Printers and Multi Function Printers – VAT rate in Kerala
Multi Function Printers were under HSN Code 8471.60.27 till 31 Dec 2006 and were allotted HSN Code 8443.31 from 1 Jan 2007. Printers are now under HSN Code 8443.32.
The Kerala Finance Act, 2007 had modified the schedule entry relating to IT Products and printers are now a distinct entry under Sl No 69(22)(c) of the Third Schedule to the Kerala Value Added Tax Act, 2003 wef 1st April 2007.
Therefore it was assumed that MFPs under HSN Code 8443.31 would now suffer tax at 12.50%.
The following entry in the Third Schedule to the Kerala Value Added Tax Act, 2003 has now come to my notice.
Entry No - 83(19)
Description - Printing machinery used for printing by means of the printing type, block, plates, cylinders and other printing components; inkjet printing machines, machines or uses ancillary to printing
HSN Code - 8443
According to the rules of interpretation of schedule given in the appendix to the Act, commodities which are given four digit HSN No. shall include all other commodities coming under that heading of the HSN. This has been clarified by the Commissioner of Commercial Taxes in clarification ORDER No.C7.19685/06/CT Dt. 23.06.06 while clarifying that the rate of tax on Multifunction Printers is 4% when they were under HSN Code 8471.60.27.
On the same logic, all goods under HSN Code 8443 will fall under the III Schedule and are taxable @ 4%.
However, a clarification on the above will avoid differences of opinion between various assessment authorities.