Rate of k vat tax in sold of ups with battery

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2014 Hi Sir,

This is Mohammed Subhan Shaikh, I am handling a manufacturing company account this company make Industrial UPS. With UPS we given to our customer battery also its fulling backup set.
UPS is a commercial tax @5.5% and battery @14.5% but when we sold both of combined as backup products then we can sold this product with commercial tax @5.5% under K VAT ?
Kindly send your advise......
Thanks & Regards,
Mohammed Subhan Shaikh

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2014 Still I not received your advise...........

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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19 July 2025 Hi Mohammed,

Regarding your question on Karnataka VAT (K-VAT) rates on sale of UPS with battery as a combined backup product, here’s a detailed explanation:

1. Separate VAT Rates:
Industrial UPS — VAT @ 5.5%
Battery — VAT @ 14.5%
These are the typical tax rates under K-VAT applicable when sold separately.

2. Sale of UPS + Battery as a Single Composite Product (Backup Set)
When UPS and battery are sold as a single combined product (backup power system), the question is whether the lower VAT rate (5.5%) on UPS can apply to the whole set or if battery attracts the higher rate (14.5%).
3. K-VAT Law & Composite Products:
Under VAT laws, composite goods are often taxed at the rate applicable to the principal item or the item which determines the nature of supply.
If UPS is the principal item and battery is accessory or part of the composite backup system, many times the lower VAT rate applicable to UPS (5.5%) can be applied on the entire combined price.
However, this depends on:
Whether the sale is treated as a single composite supply (one invoice, one product) or
Sale of two separate items invoiced separately.
4. Practical Advice:
If UPS and battery are inseparably combined and sold as a single backup product, you may apply 5.5% VAT on the entire transaction.
If battery is sold separately or priced distinctly, battery attracts 14.5% VAT.
Maintain proper documentation clarifying this as a composite product.
5. Caution:
K-VAT department may scrutinize such cases.
To avoid disputes, get written clarification from commercial tax department or rely on advance rulings if possible.
Always cite relevant notifications or circulars if available.

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