School bags, shoes, ties, uniforms, stationary, etc., sold on campuses, are likely to cost more as the state government plans to impose Value Added Tax (VAT) on sale of these items from the next academic year.
Following complaints to the commercial taxes department that some vendors are evading taxes while selling these items on campuses, the state government has decided to impose VAT on such sale.
"During a survey, it was found that many vendors were not paying VAT on sale of school kit on campuses. To figure out if the practice is followed in other schools as well, we have called for a meeting with the school managements," said Revathi Rohini, additional commissioner (enforcement).
As per schedule V of commercial taxes, school items fall under goods taxable at a standard rate of 14.5%. If taxes are imposed on items sold in schools, the burden will directly fall on parents. "Since the vendor already pays VAT for sale of these items on campus, why should we pay again from our pockets. If the government asks us to pay VAT from our pockets for the vendor's ignorance, we would be forced to put the burden on parents by hiking prices," said Sreenivas Reddy, president of Telangana Recognised School Management Association. .
A lot of state-run schools have set-up stalls to sell basic items. "The vendors are supposed to pay VAT on these items. If they don't pay the tax, school managements will have to bear the taxes," Rohini said.