Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: TDS :: VAT Audit :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: cpt :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARDS
ę VAT (Value Added Tax) »
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill

Govt set to cut VAT, and your bills as well
March, 28th 2016

The Delhi government's budget for 2016-17, to be tabled in the Delhi assembly on Monday, is likely to steer the capital towards becoming the state with the lowest value added tax regime in the country.

The budget provides the Aam Aadmi Party government the opportunity to initiate the process of rationalising the VAT rates that could enhance tax compliance to offset any revenue loss arising from low VAT rates. The rejigging of items in the current six-layered VAT structure will also make for streamlined tax collecting operations.

The Delhi government is likely to move some items of common use currently attracting 12.5% VAT to the 5% category. Such items at present include meals in restaurants, marble tiles and bathroom fittings for homes. Also, the government plans to standardise to a single rate the varying rates that are currently levied on some items such as garments and shoes.

However, an item or two under the "exempted" category may be now be pushed into the 5% tax slab.

The existing VAT regime in Delhi is a six-layered structure. Schedule 1 includes exempted items such as CNG, PNG, rice and wheat. Bullion and other items in the second schedule attract VAT of 1%m, while items used on an everyday basis, including shoes and garments costing below Rs 5,000 and cell phones priced at under Rs 10,000, are taxed at 5% under Schedule 3. The fourth schedule levies VAT at the rate of 20% on luxury items such as branded watches and premium alcoholic and non-alcoholic beverages. The fifth schedule items, taxed at 12.5%, include food in a restaurant and hardware. There is a separate schedule for petroleum and diesel products and aviation turbine fuel with VAT ranging from 18% to 30%.

As part of the VAT rationalisation, the government plans to track and bring unregistered dealers and commercial tax evaders into the tax net. It proposes to use digital data from the official Geospatial Delhi Limited and other government departments to identify dealers and locate their official addresses on maps of markets and commercial areas. The mapping will also be used to reach out to traders who are not registered with the VAT department by comparing digital data with ground records with the relevant departments.

All the signs of a successful and people welfare oriented government. I hope people sit down and compare this with Central Government policies and budget of economic tyranny on Middle Class.


In its election manifesto, AAP had incorporated three-point plan for streamlining the tax system in Delhi. It had promised that by simplifying the system and taking the entire taxation and licensing procedures online, it would ensure that the capital would have the lowest VAT rates in India.

Meanwhile, Delhi's VAT collections in the current fiscal have crossed Rs 20,000 crore, just short of the revised target of Rs 21,000 crore and much higher than last year's collection of Rs 18,500 crore.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions