ASKED QUESTIONS ( FAQ'S) FOR WEBSITE
What is Trade Tax ?
Whenever a trade or business activity is performed by any individual,
any group or association, any company, any authority or body or any
organization, he has to pay certain percentage of turnover of sales
/ purchases to the government as trade tax, which inturn is utilized
by the state for its development
Does every person /body /association come under the ambit of
Trade Tax ?
No, certain class of dealers or dealers dealing in certain
class of commodities do not come under the ambit of Trade Tax .
Dealers dealing in commodities like salt
vegetables and other commodities notified by the state government
under section -4 of UPTT
act do not come under the ambit of Trade Tax .
Business organizations like Gandhi Ashram Spinners association
and all other association Notified under Section -4 of
UPTT are exempt from Trade Tax .
is liable for registration under Trade Tax Act ?
1. The dealer whose annual turnover is above Rs. 1 lakh in the
case of manufacturer and Rs 1.5 lakh in the case of other dealers.
The dealer who is liable
to pay tax under
the provisions of the act.
(see section 8A of UPTT )
dealer who is liable to pay tax under the Central Sales Tax Act.
Any dealer liable to pay tax under UPTT,whether or not he is liable
to pay tax under CST.
(see section 7(1),7(2) of CST )
has one to apply for registration under UPTT/CST ?
UPTT_ An application
for registration shall be made within 30
from the date on which dealer becomes liable to registration.
(See Rule 54 of UP Trade tax Rules)
CST- An application
for registration shall be made
days from the date on which dealer becomes liable to registration.
(See Rule 4 of CST Registration and
turnover rules )
one get registered ?
The dealer should get registered in the sector office of the
Trade Tax designated for his place of business . The whole of the
State is divided in several Trade Tax sectors.
Q-4 What is the prescribed application form
for registration UPTT and CST ?
For Registration under UPTT one has to apply in form XIV and
for registration under CST one has to apply in Form- A .
What is the prescribed fee which has to be deposited for registration
under UPTT and CST and their consequent renewals ?
For registration under UPTT one has to deposit Rs. 200/- as
Registration fee for the First year and Rs 100 /- per year as renewal
charges , alternatively one may make a one time deposit of Rs 1200/-
for registration and renewal fees. which will be valid till
his business continues .
under CST one has to deposit Rs. 25 /- one time as registration fee
What are the documents that have to be attached with the Registration
application and what procedure is to be followed to get himself
Along with the application form in prescribed format one has
to deposit the following documents -
treasury challan of prescribed fee .
of address of shop and residence
a/c and other documents as required by the registering authority.
After the submission of the application in prescribed form the registering
authority calls the dealer for the enquiry and he may be asked to
deposit the security in the interest of revenue. The registering authority
will perform a spot enquiry to certify the location of the business
etc and then after performing
above formalities the registration certificate may be issued .
Q-7 Who can sign the Registration application for UPTT
A-7 Registration application can be signed by any of
the following .
The proprietor or partner in the case of
a firm .
The karta ,in the case of
a Hindu undivided family.
The managing director or any person authorised by the Board
of Directors, in the case of a Limited Company.
The president or the secretary, in the case of a society or
club or association
The Head of the office or any other officer duly authorised
by him , in the case of a department of a State Government or the
f- In any other case, by the dealer himself or by the Principal officer, or any other officer ,duly authorised by him, of the authority or body , as the case may be .
Q-8 Can one authorise any other to sign the registration application ?
A-8 Yes but only as provided in rule 54 of UPTT .
Q.9 What facilities has the State provided
to the registered dealers ?
Some important facilities which are provided to registered
The manufacturer can
purchase the raw materials at reduced
rate of Tax.
There is a provision of Insurance scheme for the dealers registered
under U.P. Trade Tax Act .
registered dealers also enjoy the facility
of unhindered transportation of goods, if covered with
printed and serialized bill / challan/cash memo ..
Q-1 What is the procedure of depositing UP
Trade Tax /CST /Entry Tax ?
It is to be deposited by the dealer in any branch of the designated
schedule banks. The details are to be filled up in the Treasury challan
(Form-1) in quadruplicate
What are the Treasury Heads under which UPTT/CST/Entry Tax
is to be deposited?
Treasury Heads are as follows .
UPTT 0040 800 102
0040 800 101
0040 800 105
What is the procedure and frequency of filing tax returns ?
All dealers have to file returns mentioning details of there
sales , purchases etc as per Form-IV for UPTT and Form-1 for CST to
their assessing officer. The
frequency of filling the tax returns depends upon the turnover
(1) For the dealer whose net
annual turnover is
above Rs 10
Lakhs, monthly return by the end of next succeeding month,
is to be filed . Provided that the return for the month February is
to be filed by
(For details see rule 41 of
For dealer liable to pay tax and whose net annual turn over
is below Rs 10 Lakhs , Quarterly return for the Quarter ending on
June 30, September 30, December 31 and March 31 is to be filed within
month of expiry of quarter concerned .
(For details see rule 41 of
For a dealer whose total admitted tax liability is Rs.10,000/-,
he may submit on annual return
However for the first year of business all dealers have to file monthly returns .
(For details see rule 41 of
When can one revise the return ?
What should the dealer do, if he discovers any omission or
other error in the return submitted by him
When the dealer discovers any omission or error in the return
submitted by him , he can file a revised return before the time prescribed
to file the next return .
(For details see
section 7(1)(C) of UPTT
/ CALCULATION OF DUE TAX
Q-1 What is the procedure for calculating
tax due to be deposited ?
The tax due is calculated on the basis of the value of taxable
goods transacted and the prescribed rate of tax for the same .The
total tax for all transactions in the filing period is to be deposited
by the dealer and a copy of challan as the proof of such deposit is
to be enclosed at the time of filing
returns. The assessing officer passes a final assessment order
for each year of business within the time prescribed, thereafter ;
any difference of tax may either need to be deposited by the dealer
or be refunded to the dealer appropriately.
What is self assessment scheme in this respect ?
For the dealers having
taxable turnover under UPTT and CST upto Rs. 50 lakhs
and satisfying the conditions that -
There is no evidence of tax evasion against the dealer .
The increase in his turnover in respect to previous year is
more than 15% (For the year 2001-02 onwards this condition has been
is a scheme of self assessment in which the dealer has to file the
Form TT-47 and related sale purchase details along with the exemption
forms if any to the assessing officer by 31 December(which may be
extended by the assessing officer till 31 March next ) for the preceding
assessment year, The assessing officer passes the final
on the basis of these
papers filed .
are composition schemes in trade tax ?
Under section 7-D of U.P.T.T. there is provision to charge
a lumpsum money as a composition fee in lieu of tax on commodities/class
of dealers ,which are notified for this purpose separately
Q.4 What are the trades covered under the
compounding schemes as of now?
Compounding schemes are notified
for the following Trades/class of dealers-
For Electrical contractors
For Civil contractors
For Vegetable Ghee manufacturers
(6) For Dealers
of Pathar, Patia, Bolders,
Gitti, Granite, Maurang,
Sand and Bajari.
(7) For Biscuit
(8) For Tent
/APPEAL/MISTAKES IN ORDER /REFUNDS
What one has to do if an Ex -parte order is served with demand
He can apply to the assessing officer within thirty days
of service of
such order and demand notice with the sufficient proof of deposit
of admitted tax
(See Section -30
of the UPTT Act )
What one has to do if he finds any apparent mistake in any
order passed by any authority under the Act ?
He has to apply for rectification of such mistake under section
-22 of UPTT act within three year from the date of
such order .
details see section -22 of UPTT Act)
Q-3 What is the time limit for filing appeal
/second appeal ?
First appeal can be filed within 30 days from the date of service
of the order while the second appeal can be filed within ninety days
of service of first appellate order.
What is the time limit in which one should get refund after
the refund order ?
Within three months of the date of order if it is passed by
assessing officer , and
Within three months from the date of
receipt of order by the assessing officer if it is passed by
any appeal ,second appeal or by any court .
(See section 9
& 10 of UPTT act )
OF GOODS/ENFORCEMENT/ DEPARTMENTAL FORMS
What are the provisions if the goods are brought
within the state through rail /river/air /post ?
When the goods are consigned through rail /river/air /post,
the consignee shall take
the delivery of the goods only after the concerned GR/RR and form-31
are endorsed by the officer authorized to do so.
What are the provisions if one carries the goods along with
him as a personal luggage
When the goods are brought in to the state as a personal luggage
, the person bringing them shall carry with him form 31 (declaration
form) duly filled an signed by the importer shall submit the
same for endorsement, before
the officer authorized to do so, by the next working day .
3 What is maximum monetry value for which Form III-A,III-B,III-C,
can be issued?
The maximum monetary value for which Form III-A,III-B,III-C,
can be issued is Rs.5
lakh (for one assessment year )
(see Rule 12 B (8) of UPTT Rules)
What is the maximum monetary value for which
Form C can be issued ?
A-4 A single form C may cover all transactions of sale with one dealer in the same financial year.
Q-5 How many sellable forms a dealer may get from appropriate authority at one time ?
A-5 On an average of six months consumption in the case of Pvt. Ltd . Firm and on an average of three months consumption in the case of other dealers
What will be quantum of security in lieu of
penalty when the goods are seized by authorities of
Mobile Squads/Assistance Center
of security in the case of goods seized by
Quantum of security/compounding fee in the case of goods seized by Assistance Center
What is Entry Tax ?
A dealer who bring are causes to be brought any goods in to a local area
becomes liable to pay tax, which has named as entry tax .
Q-2 What are liabilities of registration
under Entry Tax ?
registered under uptt-
There is no need for separate registration under Entry Tax
form 'A' is to
be given within sixty days of commencement
Rule3 of UP Tax on entry of goods)
If not registered under uptt-
application under S.5(1) of
Tax on Entry of Goods 1999, shall be made in form 'B'.
(See Rule3 of UP Tax on entry of goods)
When the dealer is liable to
pay tax under Entry Tax provisions ?
No dealer who
brings or causes to be brought any goods into a local area shall be
liable to tax. If during assessment year aggregate value of such goods
is less than Rs 1 lakh incase of manufacture and Rs 1.5 lakh
incase of other
dealers. No such process shall be applicable for goods imported from
(See sec 4(3) of U.P. Tax on entry of goods)