Vat Rate changed from 4% to 5% on Declared Goods.

Friends,  Excise and Taxation Department has issued notification Dated 19.04.2011 regarding enhancement of Vat Rate from 4%  to 5% on declared goods.  Notification of the same is given as under.  Increase in vat percentage on declared goods effects overall India.   

Latest Vat on Declared Goods = 5%

HARYANA GOVERNMENT

EXCISE AND TAXATION DEPARTMENT

Notification

The  19 th April , 2011

No. S.O. 40 /H.A.6/2003/S.7/2011. - In exercise of the powers conferred by subclause (ii) of clause (a) of sub-section (1) of section 7 of the Haryana Value Added Tax Act, 2003 (Act 6 of 2003), the Governor of Haryana hereby directs that tax payable by a dealer on sale of ‘declared goods’ specified in section 14 of Central Sales Tax Act, 1956 ( 74 of 1956) shall be calculated at the rate of five per cent with immediate effect. 

       RAMENDRA JAKHU,

          Financial Commissioner and Principal Secretary

to Government, Haryana, Excise and Taxation Department.

CST % on Declared goods proposed to Increase 5%

     In the Budget 2011-2012,  it has been proposed to increase celling rate of CST on declared goods under section 15 from 4% to 5%.   Presently, State Governments can not levy VAT more than 4% on particular declared goods.   Declared goods are those which have been their own importance and have been defined in Clause 74 of the Finance Bill 2011-12 which runs as under :-

Declared Goods/CST

74. "In section 15 of the Central Sales Tax Act, 1956 , in clause (a), for the words "Four per cent.", the words "five per cent." shall be substituted"

The relevant notes on clause 74 runs as under 

"Clause 74 of the bill seeks to amend section 15 of Central Sales Tax Act, 1956, so as to increase the ceiling imposed though the Central Sales Tax on the power of the States to levy Vat on the "declared goods" from 4 per cent to 5 per cent."

View List of Declared Goods/Complete CST Act. (Click Here)