The Hindu : Andhra Pradesh News : VAT: 29 commodities to be cheaper

Online edition of India's National Newspaper
Friday, Feb 04, 2005

Andhra Pradesh

Andhra Pradesh

VAT: 29 commodities to be cheaper

By Our Special Correspondent

HYDERABAD, FEB. 3. Twenty-nine commodities, including LPG, kerosene, safety matches, drugs & medicines, lubricants & other petroleum products, readymade garments, papers, toothpastes, cosmetics, shaving products and shampoos will be cheaper in the State from April 1 when the VAT regime comes into force.

The State Government has promulgated an ordinance to introduce VAT from this date with some modifications in the Andhra Pradesh Value Added Sales Tax Act of 2003. It will be replaced by an enactment during the budget session of the Assembly.

Decline in tax

At present, tax is levied on the 29 items up to 20 per cent but this comes down to 4 to 12.5 per cent from the start of the financial year, making them cheaper.

The tax will tumble to 4 per cent from 10- 8 per cent on drugs & medicines, kerosene, paper, bitumen, transmission towers, sewing machines, safety matches, veterinary machines, poultry feed supplement.

The present 16 to 20 per cent tax on toothpastes, cosmetics, shaving products, shampoos, cement, biscuits, chocolates, paints, LPG, all kinds of batteries, lubricants & other petroleum products, refrigerators & air-conditioners, plywood particles and boards will fall to 12.5 per cent.

Announcing these details at a press conference here today, the Commercial Taxes Minister, K. Ramakrishna, said the prices of liquor, petrol and diesel, which were special category items, would remain unchanged under VAT. Tax would go on 47 other items. They were poultry & cattle feed, aqua feed, coarse grains like jowar, maize, raagi, fresh milk, fresh vegetables and fruits, meat, fish, chicken and prawn, handloom goods, unbranded bread, books and journals, sugar, cloth, manually-operated agricultural implements, firewood, charcoal and cotton yarn in yank.

Three rates

N. S. Hariharan, principal secretary, Revenue, and V. Bhaskar, commissioner, Commercial Taxes, explained that the commodities on which different tax rates were collected now, would come under three uniform rates--1 per cent, 4 per cent and 12.5 per cent.

There would be 91 items under 4 per cent.

They said the traders would have to register themselves under the VAT regime. However, those with a turnover below Rs 5 lakhs had been exempted from this requirement.

The turnover limit for registration under VAT was fixed at Rs 40 lakhs. Dealers with Rs 5-40 lakhs turnover would have "simple turnover tax" at 1 per cent.

The Minister said sales tax relief would be given on stocks held as on April 1 based on the actual APGST paid. Input tax credit would be available to all sales.

The VAT provided for a low tax of 4 per cent on works contracts. It would be 1 per cent on apartment builders.

Tax on eatables in hotels would be maintained at reasonable level.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh

News Update

Stories in this Section