15 October 2009
Dear Sir/Madam, We have purchased processed ready to eat food khakhara from gujarat. This product is vat free in gujarat & it comes under Gruh udyog base. In karnataka is vat applicable for this product? Thank you in Advance. regards, Sridhar Babu.S
I think it would attract VAT @ 12.5% as I could not found that in schedule 1 to 4 and would be taxed as per under Section 4(b).
Purchasing from Gujrat usualy attracts CST and not vat if u r purchasing from Karnataka and CST not charged as the producer is exempted ( I guess )and not the product.
You should check youself the schedules in the link .
http://dpal.kar.nic.in/English%20Act.pdf
you can find the schedules at the bottom page after page 60.