Vat on personal gift in west bengal
Sumit
(Querist) 10 January 2012
This query is : Resolved
Dear Sir,
I was sent an item from abroad by a family member as a gift. I paid customs duty in Delhi on arrival. Now i am having to pay VAT @ 17% to bring it to Kolkata with the shipper. Are personal gifts also subject to VAT?, i am not a dealer or reseller, i am a govt. servant. Can i ask for a refund?
Sumit
M.Sheik Mohammed Ali
(Expert) 10 January 2012
yes, its depend upon the worth of the gift, you pay the tax.
R.Ramachandran
(Expert) 10 January 2012
Dear Mr. Sheik,
I am afraid, that you really know the exact provision of WB VAT Act and the Rules thereunder.
If you are aware, can you please indicate under which provision one has to pay VAT in respect of a Gift item received from outside West Bengal.
Deepak Nair
(Expert) 10 January 2012
I think Mr.Devajyoti Barman can guide you better
prabhakar singh
(Expert) 10 January 2012
MR.sheik RIGHTLY CHECKED FOR MISLEADING ANSWER.ONE SHOULD NOT ANSWER ONE KNOWS THE ANSWER.
R.Ramachandran
(Expert) 10 January 2012
Dear Mr. Sumit,
VAT is leviable only when there is any incidence of sales and the sales turnover crosses the threshold prescribed.
In your case, it is only a gift received and there is no incidence of 'sales' and therefore the question of levy of VAT would not at all arise.
Rule 102(5) of the W.B. Value Added Tax Rules, which deals with "Procedure for transport of goods into West Bengal by air courier service under certain situation - must come to your rescue.
Rule 102(5) provides that "where any consignment of goods is imported or brought into West Bengal by a person .... through any air courier service and ... any delivery to any person ... without complying with the requirements of sub-rule (1) of Rule 100 or rule 101, shall be deemed to be a contravention of the provision of Section 73 by such Air Courier Service.
Therefore, we have to see what is contained in Rule 100(1). The said rule provides "Where any consignment of goods is imported or brought into West Bengal by ... any other person on his own account from any place outside West Bengal, .. such person, before taking delivery of such consignment of goods, ..., present before the Sales Tax Officer or Assistant Sales Tax Officer ... a Way Bill in Form No.50 in duplicate, obtainable under Rule 110, 111 or 112. Such person shall also present the air consignment note or any document of like nature in respect of such consignment of goods for countersignature by such Sales Tax Officer or Assistant Sales Tax Officer.
Therefore, you have to talk to the concerned authorities, furnish Form 50 and get the goods cleared as for your personal use (not sales) without payment of any VAT.
As per the existing provisions in the W.B. VAT Act and the Rules, the refund provisions are available only to a Registered Dealer and not even to an unregistered dealer, what to talk about individuals.
It would have been better, if you had talked to any VAT lawyer in your area before clearing the goods. In any case, depending upon the amount involved (i.e. spent by you by way of payment of VAT) you can discuss the matter with some VAT experts in your area and take things forward.
Deepak Nair
(Expert) 11 January 2012
I think it is sufficiently explained by Mr.Ramachandran.
Sumit
(Querist) 12 January 2012
Sir,
When the shipper asked me for Form-50, i visted the sales tax office and asked for the same. I was told to fill form 56 and then they calculated the tax to Rs. 7071/-. I told them that it is a gift from my brother abroad. The international air way bill and customs documents had also clearly written on it that the item was a gift. Inspite of that they caclulated the tax and asked me to deposit it for form-50.
What options do i have now if refund is only meant for registered dealers.
Sumit
R.Ramachandran
(Expert) 12 January 2012
Then you have to write REGISTERED POST to the Commissioner VAT, stating the complete facts, attaching the copies of Airway Bill, tax payment challan etc., and seek refund. Then after one or two months seek information through RTI about the fate of your application for refund. In the meanwhile, did you contact any sales tax / VAT lawyer in your area? If not, why not?
Sumit
(Querist) 12 January 2012
Sir,
I went through this commercial tax experience first time in life on Monday, and received the shipment on Tuesday. I have contacted a lawyer(he is an income tax expert) who has asked me all the documents. The forum has helped me a lot even before a professional could. I'll keep updating, if anybody is interested in seeing the documents i may upload them. Also may i request the forum to direct me to an expert in Kolkata on this.
Thanks
Sumit
Raj Kumar Makkad
(Expert) 14 January 2012
You can upload your documents for our knowledge and further advice.
Sumit
(Querist) 14 January 2012
Sir,
I am attaching the documents for your kind review.
sumit
