Important Notifications & Orders: December 28

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  • Order: DVAT: 
  1. Caesarstone is taxable under Section 4(1)(e) of DVAT Act at the rate of 12.5%

The Delhi Government vide Order No. F. 396/ CDVAT/2016/467-475 dated December 22, 2016 has clarified that Caesarstone is taxable under Section 4(1)(e) of the Delhi Value Added Tax Act, 2004 (“the DVAT Act”) @ 12.5%.

 Further, it is stated that Marble is a natural stone sold in the market as marble while Caesarstone is a man- made stone sold in the market as Caesarstone and not as marble. It is true that both are stones and can be used for the same purpose but still the intent of the legislature in introducing Entry 191 in the Third Schedule of the DVAT Act is only to include natural stone marble sold in common parlance as marble. Furthermore, it is also not covered under Entry 4 and Entry 46 of Third Schedule of the DVAT Act which covers only bricks, Shahabad stones and earthen tiles made from clay.

  1. Edge Band made up of plastic, manufactured and used as ‘industrial inputs’ is covered under Entry 84(166) of Third Schedule to DVAT Act

The Delhi Government vide Order No. F. 393/ CDVAT/2016/476 dated December 22, 2016 has clarified that edge band made up of plastic, manufactured and used industrial input are covered Entry 84(166) of the Third Schedule to the Delhi Value Added Tax Act, 2004 (“the DVAT Act”) which deals with other plates, sheets, film, foil and strip, of plastics, non-cellular, whether lacquered or metallised or laminated, supported or similarly combined with other materials or not.

Copy of Order at Sr. No 1 and 2 can be accessed at: http://dvatonline.gov.in/Docs/DeterminationOrder/1536331.pdf

  • Order: Kerala VAT:
  1. Re-deployment of Audit Assessment Wing

The Kerala Government vide Order G.O. (Ms) No. 108/2016/Taxes dated December 19, 2016 has re-deployed the Audit Assessment Wing created vide Order G.O (Rt) No. 901/2014/TD dated November 17, 2014 to strengthen the Internal Audit Wing in Commercial Taxes Department  so as to attain the targeted growth rate in tax revenue.

Read more at: http://www.keralataxes.gov.in/orders/GO-Ms-108.2016-Audit-Wing.pdf

  1. Clarification regarding rate of compounded tax payable for a metal crusher with jaw size 30” x 4”

The Kerala Government vide Order No.C3/18380/15/CT dated November 3, 2016 has in light of the Order No. C3/44783/09/CT dated May 10, 2011 and C3/13096/11 dated October 22, 2011, clarified that rate of compounded tax payable for a metal crusher with jaw size 30” x 4” is Rs. 3.20 lakhs from 2014-15 onwards.

 Read more at: http://www.a2ztaxcorp.com/wp-content/uploads/2016/12/Order-No.C3-18380-15-CT.pdf

  • Notification: FTP:

Export of Potatoes permitted without any Minimum Export Price

The Directorate General of Foreign Trade vide Notification No. 32/2015-2020 dated December 27, 2016 has made amendment in Para 1 of Notification No. 15/2015-20 dated July 26, 2016 read with Notification No. 85(RE-2013)/2009-2014 dated  June 26, 2014 relating to export of potatoes. The amended Para 1 is as follows-

“Export of Potatoes, Fresh or Chilled at Serial Number 50A of Chapter 7 of Schedule 2 of ITC (HS) Classification of Export & Import Items shall be permitted without any Minimum Export Price (MEP).

 Thus, with effect of this amendment export of Potatoes is permitted without any Minimum Export Price (MEP).

Read more at: http://dgft.gov.in/Exim/2000/NOT/NOT16/Noti%20No.32ENGLISH.pdf