Dear Sirs,
I am a consignment agent for a Andhra based compnay dealing with ayurvedic products, two years back
I applied for a VAT ruling of 5 % from 14.5%, ( for all ayurvedic medicine and products the vat rate is only 5%)
till date there is no response from the Sales tax department, If the department denies to give VAT ruling of
5 % what will happen, ( we are paying tax @ 5% for the past two years, earlier for 6 years we paid tax @ 14.5%)
(all our product requesting for 5 % tax is having valid AYUSH DEPARTMENT CERTIFICATES)
kindly reply
Ayurvedic Product Agent Seeks VAT Reduction to 5% Pending Ruling; Faces Potential Higher Tax Liability with Interest A consignment agent for an Andhra-based company dealing with ayurvedic products sought a VAT ruling to reduce the tax rate from 14.5% to 5%, aligning with the rate for ayurvedic products with AYUSH certificates. Despite applying two years ago, there has been no response from the Sales Tax Department. The agent has been paying the reduced 5% rate during this period. A respondent advised that without a specific ruling, the products fall under a residual category, requiring the higher tax rate. If an unfavorable ruling is received, the agent must pay the tax difference with interest. (AI Summary)
TaxTMI 
TaxTMI 
