PART II

TURNOVER, REGISTRATION AND PAYMENT OF SECURITY

Determination of total and taxable turnover

      Rule 3.(1) The total turnover of a dealer, for the purposes of the Act, shall be the aggregate of .-

           (a) the total amount paid or payable by the dealer as the consideration for the purchase of any of the goods in respect of which tax is leviable under sub-section (2) of Section 3;

              (b) the total amount paid or payable to the dealer as the consideration for the sale, supply or distribution of any goods where such sale, supply or distribution has taken place inside the State, whether by the dealer himself or through his agent;

            (c) the total amount paid or payable to the dealer as the consideration for transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract including any amount paid as advance to the dealer as a part of such consideration;

            (d) the total amount paid or payable to the dealer as the consideration for transfer of the right to use any goods for any purpose (whether or not for specified period);

            (e) the total amount payable to the dealer as the consideration in respect of goods delivered on hire purchase or any system of payment by instalments;

            (f) the aggregate of the sale prices received and receivable by the dealer in respect of sale of any goods in the course of inter-state trade or commerce and export out of the territory of India and sale in the course of import into the territory of India; and

            (g) the value of all goods transferred or despatched outside the State otherwise than by way of sale.

(2) The taxable turnover shall be determined by allowing the following deductions from the total turnover.-

            (a) The aggregate of the sale prices received and receivable by the dealer in respect of sales of any goods in the course of inter-state trade or commerce and export out of the territory of India and sales in the course of import into the territory of India.

(b) The value of all goods transferred or despatched outside the State otherwise than by way of sale.

(c) All amounts allowed as discount:

        Provided that such discount is allowed in accordance with the regular practice of the dealer or is in accordance with the terms of any contract or agreement entered into in a particular case; and

       Provided further that the accounts show that the purchaser has paid only the sum originally charged less discount.

(d) All amounts allowed to purchasers in respect of goods returned by them to the dealer: 

         Provided that the goods are returned within a period of six months from the date of delivery of the goods and the accounts show the date on which the goods were returned, the date on which the refund was made and the amount of such refund together with the details of credit notes issued as specified under subsection (1) of the section 30.

(e) All amounts received from the seller in respect of goods returned to them by the dealer, when the goods are taxable under sub-section (2) of section 3:   

          Provided that the goods are returned within period of six months from the date of delivery of the goods and the accounts show the date on which the goods were returned and the date on which the refund was made and the amount of such refund.

(f)  All amounts for which goods exempt under section 5 are sold.

(g) All amounts realized by sale by a dealer of his business as a whole.

(h) All amounts collected by way of tax under the Act;

(i) The turnover in respect of which the dealer’s agent has paid tax, and the dealer has furnished a certificate in Form VAT 140.

(j) All amounts separately collected in tax invoices as commission under the provisions of the Agricultural Produce Marketing (Regulations) Act, 1966, by a commission agent:

        Provided that the tax is not separately charged for and collected in the tax invoices on such commission.

(k) All amounts received or receivable by way of interest on the unpaid amount payable in respect of goods delivered on hire purchase or on any system of payment by instalments, where such interest is specified and charged for by the dealer separately without including such amounts in the price of the goods delivered and does not exceed twenty percent per annum on the amount remaining unpaid.

(l) All amounts actually expended towards labour charges and other like charges not involving any transfer of property in goods in connection with the execution of works contract including charges incurred for erection, installation, fixing, fitting out or commissioning of the goods used in the execution of a works contract.

(m) Such amounts calculated at the rate specified in column (3) of the Table below towards labour charges and other like charges as incurred in the execution of a works contract when such charges are not ascertainable from the books of accounts maintained by a dealer.

TABLE

Explanation – I: Where the turnover of a dealer claiming deduction under clause (l) in any tax period is not sufficient to cover the deduction, it shall be allowed to the extent of the turnover of the dealer in that period, and the balance shall be carried forward to the following tax period or any subsequent tax period.

Explanation – II: For the purpose of clause (l), “labour and other like charges” include charges for obtaining, on hire or otherwise, machinery and tools used in the execution of a works contract, charges for planning, designing and architects' fees, cost of consumables used in the execution of the works contract, cost of establishment to the extent relatable to supply of labour and services and other similar expenses relatable to supply of labour and services.

Explanation - III: For the purpose of clause (l), gross profit earned by a dealer shall be apportionable to the value of the goods and labour and other like charges involved in the execution of a works contract in the same ratio as in the total turnover.

      (4) (a)  Notwithstanding  anything in clause (b) of sub-rule (1) and sub-rule (2), the total turnover in respect of dealer liable to pay tax on  sale on manufactured tobacco under sub-section (5) of Section 4, where the sale has taken the place inside the state, shall be the aggregate of maximum retail price of the goods sold and taxable turnover in respect of such sales shall be determined by allowing deduction specified in Clauses (d), (h) and (i) of sub-rule (2)  from the total turnover.

b) The tax invoice issued by such dealer shall contain the details of maximum retails price of the goods in addition to details specified in rule 29.”