Taxability of Rexine cloth. - VAT - Delhi - 09

GOVERNMENT OF NCT OF DELHI DEPARTMENT OF TRDE AND TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 No. F 7 (420)Policy/VAT/2012/PF/349-355 Dated: 12/07/2012 CIRCULAR NO. 9 OF 2012-13 Subject: Taxability of Rexine cloth Inputs have been received on ambiguity in the trade circles regarding taxability of Rexine cloth under the Delhi Value Added Tax Act, 2004 (DVAT Act). In this regard, it is clarified that Rexine cloth is currently taxable @ 5% and is covered under the entry no. 114 of the Third Schedule appended to the Act, as has been determined by the Commissioner, VAT, in exercise of his powers under section 84 of the DVAT Act , through the determination reference no. 302/CDVAT/2011/46 dated 26.03:2012. The determination order discusses the issue of this taxability in detail. Similar ambiguity and unwarranted confusion is also reported to be prevailing among the traders about the rate of tax on PVC flooring. It is hereby clarified that PVC flooring i.s taxable @ 12.5%. All the Assessing Authorities are advised to examine any issues relating to the taxability of these items accordingly. (Rajendra Kumar) Commissioner, Value Added Tax