Human Hair/Wigs

[RAHUL MALHOTRA]

Sir,

My client wants to start local trading as well as export of Human Hair/Wigs. I want to know whether it is taxable under delhi value added tax and what are export benefits and duty on the same?

Regards

Rahul

[YAGAY and SUN]

Dear Rahul,

Human hair and wigs would attract 12.50% VAT under DVAT Act, 2003 as it is unclassified item under the tax schedule.

Further, please check on the following link for details.

http://versatilepublishers.com/deter/sumeet.pdf

Further, you may also seek clarification from the DVAT Department under Section 84 of the DVAT Act.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[RAHUL MALHOTRA]

Thanks for ur early reply.. If i will export wigs than what duties i have to pay??

[Mahir S]

Hair wigs falls under chapter subheading no. 67042010 of Customs Tariff Act,1975.

No duty for export of hair wigs.

[YAGAY and SUN]

Dear Rahul,

In addition to reply submit by Mr. Naveed, we do hereby clarify that there would be no VAT/CST chargeable under DVAT Act,2003 in case of export of wigs. You would have to check the export policy in this regard that whether it is free, restricted or prohibited.

At the time of VAT/CST assessment you would have to submit following documents duly certified by your Authorized signatory to the DVAT Authorities to claim the export benefits, viz:-

1. Export Invoice along with Packing list (photocopies).
2. Shipping Bill (Export Promotion Copy) (photocopy).
3. Bill of Lading (photocopy of non negotiable copy).
4. Bank Realization Certificate (photocopy).

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[RAHUL MALHOTRA]

Thanks.

AI Summary

VAT on human hair and wigs: local sales taxable while exports are VAT/CST exempt with required export documentation.
Human hair and wigs sold locally are taxable under the Delhi VAT regime as unclassified goods. Exports of wigs are VAT/CST exempt and not dutiable under the applicable Customs tariff classification, but exporters must verify export policy status. To claim export benefits at assessment, exporters must produce certified export invoice with packing list, shipping bill (export promotion copy), non-negotiable bill of lading copy, and bank realisation certificate to the VAT authorities.