In exercise of the powers conferred by Section 85 of the Jammu and Kashmir Value Added Tax Act, 2005, the Government hereby direct that in the J&K Value Added Tax Rules, 2005, after Rule 39-A, the following rule shall be added; namely:-

"Rule 39-B

(i) the Jurisdictional Assessing Authority having jurisdiction over the SICOP shall issue form VAT-15-C duly sealed and signed to SICOP who in turn shall furnish it to the registered dealer, from whom SICOP shall purchase the raw material in turn to be sold to Industrial Units registered with the Department of Industries & Commerce / Directorate of Handicrafts/Handlooms/ and also with the Department of Commercial Taxes.

ii) The registered dealer from whom SICOP purchases raw material against form VAT 15-C, shall submit copy of Form VAT 15-C alongwith his quarterly returns in lieu of tax due on such transactions.

(iii) The SICOP shall in the first instance deposit an amount in advance in major head 0040-Sales Tax. The SICOP shall issue form VAT 15-C for each transaction and the amount of tax mentioned therein shall be debited against the advance tax by the jurisdictional Assessing Authority when such form is submitted by the registered dealer alongwith returns due. The form VAT 15-C so submitted shall be deemed as cash payment.

(iv) The jurisdictional Assessing Authority on receipt of VAT 15-C shall inform Additional Commissioner Commercial Taxes (Adm.) of the concerned division, who shall maintain proper account of such payments and shall immediately, inform SICOP as and when advance tax exhausts.

(v) The Commissioner Commercial Taxes shall assign amount to each division after advance tax is deposited by SICOP to maintain proper account in each division.

(vi) To maintain the VAT -chain, Commissioner Commercial Taxes, J&K shall notify the procedure in accordance with the notification to be issued by the Industries & Commerce Department.

By Order of the Government of Jammu and Kashmir.

Sd/-

(B. B. Vyas) IAS,

Principal Secretary to Government

Finance Department

(Required for adjustment of VAT payable by SICOP on account of purchase of raw material from the dealer).

1. Name and full address of the dealer:-

2. TIN of the dealer

It is certified that the raw material purchased by SICOP from M/s .............................. having TIN .................. as per below mentioned invoice(s) are meant for onward sale to M/s ............................... registered Micro

and Small Industrial (SII) Unit(s) of the J&K State bearing TIN ........................... and duly covered in certificate of registration (s) as raw material for manufacture of their finished products.

The tax amounting to Rs. ........................... (in words) ............................... is debited against the advance tax of Rs.............................. (in words) (.....................................) credited by the Industries and Commerce department in major head 0040 sales tax as no tax has been paid in cash to the dealer by the SICOP.

Further it is certified that the raw material purchased for the aforementioned industrial unit shall be sold to M/s ................................... (industrial unit) during the quarter of the purchase.

The certificate is being issued in lieu of the tax amount due to the dealer and shall be furnished alongwith quarterly return due for the tax period.

For & On behalf of Managing Director SICOP

i. To be furnished to the Commercial Taxes Department

ii. To be retained by the SICOP

iii. To be retained by the selling dealer

iv. To be retained by the industrial unit(s)