The Jammu and Kashmir Value Added Tax Act, 2005. CIRCULAR
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Clarification No.:22 of 2005, Dated : 24th June, 2005

M/s. G.S. Traders, Gurudwara Market, Nanak Nagar, Jammu has sought clarification on the below mentioned points:-

1.	Please intimate us the rate of VAT on Fibre Squatting pans (Indian Type) seat used in Rural area made from Fibre Glass.
2.	Whether the Govt. Department (State/Central Govt.) will deduct VAT as earlier they were doing.
3.	Vat on all types of casting (C.I.Casting, G.I. Casting & Brass Casting, Bib Cock)

It is clarified that the item Fibre Squatting Pans (Indian Type) falls under the Entry NO.5B Schedule "D" of SRO 167 of 2005 dated 16-06-2005 and attracts VAT @ 12.5%.

Regarding second point, no tax is to be deducted at source where any agency as referred to in Section 57 VAT Act, 2005 purchases goods as pure supply. Supply of taxable or sanctioning of contract for supply of taxable goods is subject to condition of furnishing of clearance certificate from concerned Assessing Authority. However, services provided in the shape Works Contract shall continue to be governed by the provision of J&K GST Act, 1962, hence in such case, it is imperative upon the drawing & disbursing officer to deduct tax at source.

Casting which shall include C.I.& G.I. Castings shall attract tax @ 4% under Entry No.3 to Schedule "C" of SRO 167 of 16-06-2005Articles of Brass, which include Brass Bib Cocks & Brass casting shall attract tax @ 12.5% under Entry No.11 to Schedule "D" of SRO 1167 of 16-06-2005.