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Chandigarh exempts VAT on "Agarbatti"
December, 15th 2007

The Chandigarh Administration has exempted the incense sticks used mostly for religious purposes like agarbatti and dhupbatti from 4 per cent Value Added Tax in UT Chandigarh.

Amendments have been made in Schedule "A" and "B" of the Punjab Value Added Tax Act, 2005 ( Punjab Act No. 8 of 2005), said an official release.

As per the amendments, in Schedule 'B' appended to the Punjab Value Added Tax Act, 2005 as extended to the Union Territory, Chandigarh, Item at Sr. No. 55 and entries relating there to shall be omitted. In Schedule 'A' appended to the said Act after Sr. NO. 59 and the entries relating there to, the following shall be added, namely incense sticks commonly known as agarbatti, dhupkathi or dhupbatti.

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