Saawariya & Co.

R.8 Determination of taxable turnover of sale U.P. VAT RULES

R.8 Determination of taxable turnover of sale

For the purpose of determining taxable turnover of sale, amounts specified below shall be deducted from the turnover of sale, determined in accordance with Rule 7, if they are included in such turnover of sale:

(i) all amounts allowed as discount provided that such discount is allowed in accordance with the regular commercial practices of the dealer

(ii) Subject to provisions of the Act, all amounts allowed to purchasers in respect of goods returned by them to the dealer within six months from the date of sale of such goods:

Provided that –

(a)the selling dealer issues credit note to the purchasing dealer and a obtains a debit note from purchasing dealer;

(b)the accounts show the dates on which the goods were sold and returned and also the date on which amount for which refund was made or credit was allowed;

(iii) all amounts realized from the sale by the dealer of his business as a whole;

(iv) in respect of non-vat goods, all amounts for which the dealer sells such goods after their purchase from inside the State;

(v) all amounts representing turnover of sale of goods exempt under the Act;

(vi) all amounts representing turnover of sales of goods where such sales are exempt from levy of tax in view of provisions of clause (c) of section 7;

(vii) all amounts representing the sale value of goods in respect of which the dealer has opted the scheme of payment of lump sum in lieu of actual amount of tax on turnover of sale of goods under section 6;

(viii) amount of tax payable on sale of goods by the dealer where such amount has been realized from the purchaser separately on a tax-invoice issued by the dealer;

(ix) except a dealer to whom section 6 applies, in case of any other dealer, where tax is payable in respect of a sale and the dealer has not realized amount of tax from the purchaser separately, amount of tax computed using the formula:

Amount of tax = (Turnover x Rate of tax) ÷ (100+rate of tax)

Provided that turnover in cases of transfer of property in goods involved in the execution of a works contract and taxable turnover of sale of such goods; and turnover of sale and taxable turnover of sale in cases of transfer of right to use any goods, shall be determined in the manner provided in Rule 9 and Rule 10 of these Rules respectively.

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