To
...................................
No.Sr.DC(A&R)/Adm-3/Notification/2006 Mumbai Dt: 20.01.2007
Trade Cir.- 7 T of 2007
Sub: Extension of effect of tax rate on essential commodities & articles i.e. Solapuri chaddar and Towel.
Ref: 1) Notification No. VAT/1506/CR-130/Taxation-1 dt. 30/9/2006
2) Notification No. VAT/1506/CR-130-A/Taxation-1 dt. 30/9/2006
Gentlemen/Sir/Madam,
Essential commodities covered under some entries of schedule 'A' were tax free upto 30th September 2006 and contra entries of these commodities were to be taxable @ 4% from 1.10.2006 under schedule 'C'. Similarly some entries in schedule 'C' were to be taxable @ 12.5% from 1.10.2006, which were taxed @ 4% upto 30.9.2006.
2. By virtue of amendment to the schedule by notification referred to (1) above, the benefit of concessional rate is extended as under:
A) following entries will be in A schedule and thus the commodities will be tax free upto 31st March 2007
ii) Gur
B) Commodities covered by the following entries will be taxable @ 4% w. e. f. 01/4/2007
C) The following commodities will be taxable @ 12.5% w. e. f. 01.04.2007
i) Wet dates,
ii) Dry fruits including raisins and currants
iii) Tea in leaf or powder form including instant tea
D) Solapuri chaddar and Towels covered under notification No. 1506/CR-118/Tax.-1 dt. 18th June 2005, at serial No. 11 and 13 to the schedule were to be taxable @ 4% under schedule entry C-81 (b) w.e.f. 01/10/2006.
By virtue of amendment to the schedule by the notification referred at serial no. (2) above, effect of the 4% rate is extended. These articles will be taxable @ 4% w.e.f. 01.4.2007.
3. This circular cannot be made use of for legal interpretation of provisions of laws as it is clarificatory in nature. If any member of trade has any doubt, he may refer the matter to this office for further clarification
4. You are requested to bring to the notice the contents of this circular to the members of your association.