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Subject: Explanation of how to Submit VAT and cut down of VAT from source for those enterprises thatare not related in Taxable product transport and providing taxable services.

It is been stated in ational board of revenue that! those enterprises

that does not suppl" taxable product or provides taxable service and

onl" provides VAT based on place and building rent and also those

entities that does not runs an" such taxable service but have to

impl" b" laws such as VAT registration and submission in root level.

#or solving this t"pe of complexities! $% A&T!'((' rule)*+ has given

the following explanation:

,-. It is being implied that! ET ( taxes are being added for those

places and buildings that have minimum *,, S/uare)ft of spaces being

used for production which is stated VAT relaxation based notices. $ut

those enterprises who don0t provide taxable product or services! onl" provide VAT on house rent! butas the" don0t submit VAT on their normal services the" don0t have VAT registration. In root! the" are

often as1ed to register under VAT act and as1ed to submit documents.

VAT act '((' rule '2 b")rule ' it is stated that! importers3exporters who suppl" taxable product orservice !the" have to be registered under the respective rules. $ut who has ta1en a place or building for

rent is a consumer not a provider. VAT act!'((' !rule ( states that

rule of how to register.. It is stated on b")rule4'5 of that act that!

provider of taxable service or product have to be register0s person who has ta1en rent he is not aprovider but service consumer.

Act *.*4e5 states that!VAT has to be given b" the service consumer!so the service provider should alsogive VAT.

*.The places that onl" give VAT on place and building rent!but does not provide taxable service orsuppl" taxable products! the" don0t have to register under VAT act or provide and store such documents.

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$ut! the" have to give VAT based on VAT'3''**3related commiseration code3,*'' at each tax periodand must submit the Treasur" &haldean form

in the local VAT circle.

,6. Also those enterprises that don0t suppl" taxable products or provide such service but are registeredunder rule '+ a! the" don0t

have to submit VAT and docs. VAT that are being cut on source has to be provided b" supplier not b"the consumer. In real! he is helping to government to earn revenue. This t"pe of VAT should becollected on

time based on '3''**3related commiserate code3,*'' and must submit in treasur" chalan! it is to be saidthat! while submitting VAT with

treasur" chalan it is not necessar" to have VAT registration number in it.