| Rule 6 | ||||||||||||||||||||||||||||||||||||||||||||
| (1)The tax or **[ taxes and surcharge under 2[
Sections 5, 5A, 5B, 5C, 5E, 6, 6A and 6C] or notified under Section
9(1) shall be levied on the net turnover of a dealer. In determining the
net turnover, the amounts specified in Clauses (a) to (1) shall,
subject to the conditions specified therein, be deducted from the
turnover of a dealer - *sub-rule (2) was omitted and sub-rule (1) renumbered as rule 6 by G.O.Ms.No.572 Rev.dt.10.5.1966 Again Rule 6 was renumbered as sub-rule (1) of that rule by G.O.Ms.No.1445 Rev.Dt.5.11.1986. **Subs; by G.O.Ms.No.1445 Rev.Dt.5.11.1986. 1. Subs. for the expression "Sections 5,5-A,5-B,5-C,5-E,6,6-A,6-B, 6-C" BY G.O.Ms.No.244 Rev.dt.17.5.1995 w.e.f.1.4.1995. Again subs. for the expression "Section 5,5-B,5-C,5-E,6,6-A and 6-C" by G.O.Ms.No.143 Rev.dt.22.2.1999 w.e.f.22.2.1999. (a) 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 a contract or agreement entered into in a particular case and provided also that the accounts show that the purchaser has paid only the sum originally charged less the discount. [(b)(i) all amounts allowed to purchasers in respect of goods returned by them to the dealer when the goods are taxable on sales provided that the goods were 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 and the date on which an the amount for which refund was made; (ii) all amounts received from the sellers in respect of goods returned to them by the dealer, when the goods are taxable on the purchase value provided that the goods were 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 and the date on which and the amount for which refund was received; Provided that the claim for deduction on account of such returned goods shall be admissible if it is preferred within a period of six months from the date on which the goods sold have been received or the goods purchased have been returned as the case may be] Clause (b) was subs. by G.O.Ms.No.1571 Rev.dt.15.11.1983. Also see Rule 50(4). (c) all amounts for which the dealer sells articles which are not in his stock but which are obtained by him from another dealer specially to accommodate a particular customer and are immediately sold to such customer provided that the sale is entered in the accounts then and there as an accommodation sale together with the name of the dealer from whom the articles were obtained and provided that the accommodating dealer does not make a profit out of the transaction; (d) all amounts for which goods specified in (the forth schedule) are sold; Subs. by G.O.Ms.No.1857 Rev.dt.28.10.1963. (e) all amounts for which goods exempted by a notification under Section9(1) are sold or purchased, as the case may be, provided that the terms and conditions, if any, for the exemption in the notification are complied with; [(f)(i) all amounts for which the goods are sold in the course of inter-State trade or commerce or in the course of export out of the territory of India when the goods are taxable on sales; (ii) all amounts for which the goods are purchased in the course on inter-State trade or commerce or in the course of import into the territory of India when the goods are taxable on the purchase value.] Note: Clause (f) was ins., by G.O.Ms.No.1445 Rev.d.5.11.1986published in A.P.Gazette Extra ord. Part-I dt.25.11.1986. (g) Omitted originally by G.O.Ms.No.473 Rev.d.30.4.1986(Pub. in A.P.G.E.O. Part I dt.30.4.1986) and again by G.O.Ms.No.1445 Rev.d.5.11.1986.The omitted caluse read as under: "(g) all amounts relating to charges for services rendered in connection with the packing of goods when specified and charged for by the dealer seperately, without including them in the price of the goods sold:)] [(h) amount realised by a dealer by the sale of the good-will of his business when specified by the dealer separately, without including it in the amount realised by the sale of the business as a whole;] Subs. by G.O.Ms.No.1857 Rev.dt.3.8.1961. (i) all amounts for which the goods specified in the 8[ First, Second and Third schedules] are sold or purchased by a dealer when such sales or purchases are exempt from the tax liable under any of the provisions of the Act. Subs. by G.O.Ms.No.1857 Rev.dt.28.10.1963. (j) The turnover of liquor mentioned in sixth schedule on which tax has been levied under sixth schedule except at the point of first sale or last sale by the dealer. (k) all amounts charged separately as interest 2[or as finance charges] in the case of transaction of hire purchase or any system of payment by installments;] Note: Clauses (j) and (k) were added by G.O.Ms.No.1445 Rev.d.5.11.1986 published in A.P.Gazette Extra ord. Part-I dt.25.11.1996. Clause (j) was subs. by G.O.Ms.No.244 Rev.dt.17.5.1995 w.e.f.1.4.1995 w.e.f.1.4.1995. The earlier clause read as under: "(j) all amounts on which tax has been levied under the Sixth Shedule except at the piont of first sale or last sale by the dealer." 2. The bracketed words were inserted by G.O.Ms.No.621 Rev.dt.19.8.1998. (l) In determining the net turnover of a dealer the following deduction shall be made from the aggregate of the sale prices including sales tax, namely : |
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| The amount arrived at by applying the following formula : | ||||||||||||||||||||||||||||||||||||||||||||
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| Provided that no deduction on the basis of the above
formula shall be made if the amount by way of tax collected by a
registered dealer, in accordance with the provisions of this Act, has
been otherwise deducted from the aggregate of sale prices. Explanation : Where the turnover of a dealer is taxable at different rates, the aforesaid formula shall be applied separately in respect of each part of the turnover liable to different rate of tax.] Note: Clause (l) was ins. by G.O.Ms.No.244 Rev. dt.17.5.1995 w.e.f.1.4.1995 (m) **Omitted by G.O.Ms.No.572 dt. 10.5.1966. [(2) "Not withstanding anything contained in sub-rule (1), the tax under Section 5F, shall be levied on the turnovers of dealer who transfers property in goods, whether as same goods or in some other form, involved in the execution of works contract. In determining the turnover of a dealer liable to tax, the amounts specified in clauses (a) to (l) shall subject to the conditions specified therein, be deducted from the total turnover of the dealer. (a) Labour charges for execution of the works; (b) Amount paid to a sub-contractor for the execution of works contract Provided such a sub-contractor is a registered dealer and the turnover is included in the return filed by him before the assessing authority concerned; (c) Charges for planning, designing and architect`s fees; (d) Charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract; (e) Cost of consumables such as water, electricity, fuel, etc., used in the execution of the works contract, the property in which is not transferred in the course of execution of a works contract; (f) Cost of establishment of the contractor to the extent it is relatable to supply of labour and services; (g) Other similar expenses relatable to supply of labour and services; (h) Profit earned by the contractor to the extent it is relatable to supply of labour and services; (i) All amounts for which goods exempted by the notification under Section 9(1) are transferred in execution of works contract provided the goods are transferred in the same for as they were purchased; (j) All amounts for which the goods specified in the Third Schedule are transferred by a dealer when such sales are exempt from the tax liable, under any of the provisions of the Act, provided that the goods are transferred by the dealer as the same goods as they were purchased; (k) All amounts for which the goods specified in the Fourth Schedule are transferred by the dealer in execution of the works contract provided that the goods are transferred as the same goods as they were purchased; (l) Turnovers of goods involved in the execution of works contract which are transferred in the course of inter-State trade or commerce under Section 3 or transferred outside the State under Section 4 or transferred in the course of import or export under Section 5 of the Central Sales Tax Act, 1956. Note: The A.P. High Court in the case of Gannon Dunkerely & Co. and Others Vs.State of Andhra Pradesh (1996) 23 APSTJ195 held that Rule 6(2) as amended is valid after omitting the words " and that turnover is included in the return filed by him before the assessing authority concerned" in sub-rule (b) and the words" provided that the goods are transferred in the same form as they were purchased" in sub-rule (i),(j) and (k) thereof. (3)(i) In cases where the execution of a works contract extends over a period of more than one year, the total turnover for the purpose of sub-rule (2) for that year shall be deemed to be the value of goods purchased for being supplied or used in the execution of such contract in that year; (ii) In the cases where the value of goods involved in the execution of a works contract or the amounts referred at clause (a) to (i) of sub-rule (2) in such contract are not ascertainable from the accounts of a dealer or where under Section 5H contractee is required to deduct tax at source, the turnover of the dealer for the purpose of Sections 5F or 5H, shall be determined after deducting the amount calculated at the following percentages for different types of contracts from the amounts paid or payable to the dealer for carrying out such contract : |
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| (2[(4)] Omitted by G.O.Ms.No.788 Rev. dt.21.9.1996. Note: The A.P.High Court in the case of Gannon Dunkerly & Co. and Others Vs. State of Andhra Pradesh(1996) 23 APSTJ 195held that rule 6(3) (i) shall be read as applicable only to the value of goods supplied or used in works contract during the year and the rule 6(3)(ii) prescribing per centage of deduction for different kinds of contracts for estimating value of goods supplied where it cannot be ascertained is valid. Note: After the introduction of Section 5F sub-rule was subs. and sub-rules (3) &(4) were added by G.O.Ms.No.244 Rev.dt.17.5.1995 w.e.f.1.4.1995. Sub-rule (4) was however deleted by G.O.Ms.No.788 Rev. dt.21.9.1996. The earlier sub-rule (2) read as under: [(2) (i) For the purpose of sub-rule(1) the total turnover of a dealer shall, in relation to a works contract, be the amount realised or realisable by the dealer for carrying out such contract less the cost of labour incurred by the dealer in the execution of such contract. (ii) In case, the cost of labour is not ascertainable from the accounts of the dealers the value of goods involved in the execution of a works contract shall be the value of such goods estimated with reference to the prevailing market prices. (iii) In case, the execution of a works contract extends over a period of more than one year, the total turnover for the purpose of this rule for the year shall be deemed to be the value of goods purchased for being supplied or used in the execution of such contract in the year. (iv) In case, either the value of goods involved in the execution of a works contract or t he lost of labour in such contract is not ascertainable from the accounts of a dealer, the total turnover of the dealer,shall be deemed to be the amount payable to the dealer for carrying out such contract less a sum not exceeding such percentage of it as may be fixed by the Commissioner of Commercial Taxes from time to time for different types of contracts for different areas, representing the usual proportion in such areas of the cost of labour to the value of materials used in executing such contract, subject to the following maximum percentages: |
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(2) Sub-rule (4) was omitted by G.O.Ms.No. 788, Rev. dt.21.9.1966. The earlier rule read
as under: 1[Rule 6-A
Declaration by jaggery dealers:(1) The declaration referred to in provision (C) to the Fifth Schedule shall be in Form 1. (2) Such declaration Forms shall be printed under the authority of the 2(Commissioner of Commercial Taxes); 1. Added by G.O.Ms. No.83 Rev.dt.17.1.1976. 2. Subs. by G.O.Ms.No.1766 Rev. dt. 18.10.1978. Provided that when declaration Forms printed under the authority of the '(Commissioner of Commercial Taxes) are not readily available for use for any reason, the declaration Forms duly stamped with the Official seal of the assessing authority concerned may be used in lieu of such printed declaration Forms. (3) The printed declaration Forms may be obtained from the assessing authority concerned on payment of the cost quoted thereon. (4) Every dealer, who claims exemption from payment of tax on the sale of jaggery effected by him by virtue of proviso (c) to the Fifth Schedule, shall obtain a declaration in duplicate duly filled in and signed by the registered dealer who sold such goods containing particulars as in Form-1. The dealer claiming exemption shall file the original of such declaration before the assessing authority concerned along with the return prescribed under rule 15 or rule 17.Andhra Pradesh General Sales Tax Rules, 1957 Provided that the assessing authority may, on application of the assessee and if he is satisfied that the assessee was prevented by sufficient cause from furnishing such declaration within time, allow such declaration to be furnished within such further time as it thinks fit before the completion of the final assessment.(5) Every dealer in jaggery shall keep and maintain a register in Form 'J' showing a true and correct account of the declaration forms obtained for issue by him and shall produce the register and the used and unused declaration Forms before any officer authorised under the Act for the purpose of assessment, appeal or revision or on demand at any time by any officer authorised to inspect the place of business or for the purpose of an investigation incidental or ancillary to the verification. (6) Every dealer who receives such Form under sub-rule (4) shall maintain a register in Form 'K' in respect of the Forms received from the registered dealers. (7) If any Form of declaration is lost, destroyed or stolen, he shall report the same to the authority from whom he obtained the Forms and shall make appropriate entries in the remarks column of the register referred to in sub-rule(5). (8) If a declaration Form either blank or duly completed is lost while in the custody of the dealer or while in transit and has not reached the purchasing dealer, he shall furnish security equivalent to the tax due by way of an indemnity bond for each declaration Form so lost to the authority from whom the Forms were obtained. (9) If a declaration duly filled and signed is lost while in the custody of the selling registered dealer, he shall furnish security equivalent to the tax due by way of an indemnity bond for each such declaration, to the authority before whom he is required to file a return of his turnover under rule 15 or rule 17, as the case may be. (10) If a declaration duly filled and signed is lost in transit or from the custody of the dealer he shall obtain a duplicate of the Form with the following endorsement made in RED INK across the page in all the three parts and duly signed by the selling registered dealer. Until such a duplicate Form is obtained, the sate in question shall not be eligible for exemption from tax: "I,........................................................................................................hereby affirm that this is a duplicate of the declaration Form No............................................................signed on....................... and issued to .................................................. who is paying tax on the rolls of the(assessing authority) Signature of the Selling registered dealer
Rule 6-B
Composition of tax in the case of dealers executing works contracts:(1)The dealer who elects to compound the tax for any year under section 5G shall submit an application in the Form-L to the assessing authority each year,within thirty days from the commencement of the year or within thirty days from the date of commencement of the business if he commences the business during the course of the year,as the case may be. SEE FORM-L Provided that the assessing authority having jurisdiction may on sufficient cause and for reasons to be recorded in writing condone the delay in respect of application received after expiry of thirty days from the commencement of the year or after the expiry of thirty days from the date of commencement of business as the case may be.However, the delay conconed shall not exceed sixty days and delay shall be condoned within a period of ninety days from the date of commencement of such year or the business, as the case may be. (2)(i)The assessing authority concerned,after conducting such verification as may be necessary permit such dealer,subject to the conditions specified in the sub-rule(1),to pay in lieu of the amount of tax payable by him during the year,in respect of which such permission is granted,an amount by way of composition as provided in Section 5-G. (ii)Such permission for composition shall be granted within thirty days from the date of receipt of application during the year for which the composition is applied for.The permission shall be in Form L-1 and shall be valid for entire year to which it relates. SEE FORM L-1 (iii)The assessing authority may cancel such permission in the following cases: (a)If the dealer fails to pay tax in any month within the time specified and ,or; (b)if it appears to assessing authority that the dealer has suppressed whole or part of turnover in the return filed by him or;the return filed by the dealer appears to be made thereunder. (c)if the dealer contravenes any provisions of the Act or the Rules made thereunder. Note: Rule 6-B was ins. by G.O.Ms.No. 244 Rev. dt. 17.5.1995 w.e.f.1.4.1995. 6-C.In determining the turnover liable to tax under Section 5A the amounts specified in the Clauses below shall be deducted from the turnover of a dealer apart form the deductions specified in Section 5A. (a) The tax collected by the dealer under Section 5A of the Act. It shall be determined by applying the following formula in case where tax collected is not shown separately or the tax collected under Section 5A has not been deducted otherwise from the aggregate of turnover. |
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(b) 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 a contract or agreement entered into in a particular case and the accounts show that the purchaser has paid only the sum originally charged less the discount. (c) (i) all amounts allowed to purchasers in respect of goods returned by them to the dealer when the goods are taxable on sales provided that the goods were returned within a period of a 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 and the amount for which refund was made; (ii) all amounts received from the sellers in respect of goods returned to them by the dealer, when the goods are taxable on the purchase value provided that the goods were 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 and the date on which and the amount for which refund was received; Provided that the claim for deduction on account of such returned goods shall be admissible if it is preferred within a period of six months from the date on which the goods sold have been received or the goods purchased have been returned as the case may be. (iii) The turnover of the goods generally exempt from tax shall be deducted from the total turnover of any dealer for determining minimum turnover of rupees ten lakhs specified in sub section (1) of Section 5A. Rule 6C ins. by G.O.Ms.No.788, Rev.(CT-II) Dept., Dt.21-09-1996 has inserted this rule and published in A.P.Gazette, Dt.23.9-1996. |
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