rate of VAT in DELHI VAT

[Guest]

Dear Sir,

We have import the 'Multimedia Speakers & Bluetooth speakers',then i want to know the applicable delhi vat rate on this if i sale in the delhi.

And also plz give me the supporting document for that.plz give the answer ASAP it is very urgent.

thanks & regards

Vikash gora

[YAGAY andSUN]

Dear Vikas

Please go though the appended Advance Ruling under Section 84 of the DVAT Act, 2004

 

BEFORE Ms. ARCHNA ARORA, COMMISSIONER, VAT : DELHI No.: 118/CDVAT/2006 Date of Order : 10.07.2006 M/s. K.P. Electronics, 591/20A/IE, Nakul Gali, Vishwas Nagar, Shahdara, Delhi-110032

ORDER Present for the Applicant : None Present for the Department : Sh. J.K. Kaushal, DR

The above named applicant has filed this application u/s 84 of the Delhi Value Added Tax Act, 2004 (hereinafter referred to as the “said Act”) and the question put up before this Court for determination under the aforesaid provision of law is as under:- “Rate of VAT on Speaker and its parts”

2. The application for determination has been made in the prescribed format DVAT-42 and the requisite fee of ₹ 500/- paid through Demand Draft No. 113186 dated 3.04.06.

3. The case of the applicant is that he is involved in the trade of Speaker and its parts and having confusion whether speakers and its parts come under the I.T. Products as laid down in Notification No. 3(59)/Finance(T&E)/2005-06 dt. 30.11.05 (Serial No. 10) and has approached this Court for the determination of rate of tax.

4. The DR appearing on behalf of the department has submitted that the aforesaid Notification No. 3(59)/Finance(T&E)/2005-06 dt. 30.11.05 is related only to the Information Technologies Products and the Entry exists in serial No. 10 of the said Notification’s viz “Microphones, multimedia speakers, Headphones, microphones and combined microphones/speaker sets and their parts” is also related to Information Technology as laid down in the Central Excise Tariff Act, 1985 (Central Excise heading No. 8518) and thus the speaker and its parts used in general parlance are not covered under entry No. 41A of Schedule No. III of DVAT Act, 2004. Therefore, it is unclassified goods attracting VAT @ 12.5% u/s 4(1)(e) of the DVAT Act, 2004.

5. I have carefully perused the application filed u/s 84 of the Act and the documents annexed there to and heard the Departmental Representative. I have also gone through the aforesaid notification along with the entry No. 41 A of the DVAT Act. I am of the opinion that the item which is the subject matter of the present application is neither covered by the aforesaid entry nor by the said notification. In fact speaker and its parts are general unspecified goods falling u/s 4(1)(e) of DVAT Act, 2004 and attracting VAT @ 12.5%. It is held and determined accordingly. (Archna Arora) Commissioner, VAT, Delhi

[Ganeshan Kalyani]

The query is clearly answered. In case if the product is not mentioned elsewhere in the schedule entry it will take shelter of residual schedule entry of Delhi Value Added Tax and accordingly taxed at higher rate. you will have to check for the current prevailing tax rate for the residual schedule entry. Thanks.

AI Summary

VAT classification for speakers and parts: treated as residual unspecified goods subject to Delhi residual VAT rate. The Commissioner, by an advance ruling under Section 84 of the DVAT Act, held that multimedia/Bluetooth speakers and their parts are not covered by the IT-products notification or Entry No. 41A of Schedule III and thus constitute general unspecified goods falling under the residual schedule entry, chargeable to VAT under Section 4(1)(e) at the applicable residual Delhi rate.