applicant, it is clarified that if dealer changes software in between the financial year then as per rule 62(6) of the J&K VAT Rules, 2005 the dealer shall have to maintain the records of correction or changes of any entry where the registered accounts and documents are maintained by means of computer or any other similar mechanical devise.

Regarding 4th issue, it is clarified that the dealer can issue the invoice of same serial No. for different divisions and companies. As per rule 63(7) of the J&K VAT Rules 2005, every VAT dealer shall furnish to the jurisdictional Assessing Authority alongwith annual return and trading account, the list of VAT invoices books used during the year mentioning therein, the total number of VAT invoices issued out of each VAT invoice book so used.

Sd/-

(Bashir Ahmed)IAS

Commissioner Commercial Taxes