rate of vat on Aluminum Collapsible Tubes

[Ajay Gupta]

what is the vat rate in haryana on empty aluminum collapsible tubes used in packaging in pharma industry for packing ointments,

[YAGAY andSUN]

Aluminium Collapsible Tubes specifically has not been mentioned in the category of industrial inputs and packing material as mentioned in Taxable Schedule C of the HVAT Act. Hence, it may attract, the peak rate of tax which is currently 12.50% + cess @ 5% on tax.

You may get the clarification from the HVAT Department under Section 56(3) of the HVAT Act by filing an application in this regard and submitting the prescribed fees of Rs. 500/-.

However, since the goods are being used in the packing of finished goods, hence, it should attract the concessional rate of Tax which is currently 5% + cess 5% on tax by issuing and collecting the declaration form and certificate in this regard.

[Ajay Gupta]

Thanks for reply. In fact, i have just found out that there are about 15 unit of this type and all are charging 5+5 %. still, how to issue  the declaration form.

[YAGAY andSUN]

You may approach to the HVAT Department through your counsel for issuing of the declaration certificates.

AI Summary

VAT on packaging materials: concessional rate possible with prescribed declaration and department certificate; otherwise peak rate applies. VAT classification of empty aluminium collapsible tubes for pharmaceutical packaging hinges on their treatment as packing material; not being explicitly listed suggests application of the peak VAT rate plus cess, but where used to pack finished pharmaceutical products a concessional VAT rate plus cess may apply if a prescribed declaration form and certificate are issued and collected. A formal departmental clarification can be obtained by filing an application under the statutory clarification procedure on payment of the prescribed fee, and taxpayers should secure declaration certificates or departmental clarification to confirm concessional treatment.