Is paying vat twice the law or am i being framed?
raj_55555
(Querist) 03 July 2012
This query is : Resolved
Hi,
I am buying a laptop from Dell and was required to send them the Road Permit (form 50A) for them to be able to ship it to me as I live in West bengal.
When I went to the sales tax office they asked me to pay 4% VAT and 1% entry tax.
I understand the entry tax, my question is:
why am I paying 4 %VAT when I am already paying 5% VAT to dell? Do I need to pay VAT to each state? Seems so unfair, paying VAT on VAT, especially when other states don't have to pay the same.
I ended up paying Rs. 3000 more just because I live in West bengal and not in Delhi.
I will highly appreciate an experts view on this.
R Trivedi
(Expert) 03 July 2012
-- I presume that you paid 4% took form 50 A and gave Rs. 3000/-.
-- But as per your mail since 50 A is required in advance, on what figure sales tax officer calculated Rs. 3000 ?
As per Central Sales Tax rule, you can buy anything from other states subject to full sales tax rate applicable in selling state. The state in which purchaser resides cannot claim any sales tax except the entry tax. The point is mostly our government departments are full of incompetent and corrupt officials. I salute you that you had the courage to go to Sales Tax officer. Now please do the other people a favor, go to this sales tax officer and ask him why he asked for 4% and on what figure he calculated the tax and under which law he asked this money.
raj_55555
(Querist) 05 July 2012
I doubt that he will be answering me again, as it's too difficult to get them to answer any queries in the first place.
He arrived at the figure on the basis of the invoice value Rs. 51k approx (which included the 5% VAT). Added 1% import tax to it.
Added 30% profit amount (Rs 68k approx), I am not sure what profit means in this context. I was charged 4% on that total amount.
Could you be kind enough to tell me whether this amount paid as VAT challan can be recovered somehow if found inappropriate?
raj_55555
(Querist) 05 July 2012
BTW sorry for my late reply, but there was some database issue with the website because of which I was unable to post any message.
Also thanks a lot for your reply Mr. Trivedi, I really appreciate it.
R Trivedi
(Expert) 05 July 2012
You bought the material from Delhi, West Bengal has no jurisdiction to claim any sales tax on a purchase from other states, except Entry Tax !!
Go to commissioner and ask him that your money should be refunded.
raj_55555
(Querist) 05 July 2012
It's not Delhi, I purchased it from Tamil Nadu. But it's the same thing.
I went there yesterday, but to no avail. He first told me that it's the norm. On asking for further details he said he has other works to do and asked me to leave. There wasn't much i could have done any way.
I also asked him under which section was this VAT charged, he was busy with his work.
I don't think I will get a refund, is there any formal way I can get this solved?
VARUN MAHAJAN
(Expert) 06 July 2012
go to the commessioner adm and you can report for the same.
whereas you need not to pay any vat but you are liable to pay the entry tax.
moreover you need not to pay the amount in cash
R Trivedi
(Expert) 07 July 2012
No bloody government official can say that he is busy, go away !! Straight away go to commissioner's office and complaint against that joker !! Under no law he can take sales tax for transaction happened out of WB.
How can you feel so helpless ???? Wake Up man, these officials are supposed to work they are being paid on tax payers money. You should have created a scene ? What are you feeling shy of ??
raj_55555
(Querist) 08 July 2012
I understand what you are saying sir, but it can be awkward for an introvert person like me. I am just more comfortable with a formal way of handling things.
Thanks a lot sir for taking the time to answer to my queries, I really do appreciate your help.
R Trivedi
(Expert) 08 July 2012
You are harming the system. This man will harass someone else in future. I do not care if you appreciate my replies or not, but people of this country would appreciate if you take up the matter and bring it to logical conclusion. We all should not feel shy of officials, they cannot misbehave, they cannot act high handed, they have to act as per law. They have to be very polite with any one approaching them for clarifications.
raj_55555
(Querist) 08 July 2012
I don't know what to say. I will visit the sales tax office once more, that's the least I could do.
I wish there was some process for hearing out grievances of public. I know there are consumer forums and all, but nothing is transparent. I wouldn't have needed to pay the extra amount if the information was readily available in the first place. But you are right, i shouldn't cower like this.
raj_55555
(Querist) 17 July 2012
I did visit the sales tax office today as your words were playing on my conscience. I was told by a retired commissioner (who came there for some personal work) that I am not expected to pay any thing other than the entry tax.
Then I went to the Senior Joint Commissioner, Mr. J. Kayal. He simply shrugged and said that there can't be any refunds made as there is no such provision for unregistered (non-dealers) waybill.
I also sent an email on 7th july to pro.ctax@nic.in.
The reply I got from a Mr. A Bandyopadhyay JCCT/PRO via email.
I will quote him:
"You are to pay entry tax under sec 4 of the Entry Tax Act and you are to furnish security under rule.105 of the VAT"
Mr. Trivedi are you aware of any such law.
A person I met outside the sales tax office (not an official but a regular there) said he knows for sure that I don't have to pay anything other than the entry tax.
Expecting a reply even if you don't have any exact answers.
With Respect,
Raj
R Trivedi
(Expert) 17 July 2012
1. Road Permits are issued to those who have the TIN number, because in many states a passbook is maintained of such Road Permits and a record is kept.
2. You are an individual personal buyer so under which rule you were issued the Road Permit, I do not know.
3. As far as security deposit is concerned that is for the registered dealers only and not for any individual who is not carrying out any commercial activity.
4. yours is a goofed up case by the Sales tax, go to commissioner, even if he is busy in some meeting, and ask him under what law his inspector took the money from you.
Remember one thing, these officers are paid from public money.
raj_55555
(Querist) 19 July 2012
When I went there and asked him about the law, he started shouting and said that "I've already said the money can't be refunded, there's no provision for it". He insulted me in front of 3 other guys, indicating the fact that I will be thrown out if I come back with this query. When I insisted, he asked me to wait outside and that someone will call me. Nobody did for the next 1.5 hours. I give up on both the money and the government.
