Tax on Artisans and Craftsmen

[Guest]

Hi,

If an artisan creates some handicrafts and sells them to a dealer (for resale), is s/he liable for CST(interstate) or VAT(within state)?

In the above case, if the sale is made to the end customer (not for resale) what can be the tax liability?

Thanks

 

[MANDAVILLI RAMAKRISHNA]

this is small question. every person who is selling is a dealer as per VAT Act and to pay tax on goods sold.

but no tax to be paid until the dealer/ seller crosses the limit prescribed 

under the VAT act.  in AP it is 10 lacs.??

VAT has mechanism to get tax on the goods sold at the next point when the previous point no tax is paid.  the second seller has to pay tax and shall not take any tax input. 

So artisans can charge less as they are not charging VAT

[Guest]

Thanks for the response!

Actually, I wanted to understand if the Government is supporting the small craftsmen and artisans through tax benefits. I did the research and it isn't. Though, handicrafts themselves are exempted in many states.

AI Summary

Artisan Handicraft Sales: VAT or CST Liability Depends on Sale Location and Turnover Threshold An artisan selling handicrafts to a dealer for resale may be liable for VAT or CST, depending on whether the sale is within the state or interstate. However, tax is not required until the seller surpasses a certain turnover threshold, which is 10 lakhs in Andhra Pradesh. Artisans can charge less as they often do not charge VAT. Although handicrafts are exempt in many states, the government does not provide specific tax benefits for small craftsmen and artisans.