Vat rate in maharashtra

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2011 I wanted to know,whether there is any different rate of VAT (Maharashtra) in case of manufacturing concern.

If there is manufacturer of copper wire, liable to pay excise duty on manufacture.
He is also involved in the activity of import and export of manufactured goods.

Then, what would be the rate of VAT and CST applicable to him ?
Since, there is 4% VAT rate is applicable for trading activity engaged in copper wire.
So, whether manufacturing activity makes any difference in the rate of VAT applicable for Maharashtra State.

Awaiting for expert's and others comment.
Thank You..!

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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10 December 2011 Mr. Author,
Generally, separate rates are not provided for manufacturer and traders under any of the VAT Acts in India. Payment of excise is governed by a different enactment of law an not linked to the VAT.Normal rate of VAT is applicable on the sales unless specially obtained exemption under SEZ or the earlier small scale industries schemes.
MJK

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2011 thank you sir..!

and one more question sir,
what is the exemption under notification no. (5) (4) (a) under excise. in case of sale scrap.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Notification No. 5/4(a) under Central Excise refers to exemption of duty on sale of scrap generated during manufacture.
Generally, scrap produced during copper wire manufacturing is exempt from excise duty when sold, as per this notification.
This encourages disposal of scrap without double taxation.

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