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Reduction of tax to 4% on branded Bakery products for the period from 01/01/2007 to 07/06/2007 Formation of Special Cell for MoU Projects

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Reduction of tax to 4% on branded Bakery products for the period from 01/01/2007 to 07/06/2007

Rate of tax is reduced to 4% on the sale by any dealer of bakery products including buns, rusks, biscuits and cakes sold with a brand name with effect from 01/01/2007 to 07/06/2007.

Click to view/download Notification

Reduction of tax to 4% on sale to Power Grid Corporation

Rate of tax is reduced to 4% on the sale by any dealer of any goods except petrol, diesel and cement to Tvl. Power Grid Corporation of India Limited, Chennai, for use in transmission of electricity energy in the State of Tamil Nadu, subject to the condition specified in the notification with effect from 27/03/2002.

Click to view/download Notification

The Tamil Nadu Government has promulgated Tamil Nadu VAT Second Amendment Ordinance,2008 making the following amendments to the TNVAT Act,2006.

Summary Assessment of Returns under the TNGST Act,1959 for the Period April 2006- December 2006

Section 87A has been inserted in the TNVAT Act,2006 providing for summary assessment of returns filed by the dealers under the TNGST Act,1959 and AST Act subject to the procedure to be prescribed.

Composition Dealers

Time Limit for exercise of Composition Option

The time limit for exercise of option of composition of tax by retail dealers under section 3(4) of the TNVAT Act,2006 has been specified as 30 days from the commencement of business or before 30th April in the case of a dealer whose turnover is below Rs.50 lakhs per annum in the previous year. The last date for the financial year 2008-09 is 18/07/08

Input tax credit for composition dealers liable to pay VAT on turnover exceeding Rs.50 lakhs during the year

A retail dealer who had exercised the option to pay compounded tax under Section 3(4) shall be required to pay VAT at the rate of tax applicable to the relevant goods on his turnover exceeding Rs.50 lakhs during the course of the year. Such dealers have to intimate the assessing officer within 7 days of the turnover exceeding Rs.50 lakhs and shall be required to pay VAT on the sales turnover exceeding Rs.50 lakhs.

Such dealers shall be eligible to Input Tax Credit on goods in stock that have been purchased within 90 days of the liability to pay VAT.

Once the turnover has crossed Rs.50 lakhs in a year, such dealer would be ineligible to opt for composition of tax for any of the subsequent years.

Filing of Returns

Section 21 has been amended providing for filing of returns by every registered dealer. Prior to this amendment the requirement of filing of return read as applicable only to a dealer liable to pay tax.

Click to download Tamil Nadu VAT (Second Amendment) Ordinance, 2008

VAT on HSD Oil reduced by 2%

Rate of Tax reduced from 23.43% to 21.43% on the sale of High Speed Diesel oil with effect from 06/06/2008.

Click to download Notification G.O.Ms.No. 57 dated 05/06/2008

CST Rate of Tax reduced to 2% with effect from 01/06/2008

The Ministry of Finance has issued necessary Notification on 30/05/08.

We have received several calls/mails requesting confirmation of the reduction of CST rate of tax to 2% with effect from 01/06/2008 as certain press reports suggest that the Notification is withdrawn.

It is only the initial Press Release on reduction of CST to 2% that was withdrawn and reissued and not the notification.

The initial press release made a reference to the efforts to be taken by the Empowered Committee to prevail upon the State Governments to impose VAT on textiles as also to increase the general VAT rate from 4 per cent to 5 per cent within the financial year 2008-09 as per agreement reached earlier.

Reference to the imposition of VAT on Textiles and the increase in the 4% VAT rate of tax to 5% was deleted and the Press Release was reissued.

To the best of the information available with us, the notification reducing the CST Rate to 2% is not withdrawn.

Maharashtra CT Department has issued circular for reduction of CST rate to 2% with effect from 01/06/2008.

Click to download Notification and Circular

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Trade and Industry representatives in VAT Monitoring Committee



 

   

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