Value Added Tax in India
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VAT replaced sales tax
In India, VAT replaced sales tax on 1 April 2005. Of the 21 Indian states, eight did not opt to introduce VAT. Haryana had already adopted it on 1 April 2004. The "empowered committee" of state finance ministers set up by the Government of India provided the basic framework for uniform VAT laws in the states. Due to the federal nature of the Indian constitution, the states do have the power to set their own VAT rate.
The Andhra Pradesh experience
In the Indian state of Andhra Pradesh, the Andhra Pradesh Value Added Tax Act, 2005 came into force on 1 April 2005 and contains six schedules. Schedule I contains goods generally exempted from tax. Schedule II deals with zero rated transactions like exports and Schedule III contains goods taxable at 1%, namely jewellery made from bullion and precious stones. Goods taxable at 4% are listed under Schedule IV. The majority of foodgrains and goods of national importance, like iron and steel, are listed under this head. Schedule V deals with Standard Rate Goods, taxable at 12.5%. All goods that are not listed elsewhere in the Act fall under this head. The VI Schedule contains goods taxed at special rates, such as some liquor and petroleum products.
The Act prescribes threshold limits for VAT registration - dealers with a taxable turnover of over Rs.40.00 lacs, in a tax period of 12 months, are mandatorily registered as VAT dealers. Dealers with a taxable turnover, in a tax period of 12 months.
Answered Questions Archive
Q:What rate is the Laptop battery charged under Delhi VAT?
At what rate is the Laptop battery charged under Delhi VAT?
ANSWER: As the rate has not been separately metioned then it goes to schedule where maximum rate of 12.5% is to be charged.
Q:what tax component of VAT is the cables ?
Need to know under what tax component of VAT is the cables clasified, (eg: we deal with barcode scanner and computer peripherals) hence we need to know whether the Communication cable is 4% or 12.5%. -- Mark (via email)
Answer: Cable comes under 4% VAT in Maharashtra.
See also
- Taxation in India
- Income tax in India
- Permanent account number for Income tax in India
- Income tax in India for Individuals
- Income tax in India for Partnership Firms
- Income tax in India for Corporates
- Income tax in India for Hindu Undivided Families _ HUFs
- TDS Tax Deducted at Source Indian Income Tax
- Advance Income tax in India
- Guide to filing tax returns
- Consumption tax
- Central Excise (India)
- Fringe Benefits Tax (India)
- Gift Tax in India
- Sales Tax
- Entertainment Tax
- Property Tax
- Education Cess
- Service Tax
- Value Added Tax in India
- Wealth tax in India
- Income tax in India
