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

Clarification Sought on VAT Applicability for Steam Sale; Potential 12.5% Tax Under Residual Category A client intends to sell surplus steam and seeks clarification on whether VAT applies. One participant suggests that in many states, steam might be taxed at 12.5% under a residual entry. Another participant, after reviewing the West Bengal VAT schedule, notes the absence of steam or similar items in the list and questions if it should be classified under the residual category, which taxes unspecified goods at 12.5%. The discussion seeks further clarification on the classification and applicable tax rate for steam.