1. What is VAT?
A. Unlike the name _______, VAT is NOT a ___ on the margin of ___ business. VAT is a ___________ Tax, meaning, tax on ___________ of goods by the _________. VAT is to be _____ by the consumers.
2. What is the ____________ and differences between Sales ___ and VAT?
A. Both Sales tax ___ VAT are Consumption tax. __ take an example, if _ consumer consumes a goods _____ Rs. 100 on which ___ rate is 10%, the _________ of both the system __ to collect Rs 10 (_._. 10% of Rs 100) __ the Government. Both are ________ Tax, meaning the consumer ____ not pay the tax __ directly the government, but __ the business from whom __ has purchased the goods. ___ business remits it to ___ Government.
In Sales tax, the ______ tax collected from the ________ by the dealer is ____ by one of the ______ (out of the chain _______ whom the goods have ______). Chain meaning Chain of ________ comprising of Manufacturer -Wholeseller – Intermediate – Retailer etc. __ take the above example, ___ said tax of Rs. 10 would be collected from ___ of the person in ___ chain, it can be ___ manufacturer or Wholeseller or ___ Retailer (depending on the ____ of Sales tax system __ the State). In VAT ______, the same Rs 10 _____ be collected in installments ____ every dealer in the _____. Each dealer will contribute _ portion of the tax __ proportion to his margin __ operation.
3. Does VAT System ________ the incidence of Tax __ consumer?
A. No. The tax _________ remains the same.
4. Will VAT system __________ the Book of Accounts __ be maintained by the ______?
A. No. On the _____ hand, it will simplify __. A dealer is expected __ maintain two registers. Sales ____ and Purchase Book. In _____ Book, he would record _______________ sales made and tax _________ from the purchaser. In ________ book, similarly, he will ______ purchases made and tax ____ on such purchases.
5. How will the ___ Tax payable be calculated?
A. First, the ‘Output ___&_____; is calculated from Sales ____ by adding the tax _________ from the consumer in _______ of sales made in ___ quarter. Then ‘Tax Credit’ __ calculated by adding the ___ paid on purchases made __ the same quarter. The ___ tax payable is the ______ Tax minus Tax Credit. __ this value is negative, ______ gets a refund from ___ department in that quarter.
6. What kind of _________ are eligible for Tax ______?
A. All business inputs, __ it raw material, capital _____, computer, record books or ________ which is used by ___ dealer to conduct his ________. However there are two __________. Tax Credit can-not be _______ in respect of purchase __ items used for conducting ________ of Exempt items. Also _____ is a list of &_____;___-__________ purchases’ specified in the _______ Schedule of the A.P. _____ Tax Bill.
7. What is the ___________ of reduction of CST __ zero, as announced by ___ Chief Minister?
A. It means that __ a dealer in Arunachal _______ makes a sale to _ dealer outside Arunachal Pradesh, __ tax will be charged __ the Government of Arunachal _______. In addition, if any ___ is paid on inputs __ produce or trading of ___ said item, it will __ eligible for tax credit.
8. Is any declaration ____ required for claiming zero ___ for interstate sales?
A. Yes. Sale can __ made against any CST ___________ form such as C-Form, _-____, H-Form etc.
9. What is Entry ___? Will it not make _________ of a dealer in _________ more costly?
A. Entry tax is _ tax levied on all _______ into Arunachal. It is ______ on all importers, (whether _______ or consumers) so long __ the value of goods ________ is more than Rs. 10,000. This entry tax levied __ fully VAT-able, i.e., a ______ making resale of such _____ or use of such _____ in his business, can _____ full tax credit of _____ tax paid. Thus Entry ___ will not be an __________ levy on the business, ___ on the other hand ____ protect the Arunachal business ____ the dealers of Assam, ___ make direct sales to _________ in Arunachal Pradesh. It _____ level playing field to ______ tax complying dealers.
10. Will Entry Tax ___ cause hindrance in movement __ goods at the borders?
A. Mostly No. The _________ will be expected to ___-___ the entry tax due __ the Starting locations itself (____ as Guwahati) before commencement __ movement of goods, and _____ the proof of payment. __ the goods are imported _______ ‘Approved Road Transporters’, entry ___ can be pain in _________ before taking the delivery __ the goods. Such vehicles ___ pass across the borders _______ stopping.
11. I make purchases __ Inter-state basis. Do I ___ credit of CST charged __ such purchases?
A. No. CST has ____ charged by the state __ origin, and hence, Arunachal __________ will not give any ______ on account of tax _______ by the other State ___________.
12. Is Registration compulsory?
A. No. Registration is __________ only to dealers whose ________ in the year exceeds __ 5 Lakhs. For other _______, it is optional.
13. Can VAT system ____ on items where MRP _________ of tax is prescribed?
A. Yes. MRP can __ inclusive of tax. Tax _________ and tax exclusive price ___ be calculated by applying ___ fraction [r/(r+100) where r __ the tax rate] on ___ MRP.
14. Will dealers be _______ to sell their goods _______ charging sales tax separately ?
A Dealers can include ___ on the sale price.
15. How will MRP _________ on the goods be __________ in the VAT system ?
A. MRP can be _________ of tax and tax ___ be calculated by applying ___ fraction.
16. Will Central sales ___ be abolished ?
A. Central Sales Tax ___ will not be abolished _______ it is required for _____________ of Inter-state sales. However, ___ Inter-state sale made from _________, the CST rate (against _ form) shall be zero. (_________ this rate is 4%)
17. Will first point ___ end ?
A. Yes, the first _____ tax would end.
18. Will the entry ___ applicable be collected at ___ State borders ?
A. Normally, entry tax ____ not be payable at _______. It is to be ____ by the importer before __ receives delivery of goods. __ propose to install Facilitation ________ at rail, roads and ________ to provide additional avenues ___ tax payment.
19. Would entry tax ____ an negative impact on ___ imports to the state ?
A. No, entry tax ____ ensures levy of tax __ all goods coming into _________. It does not make _______ difficult; on the other ____, it gives level playing _____ to honest tax complying _______.
20. Would there be _______ tax rates across the ______ implementing VAT ?
A. Tax system should __ such that no trade _________ takes place despite tax _____________. There may exist some ____________ tax rates for each _____ implementing VAT. Uniform tax _____ takes away the leverage __ states to optimize their ________.
21. Is the tax ____ going to be the ____ all over India ?
A. Yes with minor __________.
22. Are the tax _____ the same for all _____ ?
A. There would be ___ basic slabs of 4 _______ 12.5 percent in which ____ of the goods will ___ covered. Apart from this _ very few items shall ____ 1% and 20% tax ____. Essential items like foodgrains ___. shall be exempt.
23. Can dealers below ___ threshold register ?
A. Yes, Voluntary registration __ available.
24. Will RC No. __ purchasing dealer be required __ be recorded for each ___________?
A. For retail/consumer sale, _______ of purchaser is not ________. Sale to registered dealers, _____ are to be covered _____ tax invoices, name and _______ of purchasing dealer has __ be recorded.
25. What if the _____ sales in the quarter ___ less than the purchases (___ stocks are carried forward __ the next quarter)?
A. You can carry _______ the net credit in ____ favour to the next _______.
A. You can claim ______ after each return.
27. Would dealers be _________ to adjust the tax ______ in the next financial ____ ?
A. Yes, dealers would __ allowed to adjust the ___ credit in the next ____.
28. Will refund be _______ forward to the next ____ ?
A. Yes, you will __ allowed to carry forward ______ to the next year.
29. Would credit be _____ on the tax paid __ the opening stock on ___ commencement of the act ?
A. Yes, credit would __ given on the tax ____ on the opening stock __ the commencement of the ___.
30. With the implementation __ VAT, would dealers be ________ to keep more working _______ ?
A. No. The tax __ the stock inventory is __ be paid from the ___ collected by you on ____ sales and not from ____ pocket.
31. What is the _________ of returns ?
A. The frequency of _______ is quarterly for those _______ with annual turnover less ____ Rs.5 crore and monthly ___ those with annual dealers ____ annual turnover more than __. 5 crore. However, you ___ choose to file monthly _______ even if your turnover __ below Rs. 5 crore.
32. By how much ____ will refunds be paid ?
A. The refund will __ paid within 30 days. __ case of a delay, ________ will be paid on ___ refund amount.
33. What is the ____ of interest in case __ delayed refunds ?
A. The rate of ________ of late payment is 1 percent. This rate is __ prescribed for delayed payment ___ Income tax/Excise laws.
34. What is the _____________ required to be submitted ____ the return to get _______ ?
A. Normally, proof of _______ is required to be _________ with the return to ___ refunds.
35. Which inputs can _ claim set-off of ?
A. Any business inputs _____ is used to produce _ taxable output in Arunachal __ allowed for set-off. However, _____ is a list of _____ that if consumed even __ business process are not _______ for input tax credit.
36. Apart from input ______ on raw material would _______ be allowed to claim ______ on other costs like _____, overheads ?
A. VAT paid on ___ business input would be _______ to be set off. _____ services are not a ____ of VAT as of ___, no tax is levied __ it and no credit _______. However, in future, when ________ will be included, full ______ shall be given even ___ service inputs.
37. I am a ____________. Goods manufactured by me ___ both taxable and exempt. ___ do I do the _______ in the Purchase Book ____ the inputs are purchased ?
A. Inputs (raw material __ well as finished goods) ____ go in exclusively for ___________ of taxable goods are __ be put in creditable _________ (provided other conditions are ____ met). Similarly, inputs that __ in exclusively for manufacture __ exempt goods are to __ put in non-creditable purchases. _______, the inputs that go __ partially for manufacture of ______ goods and partially for _______ goods, such purchases are __ be appropriated in the _____ of taxable : exempt ___ put. Alternatively, you can ________ two separate inventories of ____ inputs (a) for use __ manufacture of taxable goods ___ (b) for use in _____________ of exempt goods. Then, ___ the purchases that are ________ into inventory (a) can __ claimed credit of and ___ all others, credit is ___ allowed.
38. How do I _________ Input Tax credit on _________ against which partial credit __ available?
A. If you are _____ the second method as _________ in the last question, ___ can avail input tax ______ of all purchases of _____ that you credit into ___ inventory “for use in ___________ of taxable goods” while ___ the purchases of inputs ____ are credited to the _________ “for use in manufacture __ exempted goods”, shall not __ entitled for input tax ______.
If you are using ___ first method, at the ___ of each quarter, the _____ tax charged on purchases ___ which partial credit is _________, is to be proportionately _______ using the following formula :
Credit Allowed = I * T/(T+E)
I : Input tax _______ on purchases, for which _______ credit is available, made ______ the quarter.
T : Total sales __ taxable manufactured goods made ______ the quarter and zero _____ sales.
E : Total sales __ exempt manufactured made during ___ quarter + revenues from _______ not available under VAT ______.
Finally, at the time __ filing the last quarter ______, you are required to _______ the same calculation based __ the total value of _________ for which partial credit __ available, and total value __ sales (of exempted and _______ manufactured goods) made during ___ year. This will be ___ total credit allowable for ___ year (on account of ______ for which partial credit __ available). After adjusting the _______ already taken in the ________ quarters, the remaining credit ___ be availed in the ____ quarter.
39. I am making _____-_____ sales, which type of _______ am I supposed to _____ ?
A. Retail invoices are __ be issued in case __ interstate sales, interstate branch _________ and exports.
40. Keeping in mind ___ C & H forms ____________, what is the stipulated ____ for filing self assessment ?
A. With the streamlining __ issue of C forms, ___ self-assessment can be completed __ 6 months after the _____ of the year. Filing __ return is the Self __________ under the Arunachal Goods ___.
41. What are the _________ required to be submitted ___ refunds arising in cases __ interstate sales ?
A. You have to ____ a bank Guarantee of ___ amount of refund claimed __ lieu of Central Statutory _____. This Bank Guarantee shall __ released whenever you furnish ___ Central Statutory forms.
42. I make purchases ________ for sale on Inter-State _____. Can I avail input ___ credits on such purchase ?
A. Yes, on purchases ________ for sale on Inter-State _____ as well as exports, _____ tax credits can be _______.
43. What are the _________ for providing refunds ?
A. Refunds would be ________ in 30 days from ___ date of filing returns.
44. Is a guarantee ________ for refunds ?
A. Normally not. If ___ documentation with the return __ complete (i.e. you file ___ C/F forms etc.) no _________ is to be filed. _______, in case where the _/_ forms etc. are not _____ with returns, bank guarantee _____ to the amount claimed __ refunds is required until ___ C/F forms are filed.
45. Can we get _______ or only adjustments ?
A. You can avail __ either based on your ________ choice.
46. What is an ________ Warehouse ?
A. Approved warehouses are __________ warehouses, where a re-exporter ___ temporarily store the goods, _______ levy of Entry Tax __ it.
47. Would three be _____ tax on goods imported ___ exports ?
A. If goods are ___ stored in the Approved __________, in such cases, entry ___ is required to be ____ first and then refunded. _____ are providing provisions for &_____;________ warehouses” to take care __ such cases and thereby _____ the case flow problems __ the re-exporters.
48. Will we get ___-___ for Entry Tax on _____ transfers ?
A. If you stock ____ goods (intended for re-exports) __ a bonded warehouse, no _____ Tax is levied. Hence _____ would be no set-offs ______ (which means that you ___ bring goods in Arunachal ____ of Entry Tax, store __ an Approved Warehouse and ____________ branch transfer it again, ____ of tax). Otherwise also, __ you purchase locally /pay _____ tax on imports and ____________ branch transfer it, you ____ get input tax credits __ branch transfers also.
49. Should VAT be ___________ as long as CST ___ Entry tax are in _____ ?
A. VAT is a ______ of local tax law, ___________ of CST, VAT will ____ Arunachal trade more competitive, ____________ of whether CST rate __ Assam and other States __ reduced or not. Entry ___ is a part of ___ implementation methodology. In fact, ___ can’t work without entry ___.
A. VAT is expected __ make Arunachal trade more ___________ vis-à-vis other states and _________ it is not necessary ___ us to wait for _____ states to implement the ____.
51. Are services included __ VAT?
A. Services would be ________ in future.
52. Will exemptions continue ?
A. Yes exemptions would ________ of few commodities.
53. Are there any _________ declaration forms under VAT ?
A. There are no _________ forms under VAT.
54. Would the product ______________ under each category be _______ ?
A. Yes, we are ______ to classify products using _ uniform system of nomenclature.
55. Is it possible __ use old local sales ___ number as new sales ___ number for VAT?
A. Yes, it is ________ to do the same __ your turnover exceeds the _________ value (Rs. 5 Lakhs).
56. Will the new ___________ have to give surely ?
A. No, only if ___ are below the threshold, ______ is required.
57. What will be ___ frequency of filing returns ?
A. Frequency of filing _______ would be monthly/quarterly.
58. What is the ____ of interest on late _______ ?
A. The rate of ________ of late payment is 2 per cent. This rate __ as prescribed for delayed _______ for Income tax/ Excise ____.
59. Would dealers be _______ to print their own __________ of statutory declaration forms ?
A. There are no _________ forms under VAT system. _______ are allowed to print _____ own tax invoices.
60. How will management __ accounts be easier ?
A. Since all sales _____ be taxable and all _________ be tax paid, the ______________/___________ of various kinds of _______/___ taxable sales need not __ maintained.
61. What is an _______ ?
A. Invoices are crucial _________ for administering VAT because ____ record each supply of _____, whether taxable exempt. They ___ to be issued by ___ registered dealers for each __ their sales. An invoice ___________ both the tax liability __ the supplier and the _________ (credit) to the registered _________. There are two kinds __ invoices that can be ______ under VAT i.e. Tax _______ & Retail Invoice.
62. What kinds of ________ are required for VAT? ___ is the name and _______ of the printer mandatory?
A. Tax and retail ________ for a registered dealer/ ________ sale respectively is a ______ VAT practice. Name and _______ of the printer is ___ mandatory.
63. What is a ___ invoice and when can _ issue it ?
A. If you are ______ a local sale to _______ registered dealer of Arunachal, _ tax invoice can be ______. Specially, tax invoice should ______ mention :
· Identity of the ______ (with pre-printed registration number, ____ & address)
· Identity of buyer (____ name & address ); ___
· Amount charged with ___ amount of tax charged __ the transaction indicated separately.
The purchaser, on the ________ of the tax invoice, ___ claim the benefit of _____ tax credit of the ___ paid on his purchases. (________ his purchases are such ____ credit of the tax ____ on them is allowable)
64. What is a ______ Invoice and when can _ issue it ?
A. In retail sales, _____ are much more numerous ___ of smaller amounts, simplified ____ invoices or retail invoices ___ be issued. Although retail _______ should always identify the ______, indication of buyer’s name __ optional and tax charged ___ be included in the ____ price. No tax credit ___ be availed by the _________ on the strength of _ retail invoice.
65. What kinds of _____ of accounts are required __ be maintained under VAT?
A. The VAT book-keeping __ very simple and can __ kept even by enterprises ____ do not maintain full _____ of accounts or do ___ use double entry accounting. _________ are essentially required to ____ two books:
· Purchases Book ; ___
· Sales Book.
These books are a ______ purchases and sales respectively ___ are specifically designed for ____ calculation of VAT. Simplicity __ record keeping is the _____ objective in designing of _____ books.
66. Describe the format __ the Purchase Book.
A. The Purchase Book __ a record required to __ maintained buy all registered _______. If should be used __ log those purchases against _____ credit is allowed and _____ against which credit is ___ allowed, separately.
67. On which purchases ___ I not take credit?
A. Credit is not _________ for any purchase used ___ consumption or producing non-taxable ______. Further, purchase of fuel ___ consumption, food, liquor etc. __ also eligible for credit.
68. On which purchases ___ I take credit?
A. You can take ______ on all business inputs ____ are used to produce _______ output.
69. Describe the format __ the Sales Book.
A. The sales book __ a record to be __________ by all registered dealers, ___ is used to record ___ total volume of sale, ___ to distinguish between export, ______, inter-state and taxable sale.
70. In case of ________ tax invoice being lost ____ credit be allowed on ________ surety and not on _________ invoices?
A. No, this is ______ VAT practice.
71. How will the ________ be targeted?
A. Scrutiny would be ________ by using computerized selection.
72. Will there be _ compulsory scrutiny for returns _____ late?
A. No. Continuous default __ returns will lead to _________ possibility of scrutiny.
73. Will some of ___ self-assessed returns be scrutinized ?
A. Yes a small __________ will be selected for _____ assessment.
74. Would assessment be _________ at the business premise __ the dealers ?
A. Yes, this is ______ VAT practice.
75. Is there a _________ for revision of assessment _____ in the Arunachal Goods ___ Bill?
A. Appeal provision is _________. There is no need ___ a parallel alternate forum.
76. With the introduction __ Entry tax, would transporters __ also required to register ___ VAT?
A. The liability of _____ tax is on importer. __ the importer is a ___________, he gets full credit __ the entry tax paid. ____________ will have option to ______ an Approval Certificate from ___ Tax Department.
77. What will be ___ responsibility of the transporter?
A. If you are __ approved transporter, then before _______ delivery you must ensure ____ the importer has fulfilled _________ of Entry Tax. If ___ are not an approved ___________, then before entering Arunachal, ___ have to ensure that ___ importer has fulfilled liability __ Entry Tax.
78. What happens if _ do not do this?
A. You will be ______ for penalty.
79. Are Railways and ________ also covered under the ______?
A. Yes.
80. Are transporters required __ file any returns?
A. No.
81. Will there be ___ assessment / audit of ___ transporters?
A. Yes, transporters, railways, ________ can be assessed / _______ for levy of penalty, __ any.
82. Is Input Tax ______ available to unregistered declares ____?
A. For dealers below ___ threshold and unregistered, there __ no out put tax _________ nor any input tax _______. However, if you cross ___ threshold, you are liable ___ output taxes, and can _____ input tax credits. If ___ choose not to register (____ after the crossing the _________), you are liable for _______ and you don’t get ___ refunds.
83. Can a registered ______ claim credits for a ________ from an unregistered dealer?
A. No, you cannot _____ credits for purchase from __ unregistered dealer. However, there __ a special “deemed credit” ______ for purchases of “second ____&_____; goods from unregistered dealers, __ you are in the ________ of sale/purchase of “second ____&_____; goods.
