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

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.