Value-added Tax (VAT) was introduced on 1st April 2005 to eradicate the existence of double taxation and the cascading effect of the prevalent sales tax structure. The rules associated with VAT differ from one State to another so that the States can impose required regulations and implement the same.
This piece talks about the VAT in West Bengal and everything related to it; read on!
Value-added Tax (VAT) is a kind of indirect tax which is levied on each good and service for value-added at each stage of the production and distribution cycle. This means that starting from raw materials to reaching the penultimate retail purchase, VAT is imposed at every point in the making and distributing cycle.
In the State of West Bengal, the West Bengal Value Added Tax Act, 2003 is levied on sale of goods based on value added to taxable goods at every point of sale of these goods and on purchases of the same in West Bengal.
The VAT rates vary depending on goods and segments these items fall under. These are mentioned in the tabular format.
Schedule |
Applicable Goods or Services |
VAT Rates in West Bengal |
A |
Agricultural implements, bangles, coconut fibre |
Nil |
Books and journals including Braille, charts and maps |
||
Wooden crates, silk yarns, aids used by handicapped persons, cotton yarns. |
||
AA |
Dealers belonging to Special Economic Zone, by a dealer to a dealer in a Special Economic Zone, between dealers of Export Oriented Units. |
Zero-rated |
B |
Tea sold under any tea auction centre in West Bengal which is further authorised by the Indian Tea Board. |
1% |
Gold, silver, precious metals, Rhodium. |
||
C |
Copyright, patents, all types of toys except electronic, betel nut, beedi leaves, utensils |
5% |
Electrical capacitors, answering machines; vegetable wax, copper ores, aluminium ores, liquid glucose, zinc ores. |
||
All types of yarn, aluminium in all forms, agricultural implements; electronic calculators, microphones, optical fibre, |
||
D |
Tobacco, pan masala, television, mobile phone |
Not above 35% of turnover |
Note: Goods which are not mentioned under Schedule A, Schedule B and Schedule C are rated at 14.5%.
The following individuals are liable to pay VAT in West Bengal:
Here, the appointed days refer to the day from which the West Bengal Value Added Tax, 2003, came into effect.
Apart from existing dealers, there are fresh dealers who must pay VAT in West Bengal.
By fresh dealers, the Act means to point out the following individuals:
To register for Value-added Tax in West Bengal, one has to follow the steps mentioned below:
Step 1 - Visit the official website of the Directorate of Commercial Taxes, Government of West Bengal.
Step 2 – Navigate to VAT/CST/WBST.
Step 3 – Click on Schedules & Forms.
Step 4 – On the following page, click on VAT Forms.
Step 5 – Click on Form – 1 (Application for New Registration), Form – 1CR (Application for Composition Resignation).
Following is a list of documents that one must submit while completing VAT registration:
To file a return against the VAT payment in West Bengal, follow the steps mentioned below:
Step 1 – Visit the official website of the Directorate of Commercial Taxes, Government of West Bengal.
Step 2 – Click on the ‘Download’ option.
Step 3 – Download VAT e-Return Form-14, VAT e-Return Form-14D, VAT e-Return Form-15, and VAT e-Return Form-15R under the ‘Download Blank Jar Files’.
Step 4 – Upload the XML files.
Step 5 – Take a printout of the Acknowledgment receipt.
As stated earlier, VAT is an indirect tax which is levied on goods whenever it adds value in any stage of the supply chain, i.e. purchase to sale.
On the other hand, GST (Goods and Services Tax) is a comprehensive tax that subsumes other indirect taxes such as VAT. It is one single tax that is imposed on the supply of goods and services right from the manufacturer to the consumer.
In the case of VAT, the seller’s State is responsible for collecting tax. Contrarily, the consumer’s State has the liability for collecting the tax.
Now that individuals have come to know about the difference between VAT and GST and the rates of VAT in West Bengal and related information, we can conclude the discussion. Read the details carefully, download the correct forms and complete registration to initiate business in West Bengal.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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