VAT RATE

[BHUPINDER NARANG]

Existing VAT rate for rubber scrap obtained from the buffing of old tyre would be 5%. Existing VAT rate for sale of old machineries and used motor car would be 12.5%. Please comment.

[Surender Gupta]

Please see the related schedule and rate charts under the relevant VAT act.

AI Summary

VAT rate classification: differential rates apply to rubber scrap and to used machinery and motor vehicles under VAT schedules. The taxable VAT rates indicated are 5% for rubber scrap from buffing old tyres and 12.5% for sales of old machinery and used motor cars; confirmation must be sought from the relevant VAT act schedule and its rate charts to determine precise classification and applicability.