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Rates of taxes

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NitinPanthri (Querist)
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01 July 2016 Dear Experts

I have been facing a challenge while deciding tax rates of covers, cases of phones in Delhi and Haryana which are having the following clauses in schedule in VAT acts:

Costing of cover Rs. 800 and Retail price is Rs. 1600
Costing of phone for which it will be used - 20,000 and Retail Price - Rs. 25,000

Delhi - Computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof, Mobile phone and all mobile accessories costing upto rupees ten thousand. - 5% otherwise 12.5%

Haryana - Cell Phones (including their parts and accessories) exceeding retail price of 10,000 - 8% Otherwise 5%.

Please advice me how to decide the rate and the interpretation of the law.

Thanks in Advance!

Regards, Nitin

Kaushik Joshi

Kaushik Joshi (Expert)
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02 July 2016 Dear Nitin, Assuming only the basis of your example of case cover and phones, Delhi Case cover - 5% phone - 12.5% Haryana case cover-5% phone-8% in both state laws any thing costing less than 10000 will be charged at the lower rate. keep this in mind.

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