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"Honey" product - Karantaka vat calculations

VAT (Legacy) 951 views 2 replies

VENKATESH Purushothaman

Founder

39 Points Posted on 13 February 2015

Hi,

Need some help.

I would like to sell Honey from Bangalore.

I'm buying the Processed Honey (packaged) from Karanataka Based Manufacturer. He is charging 5.5% VAT on the Honey Product that I'm buying from him.

# Is Honey a Taxable item under Karnataka ?

# If it's a taxable item, How much VAT that I should collect from my Karanataka Based Buyer ?

# If it's a taxable item, How much VAT/CST that I should collect from my Non-Karnataka Based Buyer ?

Thanks for your help :)

Thanks,

Venkatesh

717venkatesh @ gmail.com

Replies (2)

Earlier Honey was taxed @ 4% KVAT, but later it was exempted from Tax vide Notification No.FD.121 CSL.2006 dated 10.05.2006. This applies to Natural Honey sold by a dealer from Karnataka. Since CST rates depend on the selling state VAT Rate, the CST is also exempted.

However, clarification is required for Honey based products

RANJIT

MANAGER - ACCOUNTS

84 Points Posted on 11 August 2016

Hi!

The Karnataka commercial tax website today shows that VAT% for Honey is 5.5% under Schedule III. Then how can it be exempt? If there is any current notification giving exemption to Honey in Karnataka, pls share.