To,
All the Members,
Dear Sir,
Members are aware that the VAT rate has been increased from 4 to 5% and form 12.5% to 14.5% with effect from 12.07.2011. The relevant G.O. has already been communicated to the members.
For the specific information of the members it is pointed out that entry 67 of part B of I Schedule relates to industrial inputs and on the industrial inputs the rate of tax has increased from 4 to 5%. Entry 67 of part B of I Schedule reads as under.
“Industrial Inputs: Any goods falling under Part – C of First Schedule to the Tamil Nadu Value Added Tax Act, 2006 including consumables, packing materials and labels but excluding. Plant and machinery, ethyl alcohol, absolute alcohol, methyl alcohol, rectified spirit and cement for use in manufacture and assembling, packing or labeling in connection with such manufacture inside the State for manufacture of goods other than those falling under Second Schedule”.
Members are also informed that the fresh notification issued by the Government in notification II in G.O. Ms. No: 77 dated 11.07.2011 provides for levying 5 % tax from 12.07.2011 on the sales to the State and Central Govt. Departments including Indian Railways and departments of other State Governments in Tamil Nadu of any goods specified in the I Schedule (Except Petrol, Diesel and Cement) which are taxable at a rate higher than 5% subject to the condition that the dealer obtains and furnishes a certificate in the specified form. This is in lieu of 4% in force till 11.07.2011.
Thanking you,
Yours Faithfully,
For THE MADRAS ELECTRIC TRADES ASSOCIATION
[SURENDAR VYAS]
Hon. Gen. Secretary.
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