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UPVAT RATE CHANGE

sachidanand (Executive- Finance & Acctts) (55 Points)

20 February 2010

Hi guys

I am facing problem in understanding the Upvat notification 307. Upvat rate is changed by increase in 1% but by how much from 4 to 5 or 4.5 to 5.5 %. Pls reply soon

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7 Replies

subramanya (Professional) (907 Points)
Replied 20 February 2010

Originally posted by : sachidanand
	Hi guys I am facing problem in understanding the Upvat notification 307. Upvat rate is changed by increase in 1% but by how much from 4 to 5 or 4.5 to 5.5 %. Pls reply soon

The VAT rate change referes to Additional tax, earlier Additional tax on 4% VAT was 0.5% and now it is changed to 1%.

Assume you have purchased Rs. 10,000 worth goods by paying Rs. 400 as Input vat and Rs. 50 (0.5%) as Additional tax. Now this additional tax has been increased to 1% (Rs.100).

If you have still doubt let me know..

Subramanya

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ranvir (accountant) (28 Points)
Replied 20 February 2010

Hi guys I am facing problem in understanding the UPVAT notification 307, UPVAT Rate is changed or not in VAT rate 12.5% + Addl.Tax 1%

vikas jamwal (Sr Executive Accounts ) (37 Points)
Replied 20 February 2010

its increase form 4% to 5%

Pleae sea the notice

Attached File : 6 additional tax 5 percent in up.pdf downloaded: 842 times

CA. Shwetank Vats (Chartered Accountant) (653 Points)
Replied 20 February 2010

Where the rate of tax was @ 4.00% Plus additional tax @ 0.50% as on or before 18th February,2010

the additional tax will be @ 1.00%

so, New rate is 4% + 1% additional tax i.e. 5% instead of 4.5% of Schedule-II items

Govind Sharan FCA (Consultant) (48 Points)
Replied 22 February 2010

It will be 4% plus 1%, not 4.5plus 1%.

govind

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RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 22 February 2010

mr. goving is right

TimTaxMan (CPA) (26 Points)
Replied 23 February 2010

Hello, I am new to Indian taxes. I am understanding the state VAT fairly well. however it is the CST that I am struggling with. I can follow that Notification 307 has increased the Uttar Pradesh Additional VAT Tax from .5% to 1% on Schedule II items that are subject to the regular VAT of 4%.

How does this affect interstate sales for CST? When selling interstate to unregistered dealers is the CST basically the same rates as the VAT? In other words, is the CST also 4% plus 1%?

Thanks in advance for any input!