News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Home  » Business » Household items get 4% VAT

Household items get 4% VAT

By BS Economy Bureau in New Delhi
August 10, 2005 12:26 IST
Get Rediff News in your Inbox:

A number of household items and industrial inputs in Delhi will be taxed at 4 per cent from Wednesday instead of 12.5 per cent earlier. Spare parts and accessories of manually operated or animal driven agricultural implements will now be exempted from value added tax.

The Delhi government on Monday notified a list of items that would be now taxed at 4 per cent or would be exempted from VAT. At a meeting on July 13, the state Cabinet had given its go-ahead for this rate cut.

Apart from accessories of manually operated agricultural implements, the other items which have been exempted include leaf plates and cups, papad and vadi and paper waste.

Accessories of agricultural implements not operated manually, will now attract 4 per cent tax, compared to 12.5 per cent earlier. Other industrial inputs added into the 4 per cent category include additives, salts, stippers, passivations, intermediates and other chemicals used in various types of electroplating like, nickel, zinc, copper, satin nickel, chrome brass, silver, gold and aluminium.

Industrial perfumes and concentrates have also been included in this category.

All textile fabrics and made-ups, not covered by any other entry of any Schedules in the Act would also be taxed at 4 per cent. This comes in the wake of traders evading tax by showing textile made-ups as textiles, which has zero VAT.

Household plastic items such as combs, jugs, soap cases, mugs, looking glasses and photo frames, lunch boxes, bottles, trays, baskets, mats, storage containers including basins, tubs and drums of capacity up to 100 litres will now be taxed at 4 per cent.

Other household items that would also attract 4 per cent include fittings for doors, windows and furniture, nails, screws, chains of all kind, wood, timber, ply board etc.

The state government had earlier said that the rationalised tax rates would provide relief to the common man and to small traders.
Get Rediff News in your Inbox:
BS Economy Bureau in New Delhi
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!