Vat tax on pulses
geeta
(Querist) 26 December 2011
This query is : Resolved
Hi,
I have some clarification in VAT, please clarify,
1. I wanted to know vat rates of pulses, earlier the same was covered in Sl.No.30 of Schedule 3 to VAT Act, i.e. in 5%, and vide notification No.FD 82 CSL 10(II) – (effective for the period 01-04-2010 to 31-03-2011) the same was exempt. However vide Act 12 of 2011, sl.no.30 of Schedule 3 has been removed. The effect is it is no more covering in any of the Schedules to the Act, i.e., it is taxable @ 14%.
Section 4(1)(b) provides in case of declared goods u/s. 14 of the CST Act, the tax would be the maximum rate provided in Section 14 of the CST act i.e.5%.
So whether pulses are chargeable @ 5% now, since the same is declared goods u/s.14 of the CST act.
R K JAIN
(Expert) 27 December 2011
The restriction imposed vide secion 15 that every sales tax law of a state shall, in so far as it imposes or athorises the imposition of a tax on the sale or purrchase of declared goods shall not exceed 5%. So the pulses can not be taxable more than 5% in any condition.
