OFFICE OF THE COMMISSIONER COMMERCIAL TAXES

GOVERNMENT OF JAMMU & KASHMIR,

JAMMU

Clarification No: 42 of 2008 Dated: 1st December, 2008

Shri V K Grover, Advocate has sought clarification under Section 87 of the J & K VAT Act, 2005 read with rule 93 of J&K VAT Rules, 2005 along with the application fee of Rs 100/ . The application is examined and found in order, hence, admitted.

The applicant has sought clarification, the relevant portion of which is reproduced as under:

"As per Section 69(1)(k) if any person- fails to issue a tax invoice or a retail invoice as the case may be, simultaneous with making a transaction of sale or issues a false tax invoice or retail invoice or receives or issues a tax invoice, knowing it to be false;

Since the term PERSON has been defined under Section 2(XX1) of the Jammu & Kashmir Value Added Tax Act, 2005 and the intention of the 1egis1ature apparently seems to include all--- from "individual" to… "a local authority including governments/corporations etc."

In context of this the pertinent issues which need to be addressed by your good self are:

1. "Whether a PERSON includes an unregistered dealer also who is not even liable to be registered under VAT due to immunity granted by the legislature on account of his turnover being less than minimum prescribed limit not subjected to tax or otherwise?

2. Whether retail invoice issued by any dealer mentioning the Amount of invoice/Bill "Inclusive of VAT" and hence not in accordance with VAT-51 as prescribed by the Rules shall render the Invoice as 'FALSE' as contemplated under section 69(k) and liable for penalty under section 69(k) (xi)?"

The case was posted for hearing on 10-03-2008. Shri V K Grover caused his appearance and the case was discussed.

With regard to the reference pertaining to item No: 1 above, as the term "person" and "Dealer" are clearly defined in section 2 of the J&K VAT Act, 2005 and, there is no scope for further clarification.

As regards the issue raised at 2 above, Tax invoice is to be issued in Form VAT -50 or 51 as the case may be, as stipulated under section 59 of the J&K VAT Act, 2005 read with rule 63 of the J&K VAT Rules, 2005. A dealer not conforming to the stipulations of Rule 63 shall become liable to penal action as laid down in the Act.

(Bashir Ahmed) IAS

Commissioner Commercial Taxes