Chandigarh, May 14 (UNI) The Haryana Cabinet today approved the proposal of the Excise and Taxation Department to reduce the rate of tax on inverters from 12.5 per cent to four per cent.
However, the battery sold with inverters or otherwise, will not be included in the reduction, an official spokesman said.
The manufacturers of the uninterrupted power supply inverters have been making representations since long for inclusion of their product in schedule C so as to bring the same in the list of goods taxable at a rate of four per cent as in the case of UPS.
At present, the inverters are taxable at a rate of 12.5 per cent being unspecified goods. But the UPS being IT product was taxable at a rate of four per cent.
The decision of the government would check diversion of trade as in neighbouring state of Delhi, the inverters were taxable at a rate of four per cent. The cabinet also approved the proposal of the Excise and Taxation Department to tax guar at the last stage of purchase by making it part of Schedule G of Haryana Value Added Tax (HVAT) Act.
It was also decided to amend the Haryana Value Added Tax Rules, 2003 to allow sales and purchases prior to the last purchase without payment of tax.
As a result of this decision, tax on purchase of Guar will be payable by the manufacturers alone and as most of them are exporters also, they would not have to pay tax on that part of value of Guar which relates to Guar gum exported out of India.
The cabinet also gave its ex-post facto approval to the decision of the Government regarding levy of VAT on Tobacco and its products (except Bidi and cut tobacco used in Bidi and Hookah) at a rate of 12.5 percent with effect from April 28.
UNI
However, the battery sold with inverters or otherwise, will not be included in the reduction, an official spokesman said.
The manufacturers of the uninterrupted power supply inverters have been making representations since long for inclusion of their product in schedule C so as to bring the same in the list of goods taxable at a rate of four per cent as in the case of UPS.
At present, the inverters are taxable at a rate of 12.5 per cent being unspecified goods. But the UPS being IT product was taxable at a rate of four per cent.
The decision of the government would check diversion of trade as in neighbouring state of Delhi, the inverters were taxable at a rate of four per cent. The cabinet also approved the proposal of the Excise and Taxation Department to tax guar at the last stage of purchase by making it part of Schedule G of Haryana Value Added Tax (HVAT) Act.
It was also decided to amend the Haryana Value Added Tax Rules, 2003 to allow sales and purchases prior to the last purchase without payment of tax.
As a result of this decision, tax on purchase of Guar will be payable by the manufacturers alone and as most of them are exporters also, they would not have to pay tax on that part of value of Guar which relates to Guar gum exported out of India.
The cabinet also gave its ex-post facto approval to the decision of the Government regarding levy of VAT on Tobacco and its products (except Bidi and cut tobacco used in Bidi and Hookah) at a rate of 12.5 percent with effect from April 28.
UNI
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