Assam VAT Last Updated : 11 Jul 2020

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 The same has been replaced by the uniform tax regime known as the Goods and Services Tax (GST), which was an effort of the Modi Government!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

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

  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).

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