Assam VAT - Rates, Applicability & VAT Rules

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 The same has been replaced by the uniform tax regime known as the Goods and Services Tax (GST), which was an effort of the Modi Government!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

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%

Assam VAT Registration

Dealers can opt for either online or offline VAT registration.

  1. 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.
  2. 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.

FAQs on Assam VAT

  • 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

  • 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 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).

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