Updates

RATE OF TAX ON PVC INSULATED CABLE (1 SQ. MM AND ABOVE IN SINGLE CORE & MULTICORE)

Date: 29^th may 2013

Assessee Submission: The item traded is PVC Insulated Cable (1 sq. MM and above in single core & multicore). After becoming liable to pay VAT, the assessee is charging @12.5% on their sale, while their competitors are charging 5% rate of tax, which in turn affecting their business adversely. Again, counsel in his plea requested to pass an order clarifying position of these PVC insulated cables of various sizes in DVAT Act, 2004

Department Representative(DR): stated the same issue has been already been decided in the case of

M/s Anchor Electricals (P) Ltd. vide order no. 247/CDVAT/2009/11 dated 22.09.2009 and;

M/s Cabcond (India) and 163/R/CDVAT/2007/166 dated 07.11.2007

And “according to section 84(8) If any such question arises from any order already passed under this Act or under the Delhi Sales Tax Act, 1975 (43 of 1975) or the Delhi Sales Tax on Works Contract Act, 1999 (Delhi Act 9 of 1999) or the Delhi Tax on Entry of Motor Vehicles into Local areas Act, 1994 (Delhi Act 4 of 1995), as then in force in Delhi, no such question shall be entertained for determination under this section but such question may be raised in an objection or appeal against such order”. Therefore this question is not entertain able.

Hence, order passed in the above aforesaid mentioned orders shall apply  i.e goods is taxable @ 12.5%. 

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

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