Goods And Service Tax India

I had written on the above subject on 25th Sep 2007 that a clarification would help in resolving conflicting views being taken by assessing officers in Kerala on the rate of tax for Multi Function Printers capable of printing, copying, scanning, sending fax, etc

The Commissioner of Commercial Taxes, Kerala Sri Paul Antony has in a mail dated 19th October 2007, stated that “We have acted on your representation and have forwarded the list as per attachment to Government for notification of VAT @ 4% w.e.f. 1-4-2007″. However the list has not been notified till now.

The Assam High Court had occasion to decide whether the Assam VAT Act could levy tax on declared goods such as iron and steel used in works contracts at a rate higher than that allowed by Sec 15 of the Central Sales Tax Act, 1956.

The commercial tax authorities of Assam proposed to levy VAT @ 12.50 % on all goods used in works contracts. The Commissioner of Commercial Taxes, Assam clarified that the State can levy tax on works contract by treating the same as distinct species apart from the constituent materials undergoing bodily transfer. This meant that even declared goods would be taxed at 12.50%.