Tax rate on Galaxy Tab

[Guest]

Hi,

Please help to understand the taxation on Galaxy Tab, prices of most of the Tab is more then 10K however some vendors are charging 5% on this and some are charging 12.50% in Delhi.

is there any rule wherein it's mentioned that which tax category is applicable on this model.

Thanks,

Pravesh

[YAGAY andSUN]

Dear Pravesh,

Vide Notification No.No.F.3(30)/Fin.(TandE)/2009-10/jsfin/285 Dated: 01.04.2010 the Third Schedule under DVAT Act, 2003 had been amended w.e.f. 01-04-2010 where in Computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof, Mobile phone and all mobile accessories costing upto rupees ten thousand”; would attract VAT @ 5% and above ₹ 10000/- the VAT Rate would be 12.50%.

(d) for the commodity at Sl. No. 41, the following commodity shall besubstituted, namely:-“41 Computers, telephone and parts thereof, teleprinter and wirelessequipment and parts thereof, Mobile phone and all mobile accessories costing upto rupees ten thousand”;

This is for your kind information.

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

 

[Guest]

Thanks a lot

AI Summary

VAT rate on tablets depends on a statutory price threshold; lower rate applies below the threshold, higher rate above. The Third Schedule was amended to treat computers, telephones, parts, mobile phones and mobile accessories as a single commodity entry and to apply a two-tier VAT rate: items priced up to the prescribed threshold attract VAT at 5% and items priced above that threshold attract VAT at 12.5%; suppliers must apply the rate based on the transaction price in accordance with the substituted Schedule.