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

AI Summary

Manufacturer Seeks Clarity on VAT Rate Assurance; Affidavit Invalid, Use Section 56 for Official Determination Instead. A manufacturer queries whether an affidavit or undertaking can be provided to a retailer regarding the applicable VAT rate on a product. The retailer requests this written assurance. In response, it is clarified that stating the VAT rate on an affidavit holds no legal validity under the Maharashtra VAT Act. However, the manufacturer can seek a Determination of Disputed Question from the MVAT Department, upon payment of a fee, to confirm the applicable VAT rate for the product, as per Section 56 of the Act.