“RATE OF TAX ON STEAM RADIATOR”

Dated: 18^th July 2013

Assessee Submission:  The item traded is Steam Radiator. He further stated that his client is charging 12.5% rate of VAT on the sale of this item whereas others manufactures of the said item are charging 5% rate of VAT on the pretext that the steam radiator is an industrial input, which is indirectly affecting his business.

Department Representative (DR): stated  that  the  item  under consideration i.e. steam radiator is not included in the list of ‘capital goods’ as specified in entry no. 86 of Schedule III appended to the DVAT Act, 2004.

Entry no. 86 of Schedule III –

Capital goods as specified below:

(i) Machinery for tea industry;

(ii) Machinery for food and food processing industries including flour mill;

(iii) Machinery for sugar mill;

(iv) Machinery for beverages, tobacco and tobacco products industries;

(v) Machinery for jute, hemp, mesta textiles industries;

(vi) Machinery for textile industries including hosiery othe than jute,

(vii) Machinery for engineering industries;

(viii) Machinery for paint industry;

(ix) Machinery for furniture and wood products industries;

(x) Machinery for paper and paper products and printing publishing and allied     industries;

(xi) Machinery for leather and fur product industries;

(xii) Rubber, plastic, petroleum and coal product industry machinery;

(xiii) Machinery for chemical and chemical products;

(xiv) Machinery for basic metal and alloys industries;

(xv) Machinery for non-metallic mineral product and industries;

(xvi) Machinery for construction works;

(xvii) Transport equipment and motor parts manufacturing machinery;

(xviii) Mining machinery;

(xix) Packaging machinery;

(xx) Foundry machinery;

(xxi) Agricultural machinery other than those mentioned elsewhere in any other   Schedule;

(xxii) Waste treatment plant and pollution control equipment manufacturing machinery;

(xxiii) Machinery for printing industry;

(xxiv) Machinery for iron and steel industry;

(xxv) Machinery for refrigeration and cooling towers including air-conditioners;

(xxvi) Cooling towers;

(xxvii) Earth moving machinery;

(xxviii) Spare parts, accessories and components of the plant and machinery specified in items (i) to (xxvii).

In DR’s opinion Steam Radiator is an unspecified item falling under section 4 (1) (e) of the Delhi Value Added Tax Act, 2004 and taxable at the rate of 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 

Website: www.caaga.co.in