VAT enters the matrix, online purchases now charged 5% more
May, 22nd 2013
That online steal just got expensive for those calling Goa home, with the state government on Tuesday notifying the Goa Tax on Entry of Goods (Amendment) Act, 2013. Goods bought online will now have a 5% value added tax (VAT) charge. And keeping in mind that goods purchased online are delivered by courier or parcel service operators, the government has changed the definition of transporters so that the commercial tax department can tap the linkages.
Under the notification 'transporter' means any person who carries on the business of transporting goods on account of any other person into or outside or within the state of Goa and includes carrier, transporting agent, courier, parcel service operators and bus service operators. "On failure of the transporter to pay the tax levied under this section, the transporter and the consignee shall be jointly and severally liable for payment of such tax and penalty levied," the notification signed by law secretary Pramod Kamat states.
The government has also increased the VAT to 12.5% on several items purchased from outside the state. These include air-conditioners (earlier 5% VAT) air-conditioning plants, air coolers, fireworks, colour matches, foamed rubber, plastic foam or any other synthetic foam articles such as sheets, cushions, pillows and mattresses, and furniture of all kinds, including treasure chests, safes and lockers and parts and accessories, all earlier charged a VAT of 2%. The was passed by the legislative assembly on May 2, and assented to by the governor on May 16.