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| Corporate practice bd |
Product Preservation
(1)
In case of separate VAT register (same Group Company) and individual business
accounts, guidelines are required for separate VAT invoice and sales invoice of
all VAT registers from a single depot, this applies to Business Friendly VAT
Law.
(2)
If the supply is provided through 1 depot of two organizations and separate
invoice, is it possible to separate accounts? If a depot is used by more than
one company, the following procedure should be followed, e.g.
(A)
the depot must be shown in the registration of each company;
(B)
the goods of each company have to be transferred to the depot by transfer
invoice (VAT-7.5);
(C)
the stock of goods of each company should be kept separately in the depot i.e.
one VAT-7.2 should be kept for each company;
(D)
a separate VAT-7.3 should be used when selling the goods of each company;
(E)
All accounts including financial accounts should be kept separate in each
company's product.
Appeal Settlement
(1)
If an appeal is made under the Act of 1991 and if the taxpayer wins the case
after July 1, 2016, how can the money deposited as 10% be refunded?
(2)
If an appeal is made under the 1991 Act and the government wins the case after
July 1, 2018, how will the tax be paid? (1) Reducing adjustment must be
adopted. Subject to the judgment of the case, the deductible adjustment has to
be taken against the note No. 23 of the submission.
(2)
Incremental adjustment must be made. Subject to the judgment of the case,
incremental adjustment has to be made against the note no. 18 of the
submission.
Sections of the law on transitional issues
138.
Repeal and custody. (1) With the introduction of this Act, the Value Added Tax
Act, 1991 (Act No. 22 of 1991) shall be repealed.
(2)
Notwithstanding the repeal of the said Act:
(A)
the measures taken or taken under the said Act, subject to being consistent,
shall be deemed to have been taken or taken under this Act;
(B)
all rules made under the said Act, all orders issued, all notices issued or
notices issued shall be deemed to be in accordance with the provisions of this
Act, until repealed or amended, and shall be deemed to have been made, given or
issued under this Act;
(C)
any tax or fee or any other liability imposed by or under the said Act,
immediately before the commencement of this Act, shall be levied in accordance
with the said Act, and if any matter remains unresolved, it shall be settled in
accordance with the said Act. Not repealed.
138 Transitional Tax Accounts.
(1) Notwithstanding the provisions of section 33,
the value added tax levied on taxable supplies shall be payable on the day of
enactment of this Act, if:
(A)
any supply is made after or after the day of introduction; And
(B)
for any supply the tax invoice is issued before the day of introduction or the
price of the supply is paid or both activities are completed;
However,
if the person has paid value added tax on the supply under the Value Added Tax
Act, 1991 and has shown the value added tax in the submission submitted to the
Commissioner under the said Act, then value added tax will not be payable.
(2)
If any supply executed under sub-section (1) is a sequential or periodic
supply, value added tax shall be payable separately on each part and the
activity performed shall be treated as a separate supply.
139.
Agreement bound after the enactment of this Act.
(A)
the contract price shall be deemed to include value added tax and supplementary
duty (if any) payable on the supply; And
(B) The supplier shall pay the said tax on the supply made under the said contract even if it does not include value added tax and supplementary duty (if any) in determining the contract price of the said supply.
Rules of the rules regarding transitional issues
15. Transitional registration or enrollment
(1) The Board shall create a
database by the data of registration and enrollment of persons registered or
enlisted under the VAT Act.
(2)
The Commissioner shall, under Rule 4 or 5, register or enlist persons
registered under the VAT Act, using the data of the database as described in
sub-rule (1).
(3)
After the date fixed by the Board, if any person registered or listed under the
VAT Act is not registered or enlisted under the Act, the Commissioner may suspend
or cancel the said registration or enrollment.
(4)
After cancellation of registration or enlistment under sub-rule (3), if it is
revealed that the person owes any arrears under the VAT Act or any offense has
been committed, then the relevant provisions of the said Act shall apply to him
as if he were A registered or enlisted person.
(5)
If a person registered under the VAT Act wishes to be listed under the Act, he
shall be liable to prove that his annual turnover is below the registration
limit.
116.
Adjustment to the current account under the Value Added Tax Act, 1991 (VAT-18).
If there is a tax and it is unable to adjust against the tax payable under the
said Act, on the date of enactment of the Act, subject to the subsequent
provision of this rule, the adjudicator may make a deductible adjustment under
the said Act.
(2)
No person registered under the said Act shall be able to make a deductible
adjustment under the Act of termination under the said Act, if:
(A)
he is not registered under the law;
(B)
there is a case pending against him under the said Act;
(C)
any appeal or writ under the said Act or Act is pending; Or
(D)
He has any arrears of tax under the said Act or Act.
(3)
A registered person may make a maximum tax deduction of 10% (ten per cent) of
the net tax payable under the Act during each tax period.
(4)
A person registered under sub-rule (3) for the purpose of making a deductible
adjustment shall make an application to the Commissioner along with the
submission (VAT-19) submitted under the said Act.
(5)
Within one month of receipt of the application, the Commissioner shall, after
verifying the conditions of sub-rule (2), issue a certificate in the form
"VAT-16.6" on the basis of which the registered person shall be dealt
with under the concluding law under the said Act.
(6)
In the case of conducting activities under one registration under multiple
registration laws under the said Act, the person registered under the statutory
closing act mentioned against each certificate issued by the Commissioner in
the form “VAT-16.7” shall be entitled to make deductible adjustment.
119. Repeal and custody.
(1) As soon as this rule came into force, notification was
issued in accordance with SRO No. 18-Ain / 91/3-VAT, dated: 26th June, 1396 BS.
These rules, as mentioned, shall be repealed.
(2)
Notwithstanding the repeal of the said rules:
(A)
the measures taken or taken under the said rules, subject to the provisions of
these rules, shall be deemed to have been taken or taken under the rules;
(B)
All orders or notices issued under the said rules, subject to their conformity
with the provisions of these rules, shall remain in force until repealed or
amended and shall be deemed to have been made, issued or issued under these
rules.
What is registration?
•
In the value added tax system any importer, exporter or taxable supplier has to
be associated with the VAT system. This connection with the VAT system is
called registration. To work with the VAT administration, to use VAT related
documents or to conduct any taxable business is to be done under VAT law. That
is why it is necessary to register with the VAT system. In legal terms,
affiliation with the VAT system under section 4 or 10 of the Value Added Tax
and Supplementary Duty Act, 2012 is called VAT registration.
What is BIN?
Business
BIN or Business Identification Number (BIN) is a unique and unique 9 digit
number by which a taxpayer is identified. BIN is issued against VAT
registration and turnover tax registration.
Features
of BIN:
01.This is a meaningless serial number
02.BIN is 9 digits with first 8 digits serial number and 9 digits check digit to
avoid duplication.
03.The BIN of an
organization will never change
04.The same number will be
applicable even if the company is registered in VAT system from turnover or
transferred from VAT to turnover
05.BIN will not change
in case of transfer from one commissionerate to another