VAT In Uttar Pradesh

On all sort of goods and commodities earlier there was a sales tax applicable on it. However government implements a new way of generating revenue via value added tax or VAT. This is a simple method of multiple taxes on an individual product. There are varieties of Indian taxes such as income tax, cess tax, finance tax and house tax etc. There are total 28 states and 7 union territories in India. Value added tax is applicable on all the states and territories however there is a little variation in value added tax in different part of the country.

There are various tax act as per the state legislation law that are different from state to state. Uttar Pradesh is the largest state in India the government of Uttar Pradesh has drafted an exclusive value added tax law that is termed as “The Uttar Pradesh Value Added Tax Act, 2008” that is passed by Uttar Pradesh legislature in 2008. This value added tax came into existence with effect from 1st January 2008. This works under the guidance of Uttar Pradesh State tax board.

The goods that are exempted from the Value Added tax list are:

• Agricultural Products- All the manually operated or animal driven irrigation equipments are free from the list.
• Aids and implements used by handicapped persons.
• Books and periodicals & journals including Braille books, maps, chart and globe.
• Cotton yarns and silk yarns.
• Used motor vehicles.
• Wooden crates.

• Word processing machine.
• Microphone
• Multimedia Speaker
• IT software or any media
• Radio communication receiver
• Electronic calculator.
• Switches, connectors, relays and electronic fuses.
• Transmission apparatus.

• Copper ores and concentrates.
• Nickel ores and concentrates.
• Uranium and thorium ores.
• Precious metal ores and concentrates.
• Ammonia
• Cyclic hydrocarbons
• Silicates, commercial alkali metal, silicates of sodium, sodium metasilicates, sodium metasilicates
• of potassium, Magnesium Trisilicate.

• Gold, silver and other precious metals, articles of gold, silver and bronze.
Precious and semi precious metals such as diamonds, emeralds, rubies, pearls and Sapphires whether they are sold loose or as forming part of any article in which they are Set.

In Uttar Pradesh there are several goods and commodities that are taxed as per the central government laws. The VAT on the products such as petrol is 26% that is same all over the country except Jammu and Kashmir and some union territories. Value added tax on arms and ammunition is 20%. Diesel is sold at the tax 21%. Natural gas other than compressed Natural gas (CNG) when sold to registered dealer for use in the process of manufacture. Spirits and spirituous liquors of all kind including alcohol is applicable at the tax of 32.5%.

The Uttar Pradesh VAT structure is transparent in nature. All the natural resources that are found in the state have different VAT structure as per the energy resource law of the state. Commissionerate of the Uttar Pradesh tax department is the support body that takes care of tax revenue in the state.

• Uttar Pradesh VAT Rules

• The Value added Tax Act Document in PDF Format