Tax reduced on 114 goods following VAT
FOLLOWING THE implementation of value-added tax (VAT) in the state, the Madhya Pradesh government has reduced tax rates on 114 goods covered under the VAT.india Updated: Apr 13, 2006 12:23 IST
FOLLOWING THE implementation of value-added tax (VAT) in the state, the Madhya Pradesh government has reduced tax rates on 114 goods covered under the VAT.
According to an official release, the prices of the 114 listed goods would not increase but come down due to VAT, as the tax burden has been reduced. Besides, the input tax rebate on manufacturing of different goods would also bring down the prices, as their production cost would be reduced, the release mentioned.
The government has claimed that following the introduction of VAT in the state in the current fiscal, the tax rates have come down on several goods from April 1. Besides, the number of tax slabs on goods that attracted 23 per cent to one percent tax under the previous Commercial Taxes Act has been reduced, which in turn would make trading easier.
The goods on which tax rate has been reduced from 13.8 per cent to 12.5 per cent include all type of packed fruit-juices, cold drinks, watches, crockery items, leather goods (except sports material and footwear), musical instruments, timber, sanitary goods, cake, pastry and bakery products, ice-cream & kulfi, carpet, cement, cinematographic equipments, dye &
paints, electronic toys, laminated sheets, lubricants, marble & tiles, moulded furniture, plywood, preserved foodstuff, purses, ladies’ handbags, suitcases, attaches, refrigerators, rubber products, scent-perfumes, hair tonics, shampoo, silk fabric, telephone and its parts, toothpaste, tooth powder, soap, typewriters, calculators, washing machine and vacuum cleaner.
Similarly, goods on which tax rate has come down from 9.2 per cent to 4 per cent include bricks, paper, medicines, tea, dairy products, printing ink, sewing machine, surgical equipments and transformers.
The tax rate on umbrella & its parts, candle stick, cattle feed, caustic soda, chemical fertilisers, cycle, tyre & tube, bicycle accessories, hearing aid, hosiery, hurricane lantern, kerosene lamp, glass chimney, peripherals of information technology, pesticides, mawa (condensed milk), perforated pipe used for drip irrigation, plastic granules, matchbox, farm implements, tractor & trailer has goods on which the tax has been reduced from 4.6 per cent to 4 per cent.
The goods on which the tax rate has come down from 1.15 per cent to 1 per cent include gold and silver ornaments, coins, precious gems like diamond etc. Besides, 53 goods are excluded from VAT list. Sugar was already exempted earlier.
Items under tax slabs
1 12.5 % : Packed fruit-juices, cold drinks, ice-cream & Kulfi, cakes, pastries & bakery products, preserved foodstuff / Perfumes, hair tonics, creams, shampoo, toothpaste, tooth powder, soap/ Silk, fabric, carpet / telephone & parts, watches,
crockery items, leather goods (except sports material and footwear), musical instruments/ timber, moulded furniture, plywood/ sanitary goods, cement, laminated sheets, lubricants, marble & tiles/ purses, ladies’ handbags, suitcases, attaches/ cinematographic equipments, dye & paints, electronic toys, refrigerators, rubber products, typewriters, calculators, washing machine and vacuum cleaner.
2 4 % : bricks, paper, medicines, hearing aid, tea, dairy products/ farm implements, tractor-trailer, cattle feed, chemical fertilisers, perforated pipe for drip irrigation/ tyre & tube, bicycle accessories/ hosiery goods/; matchbox & candles/ IT peripherals/ hurricane lantern, kerosene lamp/ umbrella.
3 1% : Gold & silver ornaments, coins, precious gems like diamond.
4 No Tax : 53 items. Sugar, food grains & pulses, jaggery, branded bread/ de-oiled cakes, fuel wood, charcoal, binaula khalli/ handicrafts.