VAT on Atta in West Bengal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2011 Dear Sirs,

kindly let me know whether Atta is taxable or not under West Bengal VAT Act, if yes please mention the rate.

Regards,

Guest

Guest (Expert)

25 February 2011 This seems to be the question bothering some of the states. The question of the implementation of value added tax on these commodities has led to confusion in these states.

B N Mahaveer, president, Karnataka Roller Flour Mills Association (KRFMA) holds that such commodities are finished products are are thus to be taxed under VAT.

He said, “Maida, atta and sooji are not foodgrains but converted products.” KRFMA has conveyed to the empowered committee on VAT that some states have exempted maida, atta and sooji from VAT whereas some states have kept the items under the 4 per cent VAT category.

While West Bengal, Delhi and Goa have a zero per cent VAT rate for maida, atta and sooji, Karnataka, Maharashtra, Punjab, Andhra Pradesh and Bihar have imposed a 4 per cent VAT rate. “Karnataka is waiting for the review meet to take a decision on this,” informed Mahaveer