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VAT IN RAJASTHAN

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VAT IN RAJASTHAN

Postby ASHOK GUPTA » Mon Nov 09, 2009 11:20 am

My dear colleagues,

Hello.

My querry is regarding Rajasthan Vat.

One of my client is having a STONE CRUSHER UNIT in Rajasthan in which they aquire Rough Stones from mine holders and Crush them into STONE CHIPS( GITTY) of Various sizes i.e. 10MM,20MM etc.

My querry is regarding the applicable rate of VAT on this Finished Product.

As per Schedule IV Serial No. 177 the applicable rate is 4%, but their CTO is insisting that the VAT will be levied as per Weight.There is a separate list of products for VAT Rates chargeable as per Weight. This product is also appearing in this Weight basis VAT.

PL clarify as to what is the applicable rate for this product?

It is urgent.

Thanks,

CA Ashok Gupta
ASHOK GUPTA
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Re: VAT IN RAJASTHAN

Postby rrc » Thu Nov 12, 2009 12:49 pm

Section 6 of the Rajasthan VAT Act, 2003 relates to levy of tax by weight, volume, measurement or unit on certain goods.

Section 3 specifies the incidence of tax while Section 4 prescribes the rate of tax.

However, according to Section 6(1) "Nothwithstanding anything contained in Sections 3 and 4 the State Govt. may fix the amount of tax payable on the sale or purchase of certain goods or a class of goods ......"

Thus, exercising the powers conferred under Section 6(1) of the RVAT Act, the Govt. has notified certain goods on which tax is to be levied on weight basis (Refer Notification No.F.12(63)/FD/Tax/2005-84 dated 11.9.2006].

If the goods in question finds a mention in the said notification, then the rate in the notification on the basis of weight will apply to the goods in question.
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Re: VAT IN RAJASTHAN

Postby ASHOK GUPTA » Fri Nov 13, 2009 9:56 am

My dear rrc,

thank you very much for the reply.

But my question is that the GRITT OR KANKARI appear at two places, (i) at the VAT on weight basis and (ii) at S.N.177 of Schedule IV. That why there is a confusion as to which rate will apply in case of my client.

Moreover I would like to mention here that there are two types of Gitties- 1. As excavated from the mines in raw form and uneven in size and 2. in case of my client -manufactured in a stone crusher plant.

I would like to add one more thing here that it was a budget highlight of this year that rate of VAT has been reduced on all types of building stones and gritt from 12.5% to 4%.

In the light of the above I will request all the professional brethern to please clarify the matter.

Thanks & regards,

CA ashok gupta
ASHOK GUPTA
Professional eMind !
 
Posts: 25
Joined: Tue Nov 18, 2008 9:47 am

Re: VAT IN RAJASTHAN

Postby rrc » Fri Nov 13, 2009 7:32 pm

Under Section 4(5) of the RVAT Act, the State Govt., has the power to add to or omit from, or modify or amend the Schedules, prospectively or retrospectively, or reduce the rate of tax payable in respect of, any goods and thereupon the Schedule shall be deemed to have been amended accordingly.

I find that the Govt. of Rajasthan in exercise of powers conferred by Section 4(5) has inserted entry No. 177 in Schedule-IV covering "All kinds of building stone, grit and gitti." vide Notification No. F.12(84)FD/Tax/2009-13 dated 8.7.2009. This attracts VAT at 4%. (This is what probably the Finance Minister might have said in his budget speech).

According to you this entry squarely covers the product of your client. Further more this entry being latest (the notification dated 8th July, 2009) it will prevail over the previous Notification No. F.12(63)/FD/Tax/2005-84 dated 11.9.2006 referred to by me in my earlier reply. In other words the notification dated 11.9.2006 would stand impliedly modified vide Notification dated 8.7.2009.

The fact that due to non-amendment of the earlier notification the entry relating to Gitty/ Kankar appears at two places will not make any difference to the position that from 8.7.2009 onwards the item would attract 4% VAT vide entry 177 of Schedule-IV.
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Re: VAT IN RAJASTHAN

Postby ASHOK GUPTA » Sat Nov 14, 2009 9:14 am

My dear rrc,

Thanks again for prompt reply.

1. item 177 has been inserted in SCH IV vide notification no.F.12(84)FD/TAX/2009-13 dated 08.07.09 and the rate of VAT would be 4%.

2.Interestingly other notification no. F.12(84)FD/TAX/2009-18 dated 08.07.09 fixes the rate of VAT of the same item alongwith Bajri etc on PER TON ( i.e. weight basis).

So pl clarify which rate to be adopted in the case of my client who is running a stone crusher unit.

Regards,

CA Ashok Gupta
ASHOK GUPTA
Professional eMind !
 
Posts: 25
Joined: Tue Nov 18, 2008 9:47 am


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