Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft
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: articles on VAT and GST in India :: cpt :: due date for vat payment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TDS :: form 3cd :: list of goods taxed at 4% :: VAT Audit :: empanelment :: TAX RATES - GOODS TAXABLE @ 4%
VAT (Value Added Tax) »
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?
 New tax structure not higher than VAT
 Cos will be reimbursed for exemptions that currently exist in the VAT regime
 GST will get states more than VAT
 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)

VAT on CNG in Gujarat is highest in the country
June, 11th 2011

 Gujarat is the biggest consumer of gas in the country, accounting for 40% of the total gas consumed, but it is also the state which has levied the highest rate of Value Added Tax (VAT) on Compressed Natural Gas (CNG).

According to official sources, Gujarat has levied 15% VAT on CNG sales, significantly higher than Maharashtra where the levy is 12.5%, Tripura (12.5%) and Haryana where VAT on CNG is only 5%. The VAT on CNG in Uttar Pradesh is 13.5%.

There is no VAT on CNG in New Delhi and, in fact, the only state where VAT on CNG is comparable with Gujarat is Andhra Pradesh, where the levy is 14.5%. "Most of the other states have VAT of around 12.5%. In terms of VAT on CNG, Gujarat ranks among the states with the highest VAT, if not the highest," said a CNG expert. The selling price of CNG in Gujarat is between Rs37-38 per kg, as compared with less than Rs30 a kg in New Delhi.

"CNG consumers in Gujarat are paying close to 30% as levies, including VAT and Central Excise, which is high by any standards. There is an urgent need to reduce the levies," says an official of a City Gas Distribution (CGD) company.

There have been frequent demands for a reduction in VAT on CNG, but the Gujarat government doesn't seem to be in the mood to cut the tax rates. "There is no plan to reduce the VAT levied on CNG," state energy minister, Saurabh Patel said categorically. Patel instead put the blame for the high CNG rates in Gujarat on the Centre.

"Gujarat is totally dependent on imported LNG to meet its gas requirements. CNG rates in Gujarat will go down by as much as 30% if Centre allocates cheaper D6 gas to the state," he said.

Experts, however, argue that the highest VAT rate on CNG in Gujarat, a state which likes to project itself as a gas-based economy, is simply not acceptable. State government officials, though, point out that the Centre too charges 14.42% Central Excise duty (including 3% education surcharge) on gas. However, the excise duty is uniform across the country.

It is worth mentioning here that CNG prices in Ahmedabad, which have already gone up in the past few months, are projected to increase to Rs46-47 per kg by March 2012, and touch Rs50 per kg by June or July next year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

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