Fair market price as per VAT & SD Act 2012.

 

·         The consideration for a supply arrived at on the basis of a normal relation between a buyer and a seller, who are not associated with each other;

·         if it is not possible to arrive at a fair market price as prescribed in clause (a) above, it would then be the consideration of a similar supply made previously under similar circumstances;

·         if it is not possible to arrive at a fair market price by the above means, it may be determined by the Board on the basis of an impersonal average of considerations arrived at in the course of normal business relations among buyers and sellers, who are not associated with one another

 

Who are responsible to deduct VAT at sources?

 

Following entities are eligible to withhold VAT at source.

•       Govt. Authority

•       Semi Govt. Authority

•       Autonomous Body

•       Local Authority

•       NGO registered with NGOAB or Social Welfare Department

•       Govt. Owned Enterprise

•       Bank

•       Non-Banking Financial Institution

•       Insurance Company.

•       Limited Company

•       Education Institution (post-secondary)

 

Use of Business Identification Number ( BIN)

 

1.       All imports & exports (except baggage imports)

2.      Registration of land and building in the name of registered person

3.      Obtaining IRC& ERC

4.      Making any supply to a withholding entity

5.      Participation in tender

6.      Enlistment in any organization

7.      Approval of Bond license

8.      Approval of Bank loan I favor of registered person

9.      Any other determined by the Board

 

VDS List as per VAT & SD Act 2012.

 

S.L	Nature of Supply	VAT Rate	Issue VAT Challan (6.3)	VAT Deducted at Source	NO VDS	Remarks
01	Goods	15%	Issue VAT Challan (6.3)		√	In the case of General supply except Procurement Provider
			No issue VAT 6.3	√ (yes)
		Reduced              Rate	Issue VAT Challan (6.3)	√(Yes)
			No issue VAT 6.3	√ (yes)
		1st Schedule Exemption	Whether  issue VAT 6.3 or not		√
		Exemption by  SRO	Whether  issue VAT 6.3 or not	√ (yes)
02	Service	15%	Issue VAT Challan (6.3)		√	General case
			No issue VAT 6.3	√ (yes)
		43 Services list mentioned  at Table of VDS Rule 3(2)	Whether  issue VAT 6.3 or not	√(Yes)		All services mentioned in the table
		Reduced Rate	No issue VAT 6.3	√ (yes)		General case
			Issue VAT Challan (6.3)	√ (yes)
		1st Schedule Exemption	Whether  issue VAT 6.3 or not		√
		Exemption by  SRO	Whether issue VAT 6.3 or not	√ (yes)
03	Procurement Provider	7.5%	No issue VAT 6.3	√ (yes)
			Issue VAT Challan (6.3)	√ (yes)
		Exemption by SRO	Issue VAT Challan (6.3)		√
			No issue VAT 6.3	√ (yes)
		Goods and Service of 1st Schedule	Whether  issue VAT 6.3 or not		√
		Fossil fuels, Gas, Electricity, Water, Telephone, Mobile	Whether  issue VAT 6.3 or not	√ (yes)
04	Others	Fossil fuels, Gas, Electricity, Water, Telephone, Mobile	Whether  issue VAT 6.3 or not		√
05	Office Rent	15%	No opportunity to issue Challan (6.3)	√ (yes)
06	Export	Zero Rated	Issue VAT 6.3		√
			No issue  VAT 6.3	√ (yes)