abhishreshthaa

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EXEMPTIONS:-

The schedule does specify certain goods attracting nil rates of tax or exempt goods.


Other than those, there is no specific or general exemption, as was the position under the sales tax regime


The government may have a power to notify exemptions and appears to be limited. To illustrate, the following types of sales of purchases, subject to conditions, may be exempt:


• Specified class of sales or purchases for promoting

o The scheme for special economic zones

o 100% export oriented units

o Export

o Interstate trade and commerce

• Tax payable (full or part) on purchases or sales of motor spirits, if tax is paid on previous sale or purchase of the very goods, or inter state transactions between notified oil companies.


The exemptions will not be given or conferred on government and /or diplomatic offices, etc. whenever any specified class or classes of purchasers need to be exempted, in the scheme of VAT, they would be entitled to refund of VAT paid on purchase, subject to fulfillment of the conditions and requirements.


Incase of interstate purchase, the same position would continue. Incase of intrastate purchase, the taxation would be governed by VAT law. The tax, if any, paid by the purchaser would be eligible for input tax credit

 
EXEMPTIONS:-

The schedule does specify certain goods attracting nil rates of tax or exempt goods.


Other than those, there is no specific or general exemption, as was the position under the sales tax regime


The government may have a power to notify exemptions and appears to be limited. To illustrate, the following types of sales of purchases, subject to conditions, may be exempt:


• Specified class of sales or purchases for promoting

o The scheme for special economic zones

o 100% export oriented units

o Export

o Interstate trade and commerce

• Tax payable (full or part) on purchases or sales of motor spirits, if tax is paid on previous sale or purchase of the very goods, or inter state transactions between notified oil companies.


The exemptions will not be given or conferred on government and /or diplomatic offices, etc. whenever any specified class or classes of purchasers need to be exempted, in the scheme of VAT, they would be entitled to refund of VAT paid on purchase, subject to fulfillment of the conditions and requirements.


Incase of interstate purchase, the same position would continue. Incase of intrastate purchase, the taxation would be governed by VAT law. The tax, if any, paid by the purchaser would be eligible for input tax credit


Hey abhi, thanks for sharing the information and i am sure your information is going to help many tax payers. BTW, i am also adding a presentation on VAT guide which will explain everything small thing about VAT.
 

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