Form No. 13A Filed In Kerala Under K VAT Act

1. 13 A

2. DEALER
SECTION 2(15)
Dealer means any person who carries on the
business of buying, selling, supplying or
distributing goods, executing works contract,
delivering any goods on hire-purchase or on any
system of payment by installments; transferring
the right to use any goods or supplying by way of
or as part of any service, any goods directly or
otherwise, whether for cash or for deferred
payment, or for commission, remuneration or
other valuable consideration not being an
agriculturist and includes :-

3. (a) a casual trader. Section 2(11)
Casual trader” means a person who whether as principal, agent or
in any other capacity, has occasional transactions involving
buying, selling, supplying or distributing goods in the State,
whether for cash or for deferred payment, or for commission,
remuneration, or other valuable consideration.
(b) a commission agent, a broker or a delcredere agent
or an auctioneer or any other mercantile agent, by
whatever name called, of such dealer.
(c) a non-resident dealer or an agent of a non-resident
dealer, or a local branch of a firm or company or
association or body of persons whether incorporated or
not situated outside the State.

4. (d) a person who, whether in the course of business or not, sells
(i) goods produced by him by manufacture or otherwise; or
(ii) trees which grow spontaneously and which are agreed to be
severed before sale or under the contract of sale.
(e) The Central Government or a State Government, which
whether or not in the course of business, buy, sell, supply or
distribute goods, directly or otherwise, for cash or for deferred
payment, or for commission, remuneration or other valuable
consideration, shall be deemed to be a dealer for the purposes of this
Act.
(f) A bank or a financing institution, which, whether in the course of its
business or not sells any gold or other valuable article pledged with it
to secure any loan, for the realization of such loan amount.

5. • Sale of article pledged with the bank is a part of the business
of the bank.( Federal Bank Ltd Vs. State of Kerala)
• Hospital Supplying medicines as a part of treatment is a
dealer.( Malankara orthodox Syrian church Vs. sales tax
officer)
• Supply or distribution of goods need not be in the course of
business. Food corporation of India is a dealer in respect of
distribution of food grains.( Food corporation of India vs. state
of Kerala )
• Collector of customs is liable to pay sales tax in respect of
confiscated and unclaimed goods. The definition of dealer
include the central government and state government
(Collector of customs vs. state of Kerala)
CASE LAW

6. GOODS UNDER VAT
SECTION 2(20)
Goods means all kind of movable property (other than
news paper, actionable claims, stock, share and
securities ) and includes all materials and articles
including the goods involved in the execution of works
contract or those goods to be used in the fitting out
improvement or repair of movable property and all
growing crops or things attached to or forming part of
land which are agreed to be severed before sale or
under the contract of sale .

7. ACTIONABLE CLAIMS
• Claims for arrears of rent.
• A share in partnership.
• Claim for money due under any insurance
policy.
• The right to proceeds of a business.
• Right to get back the purchase-money when
sale is set aside.
• Claim for the return of earnest money.
• Claim for unpaid dowry of a Muslim women.

8. CASE LAW
• Interest of a partner in partnership being movable property
and not being an actionable claim is good (Firm of Sahebram
Surajamal & Ors vs. Purshottamlal Gopikrishnan & Ors).
• Copy right is not an actionable claim ( Savithri vs. Dwarka )
• Livestock is include in the definition of goods. It was held that
animals and birds in captivity are goods. ( Venkitaraman
Hatcheries Pvt.Ltd Vs. Commercial Tax Officer)
• Goods do not include electro magnetic waves or radio
frequencies. Hence transaction by which mobile phone
connections are enjoyed do not include transfer of right to use
goods.( BSNL Vs. Union of India )

9. CAPITAL GOODS UNDER VAT
SECTION 2(10)
Capital goods means plant, machinery, equipment's including
pollution /quality control, lab and cold storage equipment's used in
manufacture, processing, excluding for job works or rendering of
services, packing or storage of goods in the course of business
and delivery vehicles but shall not include such goods and civil
structure as may be notified by Government.
In excise of the powers vested in government the following items
have been kept outside the preview of the term capital goods:
Air conditioners, civil structure & immovable goods or properties,
Vehicle other than goods delivery vehicle, office furniture and
fittings, elevators (lift), computers other than those used for the
purpose in normal business.

10. Turnover means the aggregate amount for which goods are either
bought or sold, supplied or distributed by a dealer, either directly
or through another, on his own account or on account of others,
whether for cash or for deferred payment or for other valuable
consideration.
Total turnover : means the aggregate turnover in all goods of a
dealer at all places of business in the State, whether or not the
whole or any portion of such turnover is liable to tax, including
the turnover of purchase or sale in the course of inter -state trade
or commerce or in the course of export of the goods out of the
territory of India or in the course of import of goods into the
territory of India;
TURNOVER [Section 2(52)]

11. Taxable turnover : means the turnover on which a dealer shall be liable to
pay tax as determined after making such deductions from his total turnover
and in such manner as may be prescribed.
•The turnover in respect of delivery of goods on hire purchase or on any
system of payment by installments shall be the market price of such goods at
the time of delivery.
The turnover in respect of the transfer of the right to use any goods shall be
the aggregate amount received or receivable by the dealer as consideration for
such transfer.
•Where a dealer sells any goods purchased by him at a price lower than that at
which it was purchased and subsequently receives any amount from any
person towards reimbursement of the balance of the price, the amount so
received shall be deemed to be turnover in respect of such goods.

12. INPUT TAX [Section 2(23)]
Tax paid or payable under the act by the VAT dealer to another VAT
dealer on purchase of goods in the course of business.
Input tax includes the VAT on goods purchased for :
a) Resale
b) Raw material
c) Cosumables
d) Packing materials
e) Capital goods
Input tax excludes
a) Purchased from a dealer not registered under VAT .
b) Purchase from outside the state or outside the country.
c) VAT paid on goods not meant for business.

13. INPUT TAX CREDIT (Section 11)
• Tax paid on purchases (input tax) is rebated
against tax payable on sales (output tax).
For example:
A dealer named Y purchase 10% taxable goods
for Rs110 (100-value of goods,10-VAT).
Y sells the goods for Rs120 after adding Rs.20
with value of goods. VAT for this sale is Rs12
(120*10%).
But Net VAT payable by Y is Rs.2 (12-10). This
facility is known as input tax credit.

14. ELIGIBILITY FOR INPUT TAX CREDIT
• Both purchaser and seller must be a vat dealer
• Must be purchase of taxable goods .
• Goods must be purchased in the course of business and used for
business.
PROCEDURE TO CLAIM ITC
Every registered dealer must file the return each month on or before the due
date.
Details of purchase during the month along with:
• Name of the seller
• TIN
• Commodity code
• Purchase invoice with value
• Vat paid and
• Category of goods

15. NO INPUT TAX CREDIT SHALL BE ALLOWED FOR THE PURCHASES:
1)From an un registered dealer or from a dealer not liable to
tax under sec 6 or from a dealer whose registration has been
cancelled.
2)From a dealer paying presumptive tax .
3)From dealer paying compounded tax .
4)Of goods from outside the state or outside the country.
5)Of goods which are used in the manufacture, processing or
packing of goods specified in 1st schedule or 4th schedule.
6)Of goods which are used as fuel, in motor vehicle or vessels.
7)Goods which remain unsold at the time of closure of
business.

16. PART II
FOR MANUFACTURING DEALERS
A – GENERAL PARTICULARS
1) Name of goods manufactured
2) Schedule No./Entry No.
3) HSN Code of finished goods

17. B – MANUFACTURING & TRADING RESULTS
A. Opening Stock:
(1). Raw materials (Direct materials)
(2). Work-in-progress
(3). Consumables(Indirect materials)
(4). Others (Specify)
Total
(5) Cost of goods eligible to claim input tax credit u/s11(13)
(6) Tax effect
(7) Amount of input tax credit eligible under Rule 12
(Determination of input tax credit in respect of opening stock)
Rule 12 :Determination of input tax credit in respect of opening stock

18. Section 11(13)
• input tax credit shall be allowed to a registered
dealer in respect of the tax paid under the Kerala
General Sales Tax Act, 1963 in respect of goods
purchased by him during a period of one year
immediately preceding the date of
commencement of this Act and held as opening
stock on such date and sold or used in the
manufacture of taxable goods or used in the
execution of works contract or for use as
containers or as packing materials for the packing
of taxable goods in the State for sale thereafter,
against the output tax payable by him.

19. B. Purchase/Receipt of Goods:
B1. Purchases Intra –State
(a) From VAT registered dealers other than (b) below
(b) Presumptive / Compounding / KGST Dealer
(c) Others
Total
B2. Purchases Inter-State
(a) Goods liable to Entry Tax and eligible for special rebate
(b) Others
Total
B3. Inter-State Stock Transfer Receipt
From Head Office/Branches
Total
B4. Import From Outside the Country
B5. Others (Specify)
Total Purchases (B1+B2+B3+B4+B5)

20. 1.WORK CONTRACT
Works contract includes any agreement for carrying out for cash or for
deferred payment or other valuable consideration the construction, fitting out,
improvement, repair, manufacture, processing, fabrication, erection,
installation, modification or commissioning of any movable or immovable
Property.
(i) Contractor not being a dealer registered under CST Act and is not an
importer 3% of the whole contract amount.
(ii) Other contractor: 3% of whole contract amount. If any goods to be
appropriated to the work contract are brought from out side the state, the
purchase value of goods (Excluding freight) so brought will be deducted from
the contract amount and the purchase value of such goods will be taxable at
the normal rate applicable to such goods and for the balance tax @3% will be
payable.
(iii) in respect of works contracts awarded by Government shall be four per
cent of the whole contract amount:
SECTION 8 - PAYMENT OF TAX AT COMPOUNDED RATE

21. 2.MECHANIZED METAL CRUSHING UNITS
The quantum of compounded tax depends on the machine size.
• Where the machine size does not exceeds
30.48cm *22.86cm : 40,000 p.a
• Where the machine size exceeds 30.48 cm *22.86cm
but not exceed 40.64 cm *25.40 cm : 160,000.00 p.a
• Where the machine size exceeds
40.64cm *25.40 cm : 320000.00 p.a
• For each cone crusher : 1800,000.00 p.a

22. CONE CRUSHER

23. Compounded tax payable by the units having only single crushing machine
• Where the machine size does not exceeds
30.48cm *22.86cm : 30,000 p.a
• Where the machine size exceeds 30.48 cm *22.86cm
but not exceed 40.64 cm *25.40 cm : 120,000.00 p.a
(There shall be no separate assessment for M-sand produced
in such unit.)

24. 3. COOKED FOOD AND BEVERAGES
The following categories of cooked food dealers are not eligible to opt
for payment of compound tax
1. Any dealer supplying cooked food or beverages to any airline
service company or institution or shipping company for serving in
air craft or ships
2. Star hotels of and above three star, a club or heritage hotel.

25. • Dealers other than bar attached hotels: @0.5% on the turnover of
cooked foods and beverages prepared by him.
• Bar attached hotels (other than star hotel of and above three star, a
club or heritage hotel):125% of the tax paid or payable under the act in
respect of the highest turnover of cooked and beverages prepared by
him for the previous three consecutive years, immediately preceding
the year to which the option relates.
• Bar attached hotels which had paid compounded tax during the
precious year: One hundred and fifteen per cent of the tax paid during
the previous year.
RATE OF COMPOUND TAX

26. 4.Dealers who transfer the right to use video
cassettes or compact disc.
Each main or branch shop situated within the limits of any municipal
corporation or municipality : Rs.1000/-pre annum
Each main or branch shop situated any other place : Rs.500/-per annum
5. Dealers in ornaments or wares or articles of gold,
silver or platinum group metals including diamond.

27. 6.Dealers in poultry meat.
(a) Dealer who bring the goods from outside the state
(b) Quantum of tax: 13.5% of the floor value fixed by the commissioner for
the items from time to time.
Option for payment of compounded tax: Option has to be filed on or
before the 30 the day of April of the year to which the option relates. But
in case of a work contact, if option has been filed in respect of a particular
project and the work remains partly un executed at the end of the year,
the contactor will have to continue under the compounding scheme till the
work is completed.

28. D. Purchase / Receipt Returns
D1. Purchase / Returns Intra-State
(a) To VAT registered Dealers
(b) To Registered dealers other than VAT registered
Dealers (Presumptive / Compounding / KGST
Dealers)
(c) To others
Total
D2. Purchases Returns Inter State
(a). Goods liable to entry tax and eligible for special rebate
(b) To Others
Total
D3. Returns Inter-State Stock Transfer Receipts
To Head Office/ Branches
Total
D4. Purchases Returns of Import from Outside the
Country
D5. Others (Specify)
4
Total Purchases Returns(D1+D2+D3+D4+D5)

29. E Total Net Purchase (B-D)
F. Direct Expenses (freight and coolie charges)
Total
G Sub Total (E+F)
H. Closing stock
1. Raw materials (Direct Materials)
2. Work-in-progress
3. Consumables (Indirect materials)
4. Others (Specify)
Total
I. Cost of Goods Manufactured during the year
[(A+G)-H]
J. Opening Stock of Finished Goods
J1. Finished goods purchased
J2. Branch transfer inwards of finished goods
K. Goods Meant for Sale during the Year
[I+J+J1+J2]
L. Closing Stock of Finished Goods.

30. M. Sale/Issue of Finished Goods
M1. Sales intra-state
Total
M2. Sales Inter-State
(a) Against C. form
(b) Others
Total
M3. Inter-State Stock Transfers
To Head Office / Branches
M4. Exports to Outside the Country
M5. Deemed Export Sales
M6. Consignment Stock transfer outward,
others
(specify):

31. Consignment is the act of consigning, which is placing any material
in the hand of another, but retaining ownership until the goods are
sold or person is transferred.
Features of consignment are:
•The relation between the two parties is that of consignor and consignee and
not that of buyer and seller
•The consignor is entitled to receive all the expenses in connection with
consignment
•The consignee is not responsible for damage of goods during transport or any
other procedure
•Goods are sold at the risk of consignor.
•The profit or loss belongs to consignor only .
CONSIGNMENT

32. A
B
C
D
KL TN
FOR EXAMPLE

33. N. Sales/Issue Returns
N1. Sales Returns - Intra-State
(a) Within time allowed under KVAT
(b) Others
Total
N2 Sales Returns Inter- State
(a) Within the time allowed under CST Act
(b) Others
Total
N3. Return Inter-State Stock Transfers
From Head Office / Branches
Total
N4. Sales return of export to out side the country
N5. Return of deemed export sales
N6. Other sales returns (specify)
Total Sales / Issue returns (N1+N2+N3+N4+N5+N6)
O. Net Sales (M-N)
Gross Profit

34. Thank You
Wisdom come with experience By Rahul Mathew