Taxes levied on sale of discarded polythene

[Guest]

what are the taxes will be levied on sale of discarded (scrap) of black polythene and how these taxes will calculated.

[Surender Gupta]

You need to see the rate of tax from concerned Stat Vat Laws, or contact the local VAT consultant for help. Since if it is not included in any schedule it may be chargeable to tax @12.5%. As per Delhi VAT scrap is included in the 3rd Schedule and chargeable to VAT @5%. But you need to confirm it before applying in your case.

AI Summary

Sales tax treatment of discarded polythene hinges on state VAT classification and whether scrap attracts a scheduled lower rate. Taxes on sale of discarded black polythene are determined by the State VAT classification and schedule inclusion; if not listed it may attract the state's default VAT rate, whereas scheduled scrap entries can prescribe a lower rate. Confirm the applicable rate and calculation method under the concerned State Vat Law or with a local VAT advisor before applying tax.