Regarding UP Vat in Lubricants
Querist :
Anonymous
(Querist) 20 January 2016
This query is : Resolved
Dear Expert,
Greetings!!!!
i have registered my firm for a business of Engine oil (Lubricants) in UP. I have TIN and CST numbers. Now when i enquired about UP vat on lubricants from few Income tax lawyers they told me that Lubricants in UP is in Non Vat category on the other hand few told me and i have also read that there is 21% Vat on the sale of Lubricants. But on various bills of retailers i saw Non Vat Sales invoice written from whom they purchase engine oil.
and now when i contacted again with same Income tax lawyers they told me that if we import that engine oil from other state in UP then VAT is required otherwise to sell inside UP no VAT is required in Lubricants.
kindly provide me a better and vivid answer beco i am totally new and now rely upon ur answers. Hope someone can help me out.
Thanking you in anticipation.
regards
H.M.Patnaik
(Expert) 20 January 2016
As per the state VAT law, VAT is charged on MRP on Petroleum products which is charged by the Oil companies while raising the bill. No further incidence of VAT is there . However, if the product is brought from other state by paying tax, again VAT will be charged on MRP once it it is traded in U.P. .
Querist :
Anonymous
(Querist) 21 January 2016
thank you for swift response Patnaik G.
Please correct me if i misunderstood.
So that means i will have to pay VAT twice while importing from other state and while selling the products to other Dealers and Retailers ( I am the only distributor in my whole district).
