Increase in Vat Rates by 0.5% w.e.f 03-09-2012

Following amendments made in notification dated 03-09-2012:

1. Vat Rate of Items in Schedule B which were taxable @ 4% originally and increased to 5% vide notification dated 29-01-2010 has been increased to 5.5% w.e.f 03-09-2010 (on goods other than declared goods i.e. wheat, paddy, rice (Entry 162,164)). With surcharged of 10%, the effective rate shall be 6.05%
2. Thus effective vat rate on wheat, paddy rice shall be 5%
3. On other declared goods, other than wheat, paddy rice, covered by Sch C-1, rate increased from 4% to 4.5% and effective rate after adding surcharge shall be 4.95%
4. Schedule E containing special rate of tax for diesel,petrol, plastic grannuels, plastic powder, spectacles, UPS, Invertor, LPG for domestic use, pre owned cars, sugar cane, cell phones , basic vat rate increased by 0.5% and effective rate by 0.55% . No increase of vat on pre owned cars which are taxable on basis of capacity of car.
5. Vat rate on Sch D items i.e. Cigarettes, Cigars ,ATF , except when sold at Asr Airport increased from 22% to 22.55%
6. Vat on Schedule F i.e. residuary items increases from 13.75% to 14.30% effective rate
7. No increase of vat on Schedule C items and shall continue to be taxable @ 1.1%. Schedule C covers- 

a)      Bullions,Gold, Silver and Platinum Ornaments, Noble Metals and Ornaments, Precious Stones

b)      Pulses

c)      Unbranded Besan

Note: Imitation Jewellery and synthetic gems are covered by item 54 of Schedule B and hence shall be taxable @ 6.05%