Section 4(4) in The Andhra Pradesh Value Added Tax Act, 2005
(4)Every VAT dealer, who in the course of his business purchases any taxable goods from a person or a dealer not registered as a VAT dealer or from a VAT dealer in circumstances in which no tax is payable by the selling VAT dealer, shall be liable to pay tax at the rate of [five per cent (5%)] [Substituted for 'four per cent (4%)' by Andhra Pradesh Act No. 12 of 2012, w.e.f. 14-9-2011.] on the purchase price of such goods, if after such purchase, the goods are(i)used as inputs for goods which are exempt from tax under the Act, or(ii)used as inputs for goods, which are disposed of otherwise than by way of sale in the State or dispatched outside the State otherwise than by way of sale in the course of inter-State trade and commerce or export out of the territory of India; or(iii)disposed of otherwise than by way of consumption or by way of sale either within the State or in the course of interstate trade or commerce or export out of the territory of India:[Provided that wherever a common input is used to produce goods, the turnover, taxable under this sub-section, shall be the value of the inputs, proportionate to the value of the goods, used or disposed of in the manner as prescribed under this section:Provided further that in respect of purchase of goods specified in Schedules and VI, the VAT dealer shall be liable to pay tax at the rates specified for such goods in the respective Schedules.] [Substituted by Act No. 28 of 2008, w.e.f. 24-9-2008.]
