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 The same has been replaced by the uniform tax regime known as the Goods and Services Tax (GST), which was an effort of the Modi Government!
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).
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:
The list of goods which are taxable at 5% under the second schedule, part A are listed below:
The list of goods taxable at 5% under the category of IT products under Part B are listed below:
The list of goods taxable at 5% under the category of industrial inputs and packing materials under Part C
The following table shows the list of goods taxable at special rates under third Schedule:
Goods | Tax Rate |
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 |
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 |
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% |
Dealers can opt for either online or offline VAT registration.
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) |
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.
All VAT related activities come under the ambit of Assam Value Added Tax Act, 2003
The State bank of India, Union Bank of India, IDBI, United Bank of India, HDFC Bank and ICICI Bank provide the e-payment facility.
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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