PLEASE CLEAR THE CONCEPT REGARDING SINDOOR STICK -WEATHER IT WUD BE TREATED AS TAX FREE OR TAXABLE ITEM ? IF IT IS TAXABLE THEN WHAT IS THE CORRECT RATE OF TAX?
& Under Sales Tax Act . Actually we make sale of Three type of sindoor Products 01 Sindoor Powder Based -Traditional 02 Sindoor Liqued Base 03 Sindoor Stick Base -Lipstick type
Question is that -All abobe three are taxfree in Himachal ?
25 July 2025
Hereโs a clear explanation based on your query about **Sindoor Stick (not powder)** and its taxability under **Himachal Pradesh Sales Tax Act**:
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### Taxability of Sindoor Products in Himachal Pradesh:
1. **Sindoor Powder Based (Traditional)**
* Generally, **Sindoor powder is exempt from VAT/sales tax in many states** as it is considered a religious article. * However, specific exemptions depend on the state's VAT Act schedules.
2. **Sindoor Liquid Base**
* This is often treated like a cosmetic or chemical product. * May attract VAT unless specifically exempted under the state law.
3. **Sindoor Stick Base (Lipstick Type)**
* Since it resembles a cosmetic product (like lipstick), **it is usually considered taxable under VAT**. * It is unlikely to be treated as tax-free religious article because of its cosmetic form.
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### What about Himachal Pradesh?
* **You need to check the Schedule of exempted goods under Himachal Pradesh VAT Act.** * Generally, **Sindoor powder is exempt**, but Sindoor stick or liquid base is **likely taxable** as a cosmetic product. * The **rate of VAT** on cosmetic items in Himachal Pradesh typically ranges between **5% to 12.5%**, but you must check the current rate applicable.
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### Summary:
| Product Type | Tax Status in HP (likely) | | ------------------- | --------------------------- | | Sindoor Powder | Tax-Free (Exempted) | | Sindoor Liquid Base | Taxable (Cosmetic category) | | Sindoor Stick Base | Taxable (Cosmetic category) |
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### Recommendation:
* Verify the **latest Himachal Pradesh VAT schedules** or consult the commercial tax department of HP for confirmation. * If you want, I can help you find the latest HP VAT exemption list or suggest how to check official notifications.
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Would you like me to help you draft an official letter/email to the tax department for clarification?