Rate of tax on "Overhead water storage tanks" - Clarification - VAT - Delhi - No. Enf/survey/2010/1049-51

Rate of tax on "Overhead water storage tanks" - Clarification DEPARTMENT OF TRADE TAXES (ENFORCEMENT BRANCH) 12th FLOOR, VYAPAR BHAWAN I.P. ESTATE, NEW DELHI-110 002. Dated : 22.2.2010 No. Enf/survey/2010/1049-51.- Enforcement Branch of the department had gathered information that most of the dealers, who are engaged in the manufacturing / trading of overhead water storage tanks are charging VAT @ of 4% inspite of the fact that this is an unspecified item and liable to tax @ of 12.5%. This under charging practice is being indulged on the pretext that overhead water storage tanks is household plastic item covered under Entry 165 of the III schedule or plastic and tin containers including barrels covered under entry 118 of the said schedule . On the basis of the above mentioned information, the Enforcement Branch carried out simultaneous survey of some dealers of the said trade to ascertain the correct position. The preliminary findings of the said survey has revealed that the dealers selling overhead water tanks of the trade name 'Syntex', 'Amitex', 'Polywell' etc. are charging VAT @ 12.5% which confirms the fact that overhead water storage tank is an unspecified item and is thus chargeable @ 12.5%. However, some dealers of overhead water storage tanks have been found charging VAT @ 4% (Now @ 5%), as explained above and causing revenue loss to the Govt. Keeping in view the above mentioned facts, as per approval of the Commissioner, Trade and Taxes, all the Ward/Unit authorities are requested to check the dealers of their respective wards/units who are engaged in the manufacturing/trading of overhead water storage tanks and make re-assessment of those dealers for the period during which they have charged VAT @ 4% instead of 12.5% on their sales. Sd/- (A.N. Gaur) VATO (Enf.)