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RAJU (LEARNER) 26 November 2009
Yes. VAT is applicable on sale of gunny bags, drums etc.,
VAT is a levy on sale of goods and is primarily governed by Sale of Goods Act. Goods have been defined to include all kinds of movable properties (other than news papers, shares etc.,). The VAT law of various States provide for Schedules giving therein the rate of VAT applicable on the goods including those exempt from VAT. Hence, all immovable properties other than those specifically exempted under the VAT provisions are liable for VAT.
Hope you have been clarified.