I am working in Pragati group of companies as an accountant. I have a query. Our company is importing agricultural machinery from China and there by purchases are accounted. When we are selling the agricultural machinery, what is rate of KVAT , whether 14% or 5%. Also whether we have to pay entry tax on import of machinery. Also it would be helpful for us if you can send the concerned notification in this regard.
16 February 2012
As to VAT on sale of machinery, it shall be taxed @ 14%.. however should it be agricultural implements not operated manually it shall be taxed @ 5% under third schedule..
As to entry tax.. Agricultural pumpsets are exempted under sl 3 of 2nd schedule KTEG clr. no. 503/92-93 dated 31.03.93.. spares are however taxable @ 2% under sl nop. 40 of notif no. FD 69 CET 92(I) dated 30.04.1992 KTEG CLR no. 436/92-93 dated 14.07.1993. Agricultural diesel engines and it parts - 1% unde rsl no.17 of notif FD 69 CET 92(III) dated 30.04.1992
Agriculture machinery is exempted from entry tax levy under sl no. 22 (agriculture mchinery is out of entry tax)
CAclubindia
