PACHAI NAYAKI A/C;, VAT + CST

[PACHAI NAYAKI]

DEAR SIR,

WE HAVE SOLD "GEAR BOXES" INTRA STATE TAMILNADU WITH VAT RATE OF 5% FOR THE FY 2016-17. WE HAVE RECEIVED NOTCE FROM TNVAT DEPT STATING THAT THE GEAR BOXES WERE FALL UNDER TAX RATE OF 14.5% AND WE ARE LIABLE TO PAY THE BALANCE TAX IE. 14.5% LESS 5%. IS THI CORRECT ? IF YES PLEASE FURNISH THE NOTIFICATION IF ANY

PACHAI NAYAKI

ACCOUNTS - ETAPL

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

Please inform whether the Revenue indicated the reasons for the levy of VAT @ 14.5% from 5%. If they furnish any tariff head then find the tax rate with reference to the tariff head. If it does not amount to 14.5% then you may filed reply to show cause notice accordingly.

[Ganeshan Kalyani]

In this regard, the schedules of VAT rate to be referred to determine the rate applicable for the product.