Assam VAT

Assam VAT Overview:

Each state in India has its own VAT procedures. Assam introduced the Value Added Tax in May 2005. The Assam Value Added Tax Act, 2003 was duly notified on March 15th, 2005 while the Assam Value Added Tax Rules, 2005, was notified on April 26th, 2005. Also, tax on works contract comes within the purview of Assam Value Added Tax Act, 2003. It is important to note that the Assam Value Added Tax Act, 2003 replaces two erstwhile Acts - Assam Taxation (On Luxuries) Act, 1997 and Assam General Sales Tax Act, 1993. Also, dealers with turnover above Rs.1 crore have to get their accounts audited by Chartered Accountants under the Assam Value Added Tax Act, 2003.

According to experts, tax invoices for input tax credit has resulted in better self-compliance by various dealers in the state, thereby boosting the total revenue of the government of Assam. Input tax credit is allowed on capital goods (except those listed in seventh schedule).

Assam VAT Rates:

The tax rate on the purchase and sale of goods are categorised into five schedules. The list of exempted goods under the first schedule are listed below:

  1. Aids used by physically challenged persons
  2. Agricultural implements
  3. Betel nuts and leaves
  4. Aquatic/ cattle/poultry feed
  5. Charcoal
  6. Journals/books
  7. Contraceptives/condoms
  8. Handlooms fabrics including Gandhi Topi
  9. National Flag
  10. Coarse grains
  11. Clay lamps
  12. Curd and buttermilk
  13. Firewood
  14. Fishnet
  15. Silk and cotton yarn
  16. Fresh flowers/saplings
  17. Electrical energy
  18. Aquatic products (not frozen or cured)
  19. Human blood
  20. Musical instruments (handmade)
  21. Paddy
  22. Wool (raw)
  23. Semen (including frozen)
  24. Slate/chalk pencils
  25. Bread
  26. Non-judicial stamp paper
  27. Cheques
  28. Green coconut
  29. Kumkum and alta
  30. Salt (unprocessed or processed)
  31. Sugar
  32. Gamosha
  33. Cart
  34. Tobacco
  35. Bamboo matting
  36. Textiles fabric
  37. Water (not distilled, ionic, demineralised water, medicinal and in sealed containers)
  38. Bread
  39. Organic manure
  40. Clay Idols
  41. Football
  42. Volleyball
  43. Audio cassettes (regional language)
  44. Mekhela chadar
  45. Sago
  46. Puffed rice (muri)
  47. Graph/Laboratory note book
  48. Wheat
  49. Pulses and Cereals sold to Sub-Divisional Officers and Deputy Commissioner of FCI, Assam
  50. Rum sold to Defence Canteens
  51. Candle
  52. Paper envelope
  53. Kerosene lamp
  54. Mosquito net
  55. Onion and garlic
  56. Fresh Turmeric
  57. Anti-malaria drugs (quinine group, artemether and sulfadoxine group among other either in powder, solution or capsular form)
  58. Potato
  59. Suji
  60. Besan
  61. Devices related to renewable energy
  62. Jaggery
  63. Pencils, erasers and sharpeners
  64. Fly shuttle loom
  65. Brass articles

The list of goods which are taxable at 5% under the second schedule, part A are listed below:

  1. Copyright and replenishment license
  2. Agricultural implements ( not manually operated or animal driven)
  3. All kinds of yarn except silk and cotton yarn
  4. Arecanut powder
  5. All types of bricks
  6. Steel, Aluminium and Brass
  7. Beltings
  8. Bamboo
  9. Beedi leaves
  10. Bone meal
  11. Cycle rickshaws
  12. Castings
  13. Coffee beans
  14. Bulk drugs
  15. Cotton waste
  16. Chemical fertilizers and pesticides
  17. Insect repellents
  18. Goods under Section 14 of Central Sales Tax Act, 1956
  19. Electrodes
  20. Coir products
  21. Electrodes
  22. Fried grams
  23. Hose pipes
  24. Incense sticks
  25. Hosiery goods
  26. Napa slabs
  27. Leaf cups and plates
  28. Plastic footwear
  29. Industrial cables
  30. Bamboo pulp
  31. Minerals and ores
  32. Safety matches
  33. Pure silk fabrics
  34. Printing ink
  35. Tamarind
  36. Solvent oils
  37. Rail coaches
  38. Kerosene (Public Distribution System)
  39. Transmission towers
  40. Skimmed milk powder
  41. Starch
  42. Vanaspati
  43. Umbrella
  44. All types of spices
  45. Writing instruments
  46. Stainless steel sheets
  47. Lignite
  48. Plastic granules
  49. Glass bangles
  50. Khandsari
  51. Processed meat
  52. Knitting wool
  53. Hand tools
  54. Sweets
  55. Tea waste
  56. Dry fruits
  57. Baby bottles
  58. Pure ghee
  59. Jute
  60. Transformers
  61. AAA conductors
  62. Diagnostic kits
  63. Sports goods
  64. Tarpaulin
  65. Glucose
  66. Extra-natural alcohol
  67. Honey
  68. Coal tar
  69. Sanitary napkin
  70. CFL bulb

The list of goods taxable at 5% under the category of IT products under Part B are listed below:

  1. Electronic calculators
  2. Permanent magnets
  3. Word processing machines
  4. Answering machines
  5. Computer systems
  6. IT software
  7. LCD Panels
  8. Electrical resistors
  9. Signal Generators
  10. Printed Circuits
  11. Liquid Crystal devices
  12. Optical fibre cables
  13. Cathode ray oscilloscopes
  14. Transmission apparatus
  15. Switches
  16. Electronic Integrated Circuits

The list of goods taxable at 5% under the category of industrial inputs and packing materials under Part C

  1. Vegetable waxes
  2. Denatured ethyl alcohol
  3. Glycerol-crude
  4. Sulphur
  5. Copper ores and concentrates
  6. Aluminium ores and concentrates
  7. Manganese ores
  8. Lead ores and concentrates
  9. Liquid glucose
  10. Tin ores and concentrates
  11. Tungsten ores and concentrates
  12. Precious metal ores and concentrates
  13. Chromium ores and concentrates
  14. Uranium or thorium ores and concentrates
  15. Phenols
  16. Benzole
  17. Xylole
  18. Napthalene
  19. Hydrogen chloride
  20. Oxides of boron
  21. Copper sulphate
  22. Cyanides
  23. Sheets of polyurethane foam
  24. Cartons
  25. Synthetic rubber

The following table shows the list of goods taxable at special rates under third Schedule:

Goods

Tax Rate (paise in the rupee)

Precious stones

1

Gold ornaments

1

Goods (declared) under Section 14 of Central Sales Tax Act, 1956

4

Bullions (except silver bullions)

1

Silver and silver items

1

Platinum

1

The following table shows the list of goods taxable at first point of sale under fourth Schedule:

Goods

Tax Rate (paise in the rupee)

Petroleum coke

5

Petrol

25.75

Crude oil

5

Diesel

16.5

Natural gas

14.5

Molasses

22

Potato

2

Lottery tickets

22

Tea

5

Pulses

1

Bitumen

5

Biscuits

4

Bamboo

5

Kerosene through PDS

2

Furnace oil

5

The following table shows the list of goods taxable under the fifth schedule

Goods

Tax Rate (paise in the rupee)

Works contract

14.5

Goods not covered under the previous four schedules

14.5

Lease transactions

5

The following table shows the percentage of deduction under the sixth schedule

Work contracts

% of deduction as per Section 11( c)

Fabrication of structural works

20%

Civil works such as building construction

25%

Installation of cranes

15%

Installation of air-coolers/air-conditioners

20%

Construction of railway coaches

20%

Polishing and printing

15%

Assam VAT Registration:

Dealers can opt for either online or offline VAT registration. Online registration can be done at http://103.8.248.130/AssamTIMS/newVatRegistration.jsp. Form 2 - Application for registration has to be filled out and submitted under Assam Value Tax Rules, 2005. The forms can be download from the official website of the commercial tax department of Assam.

Assam VAT Forms:

The following table shows the various types of VAT forms

Type of forms

Particulars

Form 1

Certificate to be produced by purchasing oil company

Form 1A

Certificate to be produced by licensee of the bonded warehouse

Form 2

Registration application

Form 3

Certificate of registration

Form 4

General Registration Number (GRN) application

Form 5

Certificate of registration

Form 6

Register of certificate of Registration

Form 7

Refund of Security application

Form 8

Cancellation of registration certificate (application)

Form 9

Information to be submitted by transferee

Form 10

Registration of transporter

Form 11

Certificate of registration for transporter

Form 12

Register of certificate issued to transporters

Form 13

Tax return

Form 14

Annual return of turnover

Form 15

Notice to submit returns

Form 16

Forfeiture and penalty imposition

Form 18

Refund of forfeited amount (application)

Form 20

Notice as per section 36 of Assam VAT 2003

Form 25

Challan notice for penalty/tax

Form 35

Form of return to be submitted by an individual for tax deduction at source

Form 38

Refund voucher

Form 44

Sale book

Form 50

Forwarding note

Form 60

Bill of sale

Form 77

Statement of tax paid for stock (in hand)

Assam VAT Return e-filing and Payment:

Dealers, registered dealers and unregistered dealer can opt for e-filing through a secured facility at Assam TAX website. E-payments can be made at IDBI Assam payment gateway page. Eligible dealers should obtain digital signatures. Dealers can submit online returns sans digital signatures but should send a signed copy to the assessing authority.

Frequently Asked Questions:

  1. What is the framework under which VAT is implemented in Assam?

  2. All VAT related activities come under the ambit of Assam Value Added Tax Act, 2003

  3. What are the list of good taxable under the fifth schedule?

  4. The following table shows the list of goods taxable under the fifth schedule

    Goods

    Tax Rate (paise in the rupee)

    Works contract

    14.5

    Goods not covered under the previous four schedules

    14.5

    Lease transactions

    5

  5. Which banks have been given permission to provide the e-payment facility?

  6. The State bank of India, Union Bank of India, IDBI, United Bank of India, HDFC Bank and ICICI Bank provide the e-payment facility.

  7. What are the list of goods taxable under third schedule?

  8. The following table shows the list of goods taxable at special rates under third Schedule:

    Goods

    Tax Rate (paise in the rupee)

    Precious stones

    1

    Gold ornaments

    1

    Goods (declared) under Section 14 of Central Sales Tax Act, 1956

    4

    Bullions (except silver bullions)

    1

    Silver and silver items

    1

    Platinum

    1

  9. What if a dealer fails to submit his returns on time?

  10. In case any dealer does not furnish his tax return on the due date, the prescribed authority may impose a penalty of Rs.100 (per day) from the day of default (up to Rs.10,000).

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