VAT rate undertaking

[Ganeshan Kalyani]

Dear Sir,

A manufacturer is supplying a product to retailer who intern sells it to customer. We are levying VAT @ X rate, and selling to retailer. The retailer is asking in writing from us by way of affidavit / undertaking regarding the applicable rate of tax on the product. I would request to highlight if there is any provision in the VAT Act / Rule regarding any such declaration.

regards,

ganeshan

[YAGAY andSUN]

Dear Ganeshan,

Mentioning of VAT Rate of a product on an Affidavit has no sanctity under the MVAT Act. However, you may get Determination of Disputed Question on payment of fees from the MVAT Department that particular product attracts a particular VAT rate. Please check the Section 56 of the Maharashtra VAT Act.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Determination of Disputed Question under Section 56 permits formal VAT rate ruling; affidavits stating VAT rate have no legal effect. An affidavit stating the VAT rate has no legal sanctity under the MVAT framework; instead, parties should seek a Determination of Disputed Question from the tax department on payment of the prescribed fee to obtain an authoritative VAT rate determination.