Every individual state in India had its own Value Added Tax < collection mechanism in place. The same has been replaced by the uniform tax regime known as the Goods and Services Tax (GST), which was an effort of the Modi Government!
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:
- Aids used by physically challenged persons
- Agricultural implements
- Betel nuts and leaves
- Aquatic/ cattle/poultry feed
- Charcoal
- Journals/books
- Contraceptives/condoms
- Handlooms fabrics including Gandhi Topi
- National Flag
- Coarse grains
- Clay lamps
- Curd and buttermilk
- Firewood
- Fishnet
- Silk and cotton yarn
- Fresh flowers/saplings
- Electrical energy
- Aquatic products (not frozen or cured)
- Human blood
- Musical instruments (handmade)
- Paddy
- Wool (raw)
- Semen (including frozen)
- Slate/chalk pencils
- Non-judicial stamp paper
- Cheques
- Green coconut
- Kumkum and alta
- Salt (unprocessed or processed)
- Sugar
- Gamosha
- Cart
- Tobacco
- Bamboo matting
- Textiles fabric
- Water (not distilled, ionic, demineralised water, medicinal and in sealed containers)
- Bread
- Organic manure
- Clay Idols
- Football
- Volleyball
- Audio cassettes (regional language)
- Mekhela chadar
- Sago
- Puffed rice (muri)
- Graph/Laboratory note book
- Wheat
- Pulses and Cereals sold to Sub-Divisional Officers and Deputy Commissioner of FCI, Assam
- Rum sold to Defence Canteens
- Candle
- Paper envelope
- Kerosene lamp
- Mosquito net
- Onion and garlic
- Fresh Turmeric
- Anti-malaria drugs (quinine group, artemether and sulfadoxine group among other either in powder, solution or capsular form)
- Potato
- Suji
- Besan
- Devices related to renewable energy
- Jaggery
- Pencils, erasers and sharpeners
- Fly shuttle loom
- Brass articles
The list of goods which are taxable at 5% under the second schedule, part A are listed below:
- Copyright and replenishment license
- Agricultural implements ( not manually operated or animal driven)
- All kinds of yarn except silk and cotton yarn
- Arecanut powder
- All types of bricks
- Steel, Aluminium and Brass
- Beltings
- Bamboo
- Beedi leaves
- Bone meal
- Cycle rickshaws
- Castings
- Coffee beans
- Bulk drugs
- Cotton waste
- Chemical fertilizers and pesticides
- Insect repellents
- Goods under Section 14 of Central Sales Tax Act, 1956
- Electrodes
- Coir products
- Electrodes
- Fried grams
- Hose pipes
- Incense sticks
- Hosiery goods
- Napa slabs
- Leaf cups and plates
- Plastic footwear
- Industrial cables
- Bamboo pulp
- Minerals and ores
- Safety matches
- Pure silk fabrics
- Printing ink
- Tamarind
- Solvent oils
- Rail coaches
- Kerosene (Public Distribution System)
- Transmission towers
- Skimmed milk powder
- Starch
- Vanaspati
- Umbrella
- All types of spices
- Writing instruments
- Stainless steel sheets
- Lignite
- Plastic granules
- Glass bangles
- Khandsari
- Processed meat
- Knitting wool
- Hand tools
- Sweets
- Tea waste
- Dry fruits
- Baby bottles
- Pure ghee
- Jute
- Transformers
- AAA conductors
- Diagnostic kits
- Sports goods
- Tarpaulin
- Glucose
- Extra-natural alcohol
- Honey
- Coal tar
- Sanitary napkin
- CFL bulb
The list of goods taxable at 5% under the category of IT products under Part B are listed below:
- Electronic calculators
- Permanent magnets
- Word processing machines
- Answering machines
- Computer systems
- IT software
- LCD Panels
- Electrical resistors
- Signal Generators
- Printed Circuits
- Liquid Crystal devices
- Optical fibre cables
- Cathode ray oscilloscopes
- Transmission apparatus
- Switches
- Electronic Integrated Circuits
The list of goods taxable at 5% under the category of industrial inputs and packing materials under Part C
- Vegetable waxes
- Denatured ethyl alcohol
- Glycerol-crude
- Sulphur
- Copper ores and concentrates
- Aluminium ores and concentrates
- Manganese ores
- Lead ores and concentrates
- Liquid glucose
- Tin ores and concentrates
- Tungsten ores and concentrates
- Precious metal ores and concentrates
- Chromium ores and concentrates
- Uranium or thorium ores and concentrates
- Phenols
- Benzole
- Xylole
- Napthalene
- Hydrogen chloride
- Oxides of boron
- Copper sulphate
- Cyanides
- Sheets of polyurethane foam
- Cartons
- 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://www.tax.assam.gov.in/AssamTIMS1/regOption.jsp 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
- What is the framework under which VAT is implemented in Assam?
All VAT related activities come under the ambit of Assam Value Added Tax Act, 2003
- What are the list of good taxable under the fifth schedule?
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 - Which banks have been given permission to provide the e-payment facility?
The State bank of India, Union Bank of India, IDBI, United Bank of India, HDFC Bank and ICICI Bank provide the e-payment facility.
- What are the list of goods taxable under third schedule?
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 - What if a dealer fails to submit his returns on time?
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).
