VAT on cellphone chargers, footwear, solar panels slashed

The commerci­al taxes department issued notifications on Tuesday, slashing the Value Ad­d­ed Tax (VAT) on mobile phone chargers, footwear, manufactured sand, wick stoves, industrial cables, solar panels and solar inverters.

Chief Minister Siddaramaiah had proposed to decrease the levy on these items in his budget proposals for the financial year 2015-16, with effect from April 1 (Wednesday). These commodities may cost less in the coming days if manufacturers decide to pass on the benefit to consumers.

Prices of tobacco items, including cigarettes, cigars, gutka and other manufactured tobacco products, will go up as the VAT on them has been hiked from 17 to 20 per cent. Siddaramaiah had also announced a hike in the excise duty on liquor. But the hike will be effected only from the start of the excise year, July 1, according to sources.

Another notification issued by the commercial taxes department stated that VAT exemption on paddy, rice, wheat, pulses, flour and suji (semolina) of rice and wheat, maida of wheat would continue till March 31, 2016.

N Prakash, Inspector General of Registration and Commissioner of Stamps, said that the department would start working on introducing the online system of registration of lease deeds and agreement of sale, as announced in the 2015-16 budget. The chief minister had also announced making a provision for online filing of leave and licence agreements, true copies of court orders, decrees and mortgages by way of deposit of title deeds sent by banks and other financial institutions.

“We have already done some groundwork on introducing the online system. But nothing has been finalised as yet. Steps will be taken to introduce it at the earliest,” he stated. But the announcement about levying stamp duty on chit agreements, limited liability partnership instruments and levying ad valorem registration fee on certain agreements of sale will come into effect from April 1.
DH News Service