DEAR SIR,
WE HAVE SOLD 'GEAR BOXES' INTRA STATE TAMILNADU WITH VAT RATE OF 5% FOR THE FY 2016-17. WE HAVE RECEIVED NOTCE FROM TNVAT DEPT STATING THAT THE GEAR BOXES WERE FALL UNDER TAX RATE OF 14.5% AND WE ARE LIABLE TO PAY THE BALANCE TAX IE. 14.5% LESS 5%. IS THI CORRECT ? IF YES PLEASE FURNISH THE NOTIFICATION IF ANY
PACHAI NAYAKI
ACCOUNTS - ETAPL
Company Challenges 14.5% VAT on Gearboxes for 2016-17; Seeks Clarification on Correct Rate and Relevant Notifications. A company sold gearboxes within Tamil Nadu at a 5% VAT rate for the fiscal year 2016-17 but received a notice from the TNVAT Department indicating the correct tax rate should be 14.5%. The company sought clarification on whether this assessment was accurate and requested any relevant notifications. One respondent advised checking if the Revenue provided reasons or a tariff head for the increased rate and suggested filing a reply if the rate was incorrect. Another respondent recommended referring to VAT rate schedules to determine the correct rate for the product. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
