FREQUENTLY ASKED QUESTIONS ( FAQ'S) FOR WEBSITE

K               CONCEPTS                                         

Q-1      What is Trade Tax ?

A-1      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 .

Q-2      Does every person /body /association come under the ambit of Trade Tax ?

A-2      No, certain class of dealers or dealers dealing in certain class of commodities do not come under the ambit of Trade Tax .

e.g.-1   Dealers dealing in commodities like salt  ,water,  green vegetables and other commodities notified by the state government under section -4 of  UPTT  act do not come under the ambit of Trade Tax .

e.g.-2   Business organizations like Gandhi Ashram Spinners association and all other association Notified under Section -4 of  UPTT are exempt from Trade Tax .

K      REGISTRATION

Q.1       Who is liable for registration under Trade Tax Act ?

A.1      UPTT- 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.

2. The dealer who is  liable  to  pay  tax  under  any  of  the provisions of the act.                                                                                                                       (see section 8A of UPTT )           

CST-1.The dealer who is liable to pay tax under the Central Sales Tax Act.

2. 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 )

Q.2      When has one to apply for registration under UPTT/CST ?

A 2      UPTT_  An application for registration shall be made within 30

            days 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   within 30

            days from the date on which dealer becomes liable to registration.

                                    (See Rule 4 of CST Registration and     turnover rules )

Q-3      Where does one get registered ?

A-3      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 ?

A-4      For Registration under UPTT one has to apply in form XIV and for registration under CST one has to apply in Form- A .

Q-5      What is the prescribed fee which has to be deposited for registration  under UPTT and CST and their consequent renewals ?

A-5      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 .

For registration under CST one has to deposit Rs. 25 /- one time as registration fee .

Q-6      What are the documents that have to be attached with the Registration application and what procedure is to be followed to get himself     registered ?

A-6      Along with the application form in prescribed format one has to deposit the following documents -

The treasury challan of prescribed fee .

Proof  of address of  shop and residence

Proof for age

bank 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 .

a-                  The proprietor or partner in the case of  a firm .

b-                 The karta ,in the case of  a Hindu undivided family.       

c-                  The managing director or any person authorised by the Board of Directors, in the case of a Limited Company.

d-                 The president or the secretary, in the case of a society or club or association

e-                  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 central Government.

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 ?

A.9        Some important facilities which are provided to registered dealer  are-

(1)   The manufacturer  can  purchase the  raw materials at reduced  rate of Tax.

(2)   There is a provision of Insurance scheme for the dealers registered under U.P. Trade Tax Act .           

           

The registered dealers also enjoy the facility  of unhindered transportation of goods, if covered with  printed and serialized bill / challan/cash memo ..               

   K DEPOSITING TAX/RETURNS

Q-1      What is the procedure of depositing UP Trade Tax /CST /Entry Tax ?

A-1      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     

Q-2      What are the Treasury Heads under which UPTT/CST/Entry Tax is to be deposited?

A.2      Treasury Heads are as follows .

Tax                                                    Treasury Heads

            UPTT                                                   0040 800 102   

            CST                                                     0040 800 101

Entry Tax                                              0040 800 105

     

Q-3      What is the procedure and frequency of filing tax returns ?

A-3      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 as follows-       

(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             20th of March . 

                                                (For details see rule 41 of  UPTT rules)

            (2)        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  UPTT rules)

            (3)        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  UPTT rules)

 

Q-4      When can one revise the return ?

                                    OR

            What should the dealer do, if he discovers any omission or other error in the return submitted by him  ?

A-4      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 Act)

K     ASSESSMENT / CALCULATION OF DUE TAX

Q-1      What is the procedure for calculating tax due to be deposited ?

A-1      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. 

Q-2      What is self assessment scheme in this respect ?

A-2      For the dealers having  taxable turnover under UPTT and CST upto Rs. 50 lakhs  and  satisfying the conditions that -

1-                 There is no evidence of tax evasion against the dealer .

2-                 The increase in his turnover in respect to previous year is more than 15% (For the year 2001-02 onwards this condition has been relaxed )

there 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  assessment  order on the basis of  these papers filed .

Q.3      What are composition schemes in trade tax ?

A.3      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?

A.4      Compounding schemes are notified  for the following Trades/class of dealers-

            (1)For Brick  Kiln  Owners.

            (2)For  Cane Crushers.

            (3) For Electrical contractors

            (4) For Civil contractors

            (5) For Vegetable Ghee manufacturers

(6) For Dealers of  Pathar, Patia, Bolders, Gitti, Granite, Maurang,    Sand and Bajari.

(7) For Biscuit Manufacturers

(8) For Tent House dealers.

 

K     EX-PARTE /APPEAL/MISTAKES IN ORDER /REFUNDS

Q-1      What one has to do if an Ex -parte order is served with demand notice ?

A-1      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 )

Q-2      What one has to do if he finds any apparent mistake in any order passed by any authority under the Act ?

A-2      He has to apply for rectification of such mistake under section -22 of UPTT act within three year from the date of  such order .            

            (For details see section -22 of  UPTT Act)

Q-3      What is the time limit for filing appeal /second appeal ?

A-3      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.

Q-4      What is the time limit in which one should get refund after the refund order ?

A-4      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 )

K     MOVEMENT OF GOODS/ENFORCEMENT/ DEPARTMENTAL FORMS

Q-1      What are the provisions if the goods are brought            within the state through rail /river/air /post ?

A-1      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.

Q-2      What are the provisions if one carries the goods along with him as a personal  luggage ?

A-2      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 .

Q. 3     What is maximum monetry value for which Form III-A,III-B,III-C,

            III-D can be issued?

A.3      The maximum monetary value for which Form III-A,III-B,III-C,

            III-D can be issued  is Rs.5 lakh (for one assessment year )

                                                (see Rule 12 B (8) of UPTT Rules)

Q-4      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

  Q-6      What will be quantum of security in lieu of penalty when the goods are seized by authorities of  Mobile Squads/Assistance Center

A-6      Quantum of security in the case of goods seized by      Mobile Squad

 

For the goods imported through fake /stolen form-31 or without form-31 or goods different than those declared in form 31

For goods moving from UP  to UP

For goods moving from UP to Ex UP

For

Registered Dealers

 Three times of tax due or  40 % of the value of the goods which ever is lesser

Two times of tax due on the value of goods 

Three times of  the Tax

 due  on the value of goods

For Unregistered Dealers

 Three times of tax due or  40 % of the value of the goods which ever is higher

40% of the value of goods

40% of the value of goods

 

Quantum of security/compounding fee in the case of goods seized by Assistance Center

 

For the goods imported through fake/stolen form-31 or without form-31 or goods different than those declared in form 31

For the goods more than those declared in      form 31

For

Registered Dealers

 Three times of tax due or  40 % of the value of the goods which ever is higher

Security will be three times of tax due or 40% value whichever is less however the compounding fee if opted by dealer will be equal to the tax due

For Unregistered Dealers

 Security / compounding fee will be three times of tax due or  40 % of the value of the goods which ever is higher

 Security / compounding fee will be three times of tax due or  40 % of the value of the goods which ever is higher

  

K               ENTRY TAX

Q-1      What is Entry Tax ?

A-1      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 ?

A-2       If registered under uptt-

                        .           There is no need for separate registration under Entry Tax

provisions,   however  an   information  in  form  'A' is to be given within  sixty  days  of commencement of ordinance.

                        (See Rule3 of UP Tax on entry of goods)

                        If not registered under uptt-

An 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)

Q3       When the dealer is liable to  pay tax under Entry Tax provisions ?

A3         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 outside U.P

                                                               (See sec 4(3) of U.P. Tax on entry of goods)  

Uttar Pradesh Trade Tax Department