FEEDING BOTTLE - VAT RATE

[SUMEDH AYARE]

FEEDING BOTTLES MADE UP OF POLY CARBONATE AND ITS BAGS ARE MADE UP OF PVC. WHAT SHOULD BE THE RATE OF VAT  &  CST IF SOLD TOGETHER OR SEPARATELY IN MAHARASHTRA OR OTHER STATES.

[YAGAY and SUN]

VAT will be @ 5% (Please refer entry no. 107(6) of schedule C of the Taxable Schedule under MVAT Act).  Under CST Act if sold to registered dealer it will be @ 2% against C form and sale to unregistered delears under CST will attract CST @ 5%.

[SUMEDH AYARE]

WHAT ABOUT BAGS MADE UP OF PVC. BECAUSE ENTRY NO.107(6) COVERS ONLY FEEDING BOTTLE AND NIPPLES.

WHAT SHOULD BE THE RATE OF VAT ON BAGS.  

[YAGAY and SUN]

Since carry bag would be the part and parcle of the feeding bottle and it would not be used elsewhere (being specially designed for feeding bottle), therefore, it may attract the same rate as bottle.  If you are selling it with the bottle and prices of the bottle is included in the assessable/taxable value of the bottle even then it would be taxed at 5%, except in case of sale against C form.

AI Summary

VAT rate for feeding bottles and accessory bags applies at the reduced rate; CST treatment depends on buyer registration status.
Feeding bottles of polycarbonate attract a reduced VAT rate under the taxable schedule entry; carry bags specially designed as part and parcel of the bottle are treated as accessories and taxed at the same VAT rate when sold together or when the bag's price is included in the bottle's assessable value. For inter-state sales, CST depends on buyer registration: sales against a C form receive concessional CST treatment, while sales to unregistered buyers attract the general CST rate.