• What is Vat?

    Vat is a multi –stage tax levied only on value added at each stage in the chain of production of goods and service with the provision of set off for the tax paid stage .

  • Who is a dealer under U.P. vat?

    1. Manufacture
    2. Trader
    3. Work Contractor
    4. Exporter/Importer

  • What is Input tax?

    Input tax means the aggregate of the amount of tax paid or payable by a registered purchasing dealer to registering selling dealer .

  • What is input tax credit?

    Input tax credit is tax benefits on purchase from registered dealer in U.P.

  • What proof is required to claim Input Tax Credit?

    The Original Tax Invoice is the proof required to claim Input Tax Credit.

  • Will Input Tax Credit be available on Inter State Purchase?

    No, Input Tax Credit will not be available on Inter State Purchse.

  • How is Vat computed?

    VAT= Output tax – Input tax

  • Does Vat lead to cascading Effect of Tax?

    No, Vat does not lead to cascading effect of tax.

  • Who is to be covered by Vat?

    All business transactions carried on within a state by individuals, partnership firms, companies etc. will be covered by Vat.

  • What are the Tax Rates under Vat in U.P.?

    There are just 4 rates under vat:
    1. 0%
    2. 1%
    3. 4%
    4. 12.5%

  • What is Tax Return?

    Tax Return means any return of turnover and tax required to be furnished under the Act or the rules made thereunder.

  • What is the period of Tax Return?

    For first year, Dealer has to file monthly return and challan and thereafter after first year subject to turnover of dealer as if:
    1. Turnover is 5 lacs to 25 lacs: Quarterly Return and quarterly Challan
    2. Turnover is 25 lacs to 1 Crore: Quarterly Return and Monthly Challan
    3. Turnover is more than Crore: Monthly Return and Monthly Challan

  • What is Works Contract?

    Work Contract means contract where material is involved.

  • How can a Dealer obtain Registration?

    Every Dealer liable to pay tax shall apply to the Registering Authority within 30 days from the date on which such dealer become liable in the prescribed manner alongwith proof of deposit of registration fee.

  • Is there any Composition Scheme for small dealers?

    Yes, Dealers other than Manufactures and Importers whose turnover does not exceed 50 lacs and who purchases goods from registered dealer of the State may opt for Composition scheme.

  • When does the Vat Audit require?

    A Vat Audit is required if the turnover of Dealer exceeds Rs. 100 Lacs.

  • What is Tin?

    The registration no. allotted to the dealers is popularly known as TIN i.e. Taxpayer Identification Number.

  • For whom online return is mandatory?

    The registered dealer who have turnover of Rs. 50 Lacs and more will have to file their return through online.

  • What is taxable quantum of dealer to get registration.

    Rs. 500,000/- annually.