Classification of goods - levy of VAT @ 4% or taxable @ 12.5% - ...

Court Rules Handicrafts Can Use Machinery and Still Qualify for Lower VAT Rate Under DVAT Entry No. 128.

April 29, 2015

Case Laws     VAT and Sales Tax     HC

Classification of goods - levy of VAT @ 4% or taxable @ 12.5% - Handicrafts - no hesitation in concluding that a product in order to qualify as “Handicrafts” for the purposes of application of entry no.128 of the third schedule to DVAT, must have been made “predominantly by hand” and it would be inconsequential if some part of the process involves use of some machinery. - HC

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