Sir,

Sub: KVAT Act, 2003- Checking of goods vehicles carrying goods other than by way of sale for job work – Issue of delivery note in Form VAT 505 electronically – Certain instructions – Reg

Ref: (1) Representation dated 10-4-2009, 13-4-2009, 16-4-2009, 20-4-2009 and 24-4-2009 of the Peenya Industries Association, 1st Cross, 1st Stage, Peenya Industrial Estate, Bangalore – 58.

(2) CCT’s proceedings No. KSA.CR.228/08-09, dated 21-3-2009.

On 16-4-2009 and 4-5-2009, the office-bearers of the Peenya Industries Association, Bangalore, met me and discussed regarding their grievances about obtaining of delivery note Form VAT 505 electronically. The association has requested to exempt certain categories of dealers and certain type of transactions from issue of delivery note in Form VAT 505 electronically, as contained in this office proceedings dated 21-3-2009, giving the following reasons.-

(a)	most of the members are not having / computer / internet;
(b)	they are not familiar with the use of internet;
(c)	internet facility is not easily available;
(d)	guarding the secrecy of the user ID and password is not easy and practical;
(e)	broad band connectivity in most of the areas is not satisfactory;
(f)	there is a dearth of manpower with expertise in the computer and internet, etc;
(g)	before the goods are ready for sale, the semi manufactured goods are to be transported for job work like, machining, drilling, grinding, anodizing, powder coating, repair, replacement, weighing, etc;,
(h)	specific exemption for obtaining delivery note in Form VAT 505 electronically may be provided for such dealers for such specific purposes.

2. After having examined the matter, the following instructions are issued for the present:

The dealers who are transporting the semi manufactured goods from their place of business to other place or vice versa within the BBMP limits for the purposes of job work like; machining, drilling, grinding, anodizing, powder coating and the like; repairing and weighing may not be insisted for carrying of delivery note in Form VAT 505 obtained electronically until an alternative mechanism is put in place. However, such dealers shall issue the self-printed delivery note Form VAT 515 as specified in this office Notification No. KSA.CR.327/2005-06, dated 5-1-2006 for transportation of goods for the purposes specified above. The enforcement officers/ check post authorities should insist for the production of documents for transportation of goods as specified above.