Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Thursday, April 14, 2016

Sarees Exempt from DVAT or Taxable at 5%

THE FIFTH SCHEDULE TO DELHI VAT (See section 6)
List of dealers exempted from paying tax on sale of goods
S.No 31 Silk and garments made of silk but not including Sarees made of silk.
·         So the Dealer who Deals in Sarees made of Silk are not Exempt.
·         Dealers of Silk  ( Fabric)  and Garments made of Silk are Exempt
THE FIRST SCHEDULE  List of Exempted Commodities
WEF 21.06.2011
Exempted : Textile as described in the First Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 before its omission by the Govt. of India to give effect to section 75 of the Finance Bill, 2011 but not including
(i)  Bed-sheets, pillow covers and other made ups covered by HSN entry nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06. (for HSN Entries – Refer Annexure I at the end of the Schedules)
(ii)  Imported varieties of textiles.
(iii)(a) industrial textiles such as canvass belt, filter cloth etc.
                (b) furnishings having sale price of more than Rs. 100/- per meter or per piece or per set, as the case               may be, other than handloom furnishings.
                (c) Suiting having sale price of more than Rs. 500/- per meter
                 
              So Items covered under (i) to (iii) above are Taxable

WEF  11.05.2005
Exempted : Khadi garments, bags and made-ups.

WEF 31.03.2008
Exempted :   Embriodery and Zari items, that is to say-(i) imi, (ii) zari, (iii) kasab, (iv) salma, (v) dabka, (vi) chumki, (vii) gota, (viii) sitara, (ix) naqsi, (x) kora, (xi) glass bead, (xii) badla and (xiii) gazai

THE THIRD SCHEDULE (See section 4)
List of Goods Taxed at 5%
WEF 11.05.2005

Taxable : Silk fabrics including silk sarees but excluding handloom silk unless covered by Additional Excise Duty.
Contributed By Pawan and Amit ( CA Finalist at Sandeep Ahuja & Co.)

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