Levy of VAT

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Manoj Kumar Joshi (Querist)
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25 December 2009 I have partnership firm importing electronic cigarettes from abroad and sell the same in delhi. I wish to know as to what rate of VAT will be applicable?

If i sell the electronic cigarettes while in transit to India(Delhi) and before they enter customs barriers of india to a buyer in delhi by transfer of documents to title to the goods to such buyer will such sale be exempted from VAT in delhi?

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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26 December 2009 Electronic cigratte is an unclassified item , hence liable to tax @`12.5%. If you sell the goods during high seas or before entering the customs barriers in India, it will be exempt from Dvat/ CST.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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Manoj Kumar Joshi

Manoj Kumar Joshi (Querist)
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26 December 2009 Thank You sir for such a prompt response.

Kindly let me know if the sale of electronic cigarettes tp a buyer in delhi during high seas would amount to import for the said buyer and would he require IEC number for getting the goods cleared from customs as the the ducument of title to the goods are held by him or our firm would have to get the goods cleared from customs on buyer's behalf as we have the IEC number.

what if he sells the goods to retail consumer so bought by him during high seas after they enter territory of delhi, will such sale be subject to levy of vat in delhi?

hope to hear from you soon.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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26 December 2009 The buyer requires iec and vat/cst registration for buying goods on high sesas basis. Yes, the sales to the retail customer is subject to vat.

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