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Clarification VAT

  • 12th October 2017
  • Posted by: web@taxes
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Clarification VAT 2019
Subject
 1 M/s Sree Padmanabha Enterprices – Rate of tax on brass fittings.
2 products like Vicco Vajradanti (Paste Foam), Vicco Vajradanti Strong, Vicco Vajradanti SF (Sugar Free), Vicco Turmeric Skin Cream, Vicco Turmeric-S Skin Cream (Foam Base), Vicco Turmeric WSO – Skin Cream, Vicco Turmeric Skin Cream (in Oil base) and Vicco Narayani are taxable at the rate of 4% / 5%
 3 Semi-manufactured gold or silver are taxable @ 5%.
 4 Multi-function printer is taxable @ 5% under KVAT Act, 2003.
 5 The service of allotment of time slot by a broadcaster to an advertiser on payment of consideration is not exigible to tax under Sec.6 of the KVAT Act, 2003.
 6 Labour portion of repairs for which invoice is raised separately, will not form part of taxable turnover under KVAT Act,2003
 7 Consideration received for the transfer of land is not amenable to taxation under the Kerala Value Added Tax Act, 2003
8 M/s Asianet Satellite Comminications Ltd. – the service of allotment of time slot by a broadcaster to an advertiser on payment of consideration is not exigible to tax.
9 M/s Kays Enterprises – products like Vicco Vajradanti (Paste Foam), Vicco Vajradanti Strong, Vicco Vajradanti SF (Sugar Free), Vicco Turmeric Skin Cream, Vicco Turmeric-S Skin Cream (Foam Base), Vicco Turmeric WSO – Skin Cream, Vicco Turmeric Skin Cream (in Oil base) and Vicco Narayani are taxable at the rate of 4% /5% as per Sl.No.36(27) of Third Schedule of KVAT Act.
10 M/s Sreerosh Properties (P) Ltd – Immovable property is excluded from the definition of goods, total turnover and turnover.
11 M/s Unipower Systems Ltd. – Clarification regarding works executed under agreement with KSEB

 

Clarification VAT 2018
Subject
 1 M/s Drisya Advertising, Ernakulam – Taxability on rent received for mounting flex boards on hoardings and amount received for undertaking wall paintings on walls taken on lease
 2 M/s Talash Plastopacks, Kannur – Commodities such as plastic tray, plastic containers, plastic box, plastic bowl and plastic lid are taxable @ 12.5% I 13.5% I 14.5%, as the case may be.
 3 M/s Anna Ayurvedics, Punalur – The products “Anna Vita” and “Anna Tone” are taxable @ 12.5%  / 13.5% / 14.5%.
4 KVAT Act, 2003 – Revision U/s 94 (7) – Rate of tax of the commodities such as plastic tray, plastic containers, plastic box, plastic bowl and plastic lid
5 KVAT Act, 2003 – Suo- motu Revision U/s 94 (7) – Clarification of Tax liability on rent received for mounting flex boards on hoardings and amount received for undertaking wall paintings on walls taken on lease.

 

Clarification VAT 2017
Subject
1 KVAT Act, 2003 – Clarification U/s 94 – Rate of tax on Bakery Shortening (Inter Esterified Vegetable Oil)
2 Loading, unloading, stacking and transportation charges will form part of the taxable turnover
3 Used JCB excavator is taxable @ 14.5%
4 Interstate works contract – liability for TDS in case of Manufacture and supply of materials by contractor.
5 Blended Edible Vegetable Oil is taxable @ 5%
6 Clarification U/s 94 – Compounding u/s. 8(c)(i) for financial year 2012-13 – Dealer effecting interstate purchase – eligibility of compounding
7 Clarification U/s 94 – whether recording of audio cassettes on duplicating music system amounts to manufacture
8 Clarification U/s 94 – Rate of tax for hydrogen, carbon monoxide, mixture of carbon monoxide and hydrogen (synthesis gas), steam, nitrogen, oxygen, naphtha & natural gas
9 Clarification U/s 94 – Rate of tax of lamp oil
10 Clarification U/s 94 – Tax liability on rent received for mounting flex boards on hoardings and amount received for undertaking wall paintings on walls taken on lease – Judgment of Hon’ble High Court of Kerala – Clarification order withdrawn
11 Clarification U/s 94 – Rate of tax on Kezrin Soap
12 Red Bull Energy Drink is taxable @ 14.5%
13 Applicability of tax on MRP
14 Applicability of reverse tax on purchase returns
15 Plastic tray, plastic containers, plastic box, plastic bowl and plastic lid are taxable @ 5%
16 maize poha/maize flakes are taxable @ 5%
17 Clarification on interstate sale of rubber procured from agriculturists.
18 Purchase of goods kept out of the GST against C Form – Clarification – Reg
19 KVAT Act, 2003 – Clarification U/s 94 – Import of timber – Floor rate for levying advance tax  – Orders issued.
20 KVAT Act, 2003 – Clarification U/s 94 – Rate of tax of “ISLIM-Proprietary Ayurvedic Health Promoter” – Orders issued.
 21 KVAT Act, 2003 – Clarification U/s 94 – Rate of tax of certain ayurvedic items – Orders issued.
 22 KVAT Act, 2003 – Clarification U/s 94 – Installation and commissioning of Solar power project – inter-state works contract – liability for TDS – Orders issued.
 23 KVAT Act, 2003 – Clarification U/s 94 – Compounding u/s. 8(c)(i) – whether company is at liberty to pay tax at compounded rate in respect of certain branches and pay tax u/s. 6 in respect of certain other branches or Head office – Orders issued.

 

Clarification VAT 2016
Subject
1 Thermocol disposable plate was taxable at RNR prior to 1/4/2015 and 20% from 1/4/2015
2 Ayurvedic products falling under the category of gels, face-washes etc. are taxable @ 14.5% and other Ayurvedic Products @ 5%
3 Transfer of goods among different units of MRCMPU are treated as sale
4 Interlock Mud Blocks are taxable @ 5%
5 All disposable plastic cups and tumblers, Styrofoam (Thermocol) cups and plates are taxable @ 20%, Paper cups are exempted, thick plastic trays used as packing materials for electronic items are taxable @ 5%
6 Burgers, chicken – fried and grilled, cooked rice with gravy, wraps consisting of tortillas and french fries are taxable @ 5%
105 boilers, thermic fluid heaters and hot water generators are taxable @ RNR
106 machine made washing soaps by using coconut oil is taxable @ 1%
107 Rate of tax on tyre re-treading
108 plastic planters – pots for agricultural use is taxable @ 14.5%
109 Waterguard Roofcoat is taxable @ RNR
110 printed photographs in book form is taxable @ 5%
114 Sign boards and name boards made using printed PVC/polyethylene and other plastic sheets is taxable @ 20%
115 Handicrafted furniture is taxable @ RNR
116 PVC Profile Panel is taxable @ 5%
117 UPS manufactured by APC involving the range in size from 200VA rating to 600VA, 650VA, 800VA and 1000VA is taxable @ 14.5% wef 01/04/2014
118 Panasonic BG-BL04DCE-G Multi-purpose Solar LED Light & Mobile Charger and Panasonic Solar LED Home Light System are taxable @ 1%
119 Value of medicines supplied free of cost to patients and employees is not liable to be included in the total and taxable turnover
120 Compounded tax payable by a gold dealer
121 Math lab equipments are exempted
122 Applicability of compounded tax on works contracts for aluminium fabrication of doors, windows, false ceiling etc
123 Turnover relating to market margins received by the participants in the future market would not come under the purview of the taxable turnover.
124 Liability of works contract tax related to manufacturing and interstate sale of laboratory infrastructure and allied accessories.
125 Rate of tax applicable for disposable plastic plates, cups, tumblers, trays, lids, containers
126 Fryums would be taxable @ 5%
127 Rate of compounded tax payable for a metal crusher with jaw size 30” x 4” is Rs. 3.20 lakhs from 2014-15 onwards
128 Applicability of VAT on interstate works contract
129 Plastic scrap is exempted w.e.f 13/11/2016 onwards

 

Clarification VAT 2015
Subject
1 Elastic tapes, webbing tapes and ribbons of narrow woven fabrics are exempted from tax
2 Clarification U/s 94 – Compounded works contractor and the rate of tax on suppressed turnover
2 Products ‘Clohex’ and ‘Clohex Plus’ are taxable @ 5% and product ‘Senquel AD’ is taxable @ 14.5%
3 Scented arecanut is taxable @ 5%
4 Tax liability on Supplying and fixing of auditorium chairs to the theatres – reg.
5 Tax liability on the Design, supply, installation, testing and commissioning of 12MWp capacity grid connected Solar PV Power system
6 Agricultural and municipal waste conversion devices are taxable @ 5%
7 Kera Picker and Wonder Climber are exempted.
8 Nylon Monofilament line is taxable @ 14.5%
9 Taking over the branches of a proprietary concern by a Private Limited Company would be treated as new branches by the Private Limited Company
10 Printed banners, hoardings and leaflets of Poly Vinyl Chloride / Polyethylene and other plastic sheets would be taxable at the rate of 20% wef 1/4/2015
11 Aluminium profiles used for Door Bottom, Door top, Verticals, etc. are taxable @ 5%
12 Joint Venture Company, bunker sale and tax liability
13 Hydroponics Green House for Maize fodder Production is taxable @ 14.5%
14 Brooms, brushes and mops, in the manufacture of which plastic is used in any form, either in the handle or in the portion used for cleaning would be taxable @ 5%
15 all polypropylene ropes other than those sold by Matsyafed, Theeramythri units approved by Government and Fishermen Co-operative Societies would be taxable @ 5%
16 Government works even executed through sub-contractors
17 Silicon Sealant imported and cleared under the HSN 3910.00.90 is taxable @ 5%
18 Tax to be deducted at source by awarder for local works contract
19 Dolomite is taxable @ 5%
20 All electronic toys, all manually operated toys made of plastic and all manually operated toys made of metals with plastic accessories are taxable % 14.5%. All manually operated toys made exclusively of metal are taxable @ 5% w.e.f 1/4/2015
21 The product ‘Appy Fizz’ is taxable @ 20%
Clarification 2014
  Subject
1 commodity SUPERTHERMOLAY3MM is taxable at the rate of 5%
3 GI Galvanised Cable Trays would be taxable at the rate of 5%
4 Full Input Tax Credit can be availed of in respect of goods which are purchased for sale to Central Police Canteen / Subsidiary Canteens
5 Tax liability on purchase and sale of used and new Excavators would be determined as per Section 6(1)(d) of the Kerala Value Added Tax Act, 2003
6 PVC Profile Panel / Sheets would be taxable at the rate of 5%
7 Rubber Speed Hump, Rubber Column Fender and Wall Guard, Reflecting Road Stud, Rubber Wheel Stopper, LED Solar Stud and Traffic Cones made of plastic are taxable @ 5% and Convex Mirror made of polycarbonate, Fibre Glass Mesh, Hand rail and Tactile Indicator @ 14.5%
8 Kitchen rack and kitchen stand made fully of plastic is taxable @ 5%
9 mobile phone batteries sold separately is taxable @ 14.5%
10 Double Horse brand Biriyani Kit is taxable @14.5%
11 600 VA UPS with the name ‘Gold’ and the 2.5KVA UPS with the name ‘Neptune’ manufactured by M/s Whirlpool of India Ltd. are taxable @ 5%
12 concessional rate of tax is not applicable for supplies of furnace oil, diesel oil and lubricants to vessels Sagar Sampada and Sagar Kanya of Shipping Corporation of India
13 VORALAST GE 143 ISOCYANATE is taxable at 5%. (Aminoresins, phenolic resins, polyurethanes in primary forms under any trade/brand name)
14 C3/23413/12/CT dated 28/11/2012 – Clarification on rate of tax of Musli Power X-tra vacated
15 Kanni Pukayila is taxable @14.5%
16 cement paving blocks, designer pavers blocks manufactured using cement, crusher sand, crushed metal, white cement, oxides, chemicals, oil etc. are taxable @ 5%
17 SAS Paper Leaf is taxable @ 5%
18 Fishing tackles and flashing lights used in sports/recreational fishing would be taxable at the rate of 5%
19 cement or concrete frames for doors and windows with and without MS Rod and MS Flat would be taxable @ 14.5%
20 The product fryums would be taxable @ 5%
21 Rate of tax U/s 8 on works contract awarded when the dealer has CST Registration
22 Cool Cane is taxable @ 14.5%

 

Clarification 2013
1 Hook and Loop Tape Fasteners is exempted from Tax
2 Vibrating Sauna Belt is taxable @ 13.5%
3 Maize Poha is taxable at the rate of 14.5% by virtue of Entry 103 of S.R.O No. 82/2006.
4 Burger falls within the meaning of cooked food
5 Taxable turnover includes interest paid on capital fund used to acquire capital machinery, excludes wages paid to managing partner, value of depreciation should not be deducted
6 Manually operated Domestic Grinding Machine is taxable at the rate of 5%
7 Toy Baby Chairs, Toy Baby Sets, Toy Baby Rockers/Riders having other descriptions such as Learners Toy Baby Chair or Baby Joy Ride is taxable at 14.5%
8 Automatic Coir Spinning Machine, Coir Fiber Extraction Machine, Coir Fiber Cleaning/Willowing Machine and Motorised Traditional Coir Spinning Ratt is taxable @ 14.5%
9 Sale of rubber to an industrial unit situated in a Special Economic Zone outside the State of Kerala and eligibility to set-off the input tax paid and eligibility to get refund
10 Gram flour and Peas flour is taxable @ 5% and peas dhall @ 1%
11 Vest-type plastic carry bags, including that of polypropylene is taxable @ 20%
12 Margarine Assessments – Judgment of the Hon’ble High Court of Kerala in OT. Rev. No. 24 of 2010 dtd. 8/6/2010 should be relied upon
13 Works Contract – No tax under Section 8 can be levied on a work on which no tax is payable under Section 6.
14 commodity Manikins used for demonstrational purposes in medical education is exempted from Value Added Tax
15 Inter-state sale of Natural Rubber – Exemption from payment of CST in the light of S.R.O.804/2008 & S.R.O. 753/2011 – implication of tax U/s 6(2)- clarified
16 Works contracts involving transfer in the form of goods alone is not eligible for compounding
17 Rate of tax of Margarine – Clarification order withdrawn as it is not maintainable U/s 94(4) of the Act since the Hon’ble High Court of Kerala has already rendered judgment on the subject matter
Clarification 2012
1 Rate of tax of Multimedia Speaker, Scanner, MP3 Player, Web Camera, Sound Card and DVD Writer
2 M-Sand obtained as a bye – product on shaping the granite metals produced in a compounded crusher unit by using a separate machine installed is exempted or not U/s 8(b)
3 Rate of tax of Thermistors and Thermostats
4 Rate of tax of Plastic Sewage Water Storage Tank bearing HSN 3925.10.00
5 Rate of tax of four Prong Set and Drain Bag
6 Rate of Extraneal Peritoneal Dialysis Solution
7 Fumigation services and tax liability under the KVAT Act
8 Rate of tax of rough cast iron articles
9 ERRATA TO THE CLARIFICATION ORDER No.C3/15106/10/CT DATED 19/4/2011 – works contracts awarded by the Government of Kerala, Kerala Water Authority or Local Authorities
10 Rate of tax of Concrete Cover Blocks
11 Tax liability on clearing and forwarding services
12 Rate of tax of Cement paving blocks, Cement tiles and Cobbles
13 Eligibility to pay tax at compounded rates as provided in sub-clause (i) of clause (c) of section 8 of the KVAT Act, 2003
14 Whether VAT payable on compounding basis on bakery products and cooked food
15 Interstate works contract and liability to deduct tax at source
16 paper tubes once used is taxable @ 4% by virtue of Entry 96(1) of the Third Schedule
17 Rate of tax on Machinery spares scrap, Aircraft spares scrap, Aluminium scrap, Electronics scrap, Diesel engine driven generator scrap and petrol engine trolley scrap
19 Rate of tax on Banarice which is a mixture of banana powder and rice powder would be taxable at the rate of 12.5% (13.5% w.e.f. 1/4/2012)
20 Air bubble film rolls are taxable @ 12.5% (13.5% from 01-04-2012)
21 PVC Sheet Laminated is taxable @4% (@5% from 01-04-2012
22 Gas R-22 & Gas R-134A are taxable at 4% (5% w.e.f 1/4/2012)
23 Chemically treated rubber wood panels/boards taxable at the rate of 4% (5% w.e.f. 1/4/2012)
24 The commodity Polyol is taxable at the rate of 4% (5% from 01/04/2012)
25 Mispa Nano, Mispa Plus, Mispa Uriskan – 100, Mispa Uno, Mispa Clog, Mispa-i, BC – 3000 Plus, Biolis 24i and i-Smart 30 Analyzer are taxable at the rate of 4% (5% from 01/04/2012)
26 Commodities LINEA and LinoLED 14W 2FT-Linear LED Battens are taxable @ 5%
27 Commodity Margarine is taxable @ 13.5%
28 Raising invoices or purchase using C-Forms for items supplied as free gifts is punishable
29 Dressed, bleached and worked hair which is not sold as such but which is fixed to a base and used in hair fixing is taxable @ 13.5%
30 PP Fishing Rope is exempted
31 Thotty is exempted
32 Multimedia Speaker / Computer Speaker is taxable @ 5%
33 PVC Door Mat (pieces) and PVC Mats (rolled) taxable @13.5%
34 IIM Kozhikode is liable to take out registration and to make TDS
35 Philips T5 Fluorescent Lamps is taxable @ 13.5%
36 Gas Ovens taxable @ 13.5%, spiral kneading machine, cake kneading machine, bread slicing machine, sheeter machine, moulder machine, vegetable cutting machine, meat mincing machine, sugar powdering machine and flour kneading machine used in bakeries taxable @ 5%
37 Liability to tax on Works Contract for Railways
38 GPS Vehicle Tracker GT06 is taxable @ 13.5%
39 Banana chips and Cassava chips of all kinds, branded or un-branded is taxable @ 5%
40 Outside State dealer carrying on business in Kerala is liable to take registration under KVAT Act 2003
41 Aldrops of all kinds taxable @ 5%
42 Anodizing and powder coating is a composite works contract compoundable U/s 8 of KVAT Act, 2003
43 Home UPS 850 VA, manufactured by M/s American Power Conversion Corporation (APC) with model number BI850SINE is taxable @ 5%
44 Musli Power X-tra is taxable @ 13.5%
45 Betel nut is taxable @ 13.5%
Clarification 2011
1 Application from M/s Prima Plastics Ltd., Muvattupuzha
2 Compounded rate of tax on Works Contract
3 Providing Passive Infrastructure Services to Telecommunication operators and Tax Liability
4 Rate of tax on Biomass Gassifier
5 Rate of tax of Panel and Face Plate
6 Tax Liability
7 Tax liability on Works Contract
8 Rate of Tax applicable to Metal Crushing Unit U/s 8(b)
8 Rate of tax of rough cast iron articles
9 Rate of tax of the commodity Agar – agar powder and strips
10 Rate of tax of Stainless Steel Pipes and Stainless Steel Pipes Fittings
11 Rate of tax of Plastic Handles used in Plastic Bags
12 VAT paid on purchase of DEPB License and Eligibility for set off
13 Whether Form No. 43 can be issued against each Running Bill or only against the Final Bill
14 Applicability of Section 6(1A)(a)
15 Rate of tax on Scrapped Buses sold by KSRTC through auction
17 Tax Liability on Mobilization Advance received by a Contractor and Reduction of Turnover to the extent of tax included in the Turnover
18 Rate of tax on Base Oils
19 Rate of tax of Compact Fluorescent Lamps
19 Supply of Free Goods to Customers, Tax Implication and Billing
20 Rate of tax of Tiger Balm
21 Rate of Compounded Tax on Crusher Machine with Jaw size 55.88 x 22.86 cms
22 KVAT Act, 2003 – Clarification U/s 94 – Eligibility for Registration in the light of Section 16(2) of the Act
23 Is a dealer who started business in 2006- 2007 eligible to pay tax U/s 8(f) during 2008 – 2009
24 Whether the turnover of Bullion can be compounded U/s 8(f) of the KVAT Act
25 Applicability of KVAT and Works Contract Tax on imported equipments
25 The commodity PVC Cards would be taxable at 4%
26 Rate of tax of the commodities Anna Vita and Anna Tone
27 Rate of tax of the commodities Natural Lypa & G-Malt
28 Rate of tax of the commodities Amstrong Lehyam & Dalia Massage Oil
Clarification 2010
1 Rate of tax on Dessicated Coconut Powder
2 Rate of Tax on Flavours and Aromatic Compounds
3 Polypropylene Filament Yarn
4 Contract for construction of Air Defence Ship – Tax liability
5 Rate of Tax of Fiber Glass Molded Doors
6 Rate of Tax – Electric Furnaces/Ovens used for Industrial Heat Treatment, Electric Ovens used for Domestic purposes
7 Issue of Form H in the course of export – Clarification Declined
8 Sale to the Unit Situated in SEZ and Eligibility for Exemption
9 Rate of tax of Equipments for General Physical Exercise
10 Rate of tax of Blood Glucose Monitoring Meter & Blood Glucose Strips
11 Rate of tax of Orthopaedic Implants
12 Rate of tax of PVC Profile Panels / Sheets
13 Ground Handling Charges collected from various Airlines and Turnover U/s 6(1)(c)
14 Rate of tax of Biscuits not registered under the Trade Marks Act
15 Rate of tax of Milk-up
16 Rate of tax of Stainless Steel Fan Hooks
17 Rate of tax of PALMTEC
18 Service Tax and Tax Liability under KVAT Act, 2003
19 Rate of tax on Sale of Used / Scrapped (un-serviceable) Plant and Machinery
20 Rate of tax on Sale of Unusable Lead Battery
21 Tax Liability on Inter-state purchase of Excavators for Own Use
22 Rate of tax of Flexographic Printing Ink
23 Rate of tax of Homeopathic Globules
24 Rate of tax of Biodiesel
25 Form 21J, Purchase Turnover and Extent of Refund
25 Payment of tax U/s 8(e) is an option to be exercised by the dealer
26 Rate of tax on tools working by hand, pneumatic, hydraulic or with self contained electric or non-electric motor
27 the commodity Tamarind Seed Sharps is exempted from tax
28 The commodity N. Butanol or Normal Isobutyl Alcohol is taxable at Revenue Neutral Rate


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