Value Added Tax

[krishna besta]

 

Can u cleared the Confusion of Backery itmes is there applicable of VAT 5% or Not

Backery items means Burger Bun(Round Bun) is this applicable VAT or not under Andhra pradesh State Act

[Anil Kumar]

Entry 34 of Schedule-I to the APVAT Act exempts from VAT unbranded bread.  Entry 15 of Schedule IV to the said Act provides concessional rate of 5% VAT on branded bread.  The question that arises would be whether the burger bun is a "bread".  Before it is made into a burger and if it sold as a bun, it should be classifiable as "bread" since bun is only a type of bread.  Therefore, if the bun is sold under a brand name it would attract 5% Vat and if it is sold without a brand name it is exempted.

Further, it may be noted that the VAT is payable only by dealers whose annual turnover exceeds Rs.5 Lakh.

[YAGAY and SUN]

I do agree with the reply of Mr. Anil Kumar.

[vittal Rao]

Yes. II do agree with the reply given. The two conditions have to be fulfilled:

1. The turnover is not less than Rs.5.00 Lakhs

2. The Bun/Bread is  branded in the market.

then VAT attracts.

AI Summary

VAT on bread: branding determines concessional rate, and liability requires meeting turnover threshold for dealers.
Entry 34 exempts unbranded bread while Entry 15 applies a concessional 5% VAT to branded bread; a burger bun sold as a standalone item is a type of bread and will attract the concessional rate if branded, but be exempt if unbranded. VAT is payable only by dealers whose annual turnover exceeds Rs.5 lakh, so both branding and the turnover threshold must be met for VAT to apply.