Dear Expert,
Recently the item 'paddy husk' is classified under schedule entry 62 of Schedule-II taxing @ 5%. Previously it was classified under Schedule-I as exempt. the wording was 'de-oiled paddy husk or outer covering of paddy'.
I request to clarify that whether de-oiled paddy husk is different from paddy husk. Will de-oiled paddy husk will remain tax free and only paddy husk will be taxable.
Kindly clarify.
regards,
ganeshan
Clarification Sought on Tax Status of 'De-Oiled Paddy Husk' Under MVAT Section 56, After Schedule Change to 5% Tax. A participant inquired about the tax classification of 'de-oiled paddy husk' after it was moved from Schedule-I, where it was tax-exempt, to Schedule-II, where it is taxed at 5%. The question sought clarification on whether 'de-oiled paddy husk' differs from 'paddy husk' and if only the latter is taxable. A response suggested consulting the MVAT for clarification through the Determination of Disputed Questions process, as provided under Section 56 of the Act, by paying a nominal fee. (AI Summary)
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