Value Added Tax, VAT + CST

[krishna besta]

 

Can u cleared the Confusion of Backery itmes is there applicable of VAT 5% or Not

Backery items means Burger Bun(Round Bun) is this applicable VAT or not under Andhra pradesh State Act

Posts / Replies

[Anil Kumar]

Entry 34 of Schedule-I to the APVAT Act exempts from VAT unbranded bread.  Entry 15 of Schedule IV to the said Act provides concessional rate of 5% VAT on branded bread.  The question that arises would be whether the burger bun is a "bread".  Before it is made into a burger and if it sold as a bun, it should be classifiable as "bread" since bun is only a type of bread.  Therefore, if the bun is sold under a brand name it would attract 5% Vat and if it is sold without a brand name it is exempted.

Further, it may be noted that the VAT is payable only by dealers whose annual turnover exceeds Rs.5 Lakh.

[Pradeep Khatri]

I do agree with the reply of Mr. Anil Kumar.

[vittal Rao]

Yes. II do agree with the reply given. The two conditions have to be fulfilled:

1. The turnover is not less than Rs.5.00 Lakhs

2. The Bun/Bread is  branded in the market.

then VAT attracts.