Bhalchandra R (DYM) 30 December 2012

Orissa vat @5%

Respected Sirs,

We are purchasing Hopper assy,Staircase assy,Casing assy, Structural support from our vendor in Orissa who is charging 5% OVAT on it. Same we have to sale to our customer in Orissa. We are selling it as a component of Bag Filter(pollution controll equipment).

1]What rate of Ovat we should charge 13.5% or 5%

2]Is there any notification under Ovat for selling items under Pollution controll equipment

Thanks & Regards,

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2 Replies

V.Devananda Narasimham (Advocate) 30 December 2012

A dealer who sells goods liable to pay tax in the State from where the goods were transfered. Appropriate State tax law is applicable for rate of tax. In order to determine rate of tax, specific schedules prescribed with HSN code based on Central Excise Tarrif Act in all most all State tax laws to avoid disputes. Please consult locally available tax advocate.

R K JAIN (Advocate) 31 December 2012

Items are taxable as per the classification of goods and not as per there use. Since you are purchasing the same goods in Orrisa @ 5% and then selling the same in Orrisa in the same form then tax will be the same.