CHAMBER’S SUCCESS IN UTTAR PRADESH
Introduction of Additional Tax and Abolition of Entry Tax on select items
As a result of meetings organized by the Chamber with the Industrial Development Commissioner and Principal Secretary, Commercial Tax, UP and subsequent follow up, the State Government has taken two important decisions impacting industry & trade in the State. These relate to introducing Additional Tax on the taxable turnover of VAT on various items and abolishing Entry Tax on select items. Both the decisions are effective 1 June 2009.
1. Additional Tax
Vide Notification dated 27 May 2009, the State has introduced additional tax:
- whereby every dealer liable to pay tax under the UP VAT Act, 2008 shall be liable to pay in addition to the tax payable under any other provision of the VAT Act, an additional tax on the taxable turnover of sale or purchase of goods or both at such rate not exceeding 5%, as may be specified by the State;
- Amount of additional tax paid shall be eligible for Input Tax Credit.
- Rate of additional tax is as follows:
Description of Goods |
Rate |
Goods described in Schedule - II of the UP VAT Act other than declared goods |
0.5 percent |
Goods described in Schedule – V of the Act |
1 percent |
2. Entry Tax
- Vide Notification dated 29 May 2009, following entries has been omitted from the Notification No. KA.NI.-2-2757/XI-9(1)08-U.P. Act-30-2007-Order-(31)-2008, dated 29 September 2008:
S. No. |
S. No. in Previous Notification |
Particulars |
1. |
2. |
Machinery & Spare parts of Machinery valuing Rs. 10 lakhs or more |
2. |
10. |
Wood and timber of all kinds and of all trees, of whatever species including ballies and bamboos, whether growing or cut or sawn imported from outside India |
3. |
12. |
Clinker |
4. |
15. |
Aluminum & its products excluding aluminum utensils |
5. |
16. |
Cables of all kinds |
6. |
17. |
Laptop, computer systems & peripherals, TV including LCD TV |
7. |
19. |
Marble stones and their tiles |
8. |
20. |
Refrigerators, Air Conditioners & Air Conditioning Plants |
- Vide Notification dated 29 May 2009, following entries has been omitted from the Notification No. KA.NI.-2-2815/XI-9(1)08-U.P. Act-30-2007-Order-(32)-2008, dated 29 September 2008:
S. No. |
S. No. in Previous Notification |
Particulars |
1. |
8. |
Aluminum & its products excluding aluminum utensils |
2. |
9. |
Laptop, computer systems & peripherals, TV including LCD TV |
3. |
10. |
Refrigerators, Air Conditioners & Air Conditioning Plants |
Detailed notifications available on website of the Department of Commercial Tax at www.comtax.up.nic.in .
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