SALE OF STEAM

[vishal sharma]

One of my client is having surplus steam generated, which it intends to sell.

Whether VAT will be applicable on it.

Thanks

[Rama Krishana]

I have tried to find specific information about vat on steam. But, could not found. It appears that in many states it is levied at 12.5% as residual entry.

[vishal sharma]

Thanks Mr. Ram Krishana for your opinion.

However by going thru the west bengal schedule of vat rates,I did not find any item named STEAM or having the chemical property like that of STEAM.

Do you mean to say it may be classified under residual category. Like in West Bengal there are schedules notified, and item falling under that particular schedule will attract rate specified for that particular schedule. However scheule CA is meant for "LIST OF GOODS TAXABLE AT 12.5%", AND description of goods says that "ALL OTHER GOODS NOT SPECIFIED IN SCHEDULE A, B, C OR D'.

Awaiting for your valuable reply

Thanks

Vishal Sharma

AI Summary

VAT applicability on sale of surplus steam depends on classification; unlisted goods may be taxed under residual schedule entry.
Whether the sale of surplus industrial steam is subject to VAT depends on classification: no specific schedule entry for steam was found, and where goods are not expressly listed they may be taxed under a residual schedule described as "all other goods not specified," so steam could be taxable if classified under that residual entry.