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Haryana - Surcharge on VAT 5%

subramanya (Professional) (907 Points)

05 April 2010

Dear All,

With effect from 1st April 2010, Haryana VAT Dept has given notification with regard to Surchage on VAT 5%.

On All VAT rates (1%, 5%, 12.5%, etc.,) 5% Surchage needs to be calculated.

Refer notification for the same.

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16 Replies

TTTax (CPA) (40 Points)
Replied 05 April 2010

Does this also apply to CST? Is this 5% or 5% of existing rate... eg 12.5 plus 5% or 12.5 plus .625% ?

Thank you

Chintal Shah (Sr. Finance Manager) (26 Points)
Replied 06 April 2010

There seems to be some confusion regarding the additional VAT @ 5% as per Sec 7A of Harayana VAT Act. Whether the above 5% is applicable as surcharge or Additional Tax.

Secondly whether surcharge needs to be paid on all the VAT rates i.e 5% CST and 12.5% VAT? Also whether setoff is available incase of surcharge both in CST and Haryana VAT?

Request to please clarify regarding its apllicability .

AMIT (Service) (30 Points)
Replied 06 April 2010

This is the Additional Surcharge on VAT. At present Rate is For. Ex 5%, the new rate will be

on Assessable Value Rs 100

VAT 5% Rs 5

Surcharge on VAT Rs 0.25

Total Invoice Value Rs 105.25

The Surcharge will be apply only on the VAT Rates as cleared Mentioned in the Notification. So will not apply on the CST Rates. Also I think State Goverment has no power to levy the Surcharge on CST. The CST Revenue Goes to the Central Goverment and this surcharge has been levied under harayana Budget to accumlate the revenue from State and utilisation with in State. So no Surcharge on CST.

1 Like

ca.sanjeev kumar (CEO) (1637 Points)
Replied 15 June 2010

The surcharge will not be applicable to:

declared goods as specified under Section 14 of the Central Sales Tax Act, 1956 and
Retailers who have preferred Composition option

In all other cases surcharge shall be applicable.

CA. Sanjeev Singhal

subramanya (Professional) (907 Points)
Replied 16 June 2010

I agree with Mr.Sanjeev Kumar

In addition, if the Interstate sales are not of declared goods and against Form C, then as the local vat rates are applicable, Surcharge is also applicable.

With Regards,

Subramanya