Dear all,

Please note that the rate of tax on goods falling under Schedule V of

APVAT Act 2005 is increased from 12.5% to 14.5% w.e.f 15-01-2010.

Please also find attached G.O to this effect. But the rate of tax on hotels having Three Star and above rating and having turnover more than 1.5 Crore is construed as not increased as the rate of tax under

Section 4(9)(b) and (d) is not changed.

Attached File : 36 apvat go 35 from 12 5 to 14 5 wef 15 1 2010.doc downloaded 4676 times

Total thanks : 3 times

Accounts Executive

Thank you Mr. Bala Kishan




Thank Mr. Bala,

Can u solve my query related to WCT on SEZ.

Is WCT is applicable for WCT performed for SEZ unit.



Manish Pandey



 thanx SIR JI


Dear Manish Pandey,

The below is for your clarification.

It should be noted that the tax deducted at source cannot be equated with tax liability. Section 22 (3) does not distinguish between works, done for different categories of contractees and different destinations of supply, when it comes to the tax deduction at source. No exemptions from TDS are provided under the APVAT Act. Therefore, exemption from TDS cannot be granted even in cases where the deemed sales i.e., supplies of goods by way execution of works contracts are exempted. Hence the Contractees, who are under the statutory obligation to deduct tax at source in terms of Sec. 22 (3) of the APVAT Act, shall collect tax at source at the appropriate rates. However, in case the tax liability of the works contractors, from whom the tax is deducted at source, is less than the amount of tax deducted at source, the differential amount will be refunded or adjusted against the present or future liability.

Further clarifications, please let me know....



Dear Mr. Bala,

Thanks for your comment on WCT-TDS .

I still have one question that whether WCT-VAT is applicable  transfer of property to SEZ.



Manish Pandey


Dear Manish,

Please read the file which i had uploaded in Brief Understanding of  Works Contract Tax and VAT



When you have posted this?



Thanks Mr.Bala.

One more question :

What is advance ruling under AP-VAT ?






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