Assam VAT

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 The same has been replaced by the uniform tax regime known as the Goods and Services Tax (GST), which was an effort of the Modi Government!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:

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. Non-judicial stamp paper
26. Cheques
27. Green coconut
28. Kumkum and alta
29. Salt (unprocessed or processed)
30. Sugar
31. Gamosha
32. Cart
33. Tobacco
34. Bamboo matting
35. Textiles fabric
36. Water (not distilled, ionic, demineralised water, medicinal and in sealed containers)
37. Bread
38. Organic manure
39. Clay Idols
40. Football
41. Volleyball
42. Audio cassettes (regional language)
43. Mekhela chadar
44. Sago
45. Puffed rice (muri)
46. Graph/Laboratory note book
47. Wheat
48. Pulses and Cereals sold to Sub-Divisional Officers and Deputy Commissioner of FCI, Assam
49. Rum sold to Defence Canteens
50. Candle
51. Paper envelope
52. Kerosene lamp
53. Mosquito net
54. Onion and garlic
55. Fresh Turmeric
56. Anti-malaria drugs (quinine group, artemether and sulfadoxine group among other either in powder, solution or capsular form)
57. Potato
58. Suji
59. Besan
60. Devices related to renewable energy
61. Jaggery
62. Pencils, erasers and sharpeners
63. Fly shuttle loom
64. 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:

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

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

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

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

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?

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

2. 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

3. 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.

4. 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

5. 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).