Exice ritc code 63049250 vat applicable or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2012 Dear Sir

Please confirm 100% cotton terry towel taxable or not use exice chapter code 63049250 & 63026000 as per maharashtra VAT

AMOL PRAVIN SISODIYA

AMOL PRAVIN SISODIYA (Querist)
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19 December 2016 Please confirm 100% cotton terry towel taxable or not use exice chapter code 63049250 & 63026000 as per maharashtra VAT

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2024 The applicability of VAT (Value Added Tax) on products such as 100% cotton terry towels under the Excise Chapter Code 63049250 and 63026000 in Maharashtra can be determined based on the classification and rates set by the state government. Here’s a breakdown:

### Excise Chapter Codes:

1. **63049250**: This code typically refers to "Terry towels and similar woven terry fabrics, of cotton, other than terry-towelling and similar woven terry fabrics of headings 58.01 to 58.06" under the Indian Central Excise Tariff.

2. **63026000**: This code generally refers to "Toilet linen and kitchen linen, of terry towelling or similar terry fabrics, of cotton" under the Indian Central Excise Tariff.

### VAT Applicability in Maharashtra:

VAT applicability on goods like cotton terry towels would depend on whether these products are classified as essentials, luxury items, or fall under any specific VAT rates determined by the Maharashtra government. However, the specifics of VAT rates and applicability can vary based on the nature of the product and its intended use.

### Clarification:

To confirm whether VAT is applicable on 100% cotton terry towels under these Excise Chapter Codes in Maharashtra, you would typically refer to:
- **Maharashtra VAT Schedule**: This document provides details on VAT rates applicable to different categories of goods.

### Steps to Confirm VAT Applicability:

1. **Check Maharashtra VAT Schedule**: Review the schedule to find the applicable VAT rate for cotton terry towels under the specified chapter codes.

2. **Consult a Tax Advisor**: For precise information and compliance, it's advisable to consult with a tax advisor or chartered accountant familiar with Maharashtra VAT laws. They can provide specific guidance based on the latest regulations and help ensure compliance with VAT requirements.

3. **Documentation**: Maintain accurate records and documentation of transactions involving cotton terry towels to support VAT compliance and filings.

### Conclusion:

While cotton terry towels are generally considered essential items, VAT applicability can vary based on the specific rates set by the Maharashtra government. Referencing the VAT schedule and consulting with a tax professional will provide clarity on whether VAT is applicable and at what rate for these products in Maharashtra.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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