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Value Added Tax Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM TAX INTERVIEW QUESTIONS VALUE ADDED TAX INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Value Added Tax Interview Questions & Answers - Learning Mode

The Sales Tax is the most important source of revenue of the state governments; every state has their respective Sales Tax Act. The tax rates are also different for respective states. Tax imposed by Central government on sale of goods is called as Sales tax same is called as Value added tax by state government.VAT is additional to the price of goods and passed on to us as buyer (end user). Around 220+ Items are covered with VAT.VAT rates vary based on nature of item and state. Government is planning to merge service tax and sales tax in form of Goods service tax (GST).

Try Value Added Tax Interview Questions & Answers - Exam Mode

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Value Added Tax Interview Questions & Answers - Learning Mode
Try Value Added Tax Interview Questions & Answers - Exam Mode
Question: What is Taxpayer Identification Number (TIN) in Value Added Tax (VAT)?

Answer: The registration number allotted to the dealers is popularly known as TIN i.e. Taxpayer Identification Number. This is a eleven digit number to be quoted in all VAT transactions and correspondence. Source: CoolInterview.com
Question: How will the refund be issued to the exporters (dealers who effect zero rate sale)?

Answer: The dealer who claims refund due to zero rate sales may file an application in Form D1 to the assessing authority along with copies of the purchase invoices of related goods. After verification the assessing authority will issue refund within 90 days from the date of receipt of application in Form D1.

If the excess amount is not refunded within ninety days, whatever may be the reason, the assessing authority will issue refund along with interest at the rate prescribed in the Act. If the d Source: CoolInterview.com
Question: What are the taxes that will be replaced by Value Added Tax (VAT)?

Answer: General Sales Tax, Resale Tax, Surcharge, Additional Sales Tax will be replaced by VAT. The Central Sales Tax Act, 1956 regulating the inter-state transactions of sale and purchase will continue. The Entry Tax on Vehicles and Goods will continue. Source: CoolInterview.com
Question: Whether deferral and waiver will continue?

Answer: Yes, by application for continuance to the Assistant Commissioner concerned, Waiver unit may opt for deferral on application. Source: CoolInterview.com
Question: Will there be Input Tax credit for all Capital Goods?

Answer: Yes, but not for all. Goods notified by the Government are not eligible for Input Tax Credit which are under the negative list and not eligible for the Capital Goods purchased before 1.1.2007. Source: CoolInterview.com
Question: Is there any time-limit to claim the Value Added Tax (VAT) Input Tax Credit?

Answer: Yes. In the case of goods held in Closing stock on 31.12.20015,the time-limit is within 30 days from the date of commencement of the VAT Act, that is, before 1.2.20016.In the case of other goods, it is three years. Source: CoolInterview.com
Question: What are rates of tax under Value Added Tax (VAT)?

Answer: The rates are 1%, 4% and 12.5% on goods eligible for input tax credit. Source: CoolInterview.com
Question: What is Value Added Tax (VAT)Input Tax?

Answer: Value Added Tax (VAT) Input tax is the amount of tax paid on local purchases by a registered dealer to another registered dealer. Source: CoolInterview.com
Question: What are the distinct features under the VAT Act?

Answer: Self-assessment without conditions, One time registration without renewal, non-changing TIN irrespective of change of place of business, non-production of accounts annually for the purpose of assessment, simplified low rate structure, removal of salesmen permit, Input Tax Credit, abolition of additional levies like SC, AST, RST, self-declaration for Industrial Inputs in lieu of Form XVII, Input Tax Credit for Capital goods and opening stock, and refund for exporters (zero rate sellers) are the d Source: CoolInterview.com
Question: Will there be any Random Check of Accounts in case of Value Added Tax (VAT)?

Answer: Yes. The Commissioner of Commercial Taxes, may select assessments not exceeding 20% of total self assessments in the State for detailed check of accounts. The details of such selection shall be placed on notice board in the assessment circle and in the department websites The accounts which are selected for detailed check shall be called and checked by assessing authority. After check, the assessing authority either accept and confirm the self assessment already passed or revise the assessment. Source: CoolInterview.com
Question: What is the Registration fee for Value Added Tax (VAT) Registration?

Answer: The registration fee for Value Added Tax (VAT) is Rs.500/- for principal place of business and Rs.50/- for each additional place of business. (Branches, Godowns). No Security Deposit is necessary for Registration, for dealers. There is no renewal of registration under VAT and it is permanent till it is cancelled by the Department or on stoppage of business when reported by the dealer. No security deposit is necessary for Registration. Source: CoolInterview.com
Question: What is Industrial Value Added Tax (VAT) Input?

Answer: The Industrial Value Added Tax (VAT) Inputs are those goods which are notified by Government and generally go into manufacture of other goods and they are taxable at 4%. Source: CoolInterview.com
Question: What is the Remedy when the Assessing Authority makes provisional order disallowing the Input Tax Credit, on scrutiny of monthly return(s?

Answer: A revision petition may be filed to the Deputy Commissioner concerned, as in the TNGST Act, 1959. Source: CoolInterview.com
Question: How is the Value Added Tax (VAT) Certificate of Registration issued in Tamilnadu?

Answer: The Registered Authority shall acknowledge the receipt of application filed by the dealer. Thereafter, he shall issue certificate of registration within 30 days from the date of receipt of application. In order to speed up the process of registration one can utilise the e-services through web sites of the department www.tnsalestax.com, or www.tnsalestax.gov.in or www.tnvat.gov.in. Source: CoolInterview.com
Question: Who are Dealers under Value Added Tax (VAT)?

Answer: A Dealer is a person who purchases, sells, supplies or distributes the goods in the course of his business for valuable consideration. The Value Added Tax (VAT) Act includes:-

(1) Local authority, Company, Hindu undivided family, Association of persons, Firm

(2) Casual trader, factor, commission agent, delcredere agent, auctioneer, local branch of the firm or company situated outside the State

(3) Person who effects transfer of property in goods other than by way of sale
Source: CoolInterview.com
Question: What is Tax invoice in Value Added Tax (VAT)?

Answer: Tax invoice in Value Added Tax (VAT) is popularly known as bill, which should contain details of sale such as name and address of the purchaser with his TIN, name of goods, quantity of goods sold, its value etc. and tax rate and amount charged separately. This invoice / bill is to be issued in duplicate, the original for purchaser and duplicate to be retained by the selling dealer. Source: CoolInterview.com
Question: Will there be Value Added Tax (VAT) Input Tax Credit for all Purchases?

Answer: No, It will be available only for local purchases from registered dealers, but not on goods taken for self-use/given as samples, gifted, lost in theft, fire, damaged or destroyed/all automobiles including two wheelers, three wheelers and their spare parts for repair or maintenance, air-conditioning units, refrigerators. Source: CoolInterview.com
Question: Can a dealer claim Value Added Tax (VAT) Input Tax Credit for goods sold in Inter-State trade?

Answer: Yes. It can be claimed only when those sales are effected to the Registered dealers of other State against Form C. Source: CoolInterview.com
Question: Whether dealer registered under Tamil Nadu General Sales Tax Act, 1959 has to apply for Tax Identification Number (TIN)?

Answer: All registered dealers under TNGST Act 1959 whose registration is in force shall be provided with TIN automatically without any fee. But after receipt of TIN, the dealers have to file application for obtaining certificate of registration under VAT. Dealers may get TIN, download application and file the details of the application online in the websites ?www.tnsalestax.com, or www.tnsalestax.gov.in or www.tnvat.gov.in to speed up the process of registration. Source: CoolInterview.com
Question: Is there any provision for compounding system of tax under Value Added Tax (VAT)?

Answer: Yes there is. It is available for, on their option:-

1) The dealers who effects second and subsequent sale in the State. The Act provides tax not exceeding 1% as notified by Government on the turnover for the above dealers whose total turnover for a year is less than Rs. 50 lakhs. Government have notified this rate as 0.5%.

2) The Works contractors may opt to pay at compounded rates at 2% (civil), 4% (others) instead of paying tax at the rate prescribed for the goods involved.
< Source: CoolInterview.com

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