rate of tax on finish leather

[Jasbir Uppal]

Dated:- 20^th Aug.2012

Dear Sir,

That the purchase and sale of leather we are charging and paid  vat  @ 4% because the entry of leather is covered under section 14 of Central Sales tax act 1956 read as follows:-

14. Certain goods to be of special importance in inter-State trade or commerce-It is hereby declared that the following goods are of special importance in inter-State trade or commerce

(iii) Hides and skins, whether in a raw or dressed state;

But after the order of hon,ble Allahabad high court order in Sales/Trade tax revision no. 1286/2009 decided on 25.07.2012 held that dressed leather is different from finished leather

please clarify the rate of tax now applicable on finished leather after this order.

 

With regard

J.S. Uppal 

[YAGAY andSUN]

It may come under the residuary list and may attract the peak rate of VAT under UPVAT Act,2008.

AI Summary

Tax treatment of finished leather may be residuary, attracting the peak VAT rate under state VAT law. Finished leather, distinguished from dressed leather by recent judicial treatment, may not fall within the specifically listed interstate category for hides and skins and therefore could be placed in the residuary classification under the state VAT statute, thereby attracting the peak VAT rate applicable to residuary goods.