Circular 118/2010/TT-BTC: Regulations on deposits for liquefied petroleum gas (LPG) cylinders

Circular 118/2010/TT-BTC: Regulations on deposits for liquefied petroleum gas (LPG) cylinders (Internet image)

Article 7 of Circular 118/2010/TT-BTC stipulates the deposits for LPG cylinders in Vietnam as follows in Vietnam

1. Level of deposit for LPG cylinders in Vietnam

The uniform level of deposit for LPG cylinders (those fully meeting the conditions for filling LPG for circulation which meets Vietnamese standards or national regulations promulgated by competent authorities) applicable to general agents, agents and shops trading in bottled LPG business shops and users shall be set by their owners, which must not exceed 100% of the value of bought LPG cylinders of each type at the time nearest to the depositing time (including valves installed inside LPG cylinders and excluding value-added tax).

For LPG traders that manufacture LPG cylinders themselves for sale, the uniform level of deposit for LPG cylinders must not exceed 100% of the actual ex-warehousing value at the time nearest to the depositing time (excluding value-added tax) plus actual expenses for putting them into use (if any).

2. Collection of deposits for LPG cylinders in Vietnam

- When collecting deposits for LPG cylinders from customers, traders of bottled LPG and LPG cylinders shall issue a receipt according to a form used within the whole distribution network and a written notice of the deposit level to consumers.

A receipt of deposit for LPG cylinders shall be made in one copy, which comprises the counterfoil and stock. LPG traders shall keep the counterfoil and consumers shall keep the stock, which must fully and specifically indicate the name of the LPG cylinder owner with its seal, name of the agent authorized to collect deposits, name of the user, the deposit level under which document of the owner (specifying the deposit amount), time and term of deposit under agreement, type of LPG cylinders for which the deposit is paid (weight, type (steel/mixed/ composite), brand and origin of deposited LPG cylinders), specifying the time and the amount refundable to the customer under agreement when the customer returns cylinders. Intermediary distribution parties such as general agents and agents shall keep copies of the receipt.

- Bottled LPG traders owning LPG cylinders shall notify in writing to units within their distribution network of the level and adjusted level of deposit for LPG cylinders and the refundable amount upon return of LPG cylinders. Such notice must specify the level of deposit and the time for applying this level and the refundable amount corresponding to the cost allocation time under Point 3 of this Article.

- LPG cylinder owners shall collect deposits indicated in receipts of deposit for LPG cylinders from direct users (including also cases of collection through general agents, agents and shops trading in bottled LPG). Apart from deposits collected according to receipts of deposit for LPG cylinders, general agents, agents and shops trading in bottled LPG (other than LPG cylinder owners) may not collect any other amount related to the depositing.

3. Accounting of incomes from deposits in Vietnam

- Traders of bottled LPG and LPG cylinders (LPG cylinder owners) that receive deposits for LPG cylinders from customers shall record those deposit amounts into an account for monitoring deposits.

- Annually when allocating costs under Article 5 of this Circular, they shall transfer deposit amounts to other incomes when determining enterprise income tax-liable incomes. The transfer time corresponds the time of allocating costs for LPG cylinders to LPG trading expenses.

- When arise deposit amounts payable to customers when they return LPG cylinders the costs of which are not fully allocated, units shall deduct such amounts from the deposits paid by customers (before transferring them to other incomes).

More details can be found in Circular 118/2010/TT-BTC, which comes into force from September 24, 2010.

Nguyen Phu

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