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whether vat is applicable on sale of newspapare

Vinit Agarwal (Audit Accounting and Taxation) (28 Points)

24 February 2010

whether vat is applicable on sale of newspapaer?

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3 Replies

niki_1079 (CA Practice ) (279 Points)
Replied 24 February 2010

No. I think Newspaper and books are exempt from Vat.

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Ashish M (Chartered Accountant) (2731 Points)
Replied 24 February 2010

Entry 92A of List I - Union List reads :

‘Taxes on the sale and purchase of goods other than newspapers,........"

Entry 54 of list II - State List - reads :

‘Tax on sale or purchase of goods other than newspapers except ..........."

Newspaper specifically excluded - It can be seen that ‘newspapers’ are specifically excluded from purview of both Union as well as State list. The obvious reason is that newspapers have a very vital role to play in a democratic society. Freedom of speech and free flow of information is the backbone of democracy and hence newspapers have been excluded from tax. [Otherwise, ‘newspaper’ are ‘goods’, but for the exclusion].