Andhra Pradesh VAT

• Team Antworks

VAT rates in Andhra Pradesh vary according to the product being traded, with different Schedules of the AP VAT Act containing different rates. The basic premise of the VAT Act is to ensure that basic commodities do not attract any VAT, thereby keeping the needs of the general population in mind. Commodities like books, manual agricultural instruments, curd, maize, fresh fruits and vegetables, meat, plantain leaves, etc. are exempted from VAT under Schedule I of the Act. Close to a 100 items are mentioned under this Schedule.

Articles mentioned under Schedule III, IV and V are entitled for VAT, ranging from 4% to 70% in some cases. Commodities under Schedule III attract a VAT of 1%, with some of the major items under this category being jewellery, precious stones, precious stones and bullion.

Goods under Schedule IV of the ACT are charged a VAT of 4%, with some of the popular items in this list being automated agricultural instruments, SIM cards, patents, beedi leaves, coffee, pesticides, ice, microphones, umbrellas, etc., with over 125 commodities included under this schedule.

Commodities under Schedule VI attract the highest VAT, ranging from 22.5% to 70%. Some of the items in this list are liquor, which has to pay 70% VAT, petrol and aviation fuel which pay 33%, diesel which pays 22.5% and tobacco which pays 25% VAT. The high VAT on these products has been commissioned keeping in mind the overall health and wellbeing of the environment and the people of the state.

All other items in the state which are not mentioned in the above schedules need to pay a VAT of 12.5% under Schedule V

Frequently Asked Questions:

1. Who imposes and collects VAT in Andhra Pradesh?A. VAT in Andhra Pradesh is levied and collected by the Department of Commercial Taxes of AP.
2. What happens if a dealer/trader fails to register a business on time?A. In the event of an individual failing to register his/her business, a fine of Rs 5,000 will be imposed after the due date. The penal amount varies according to the business in question.
3. Are unregistered dealers who are not eligible for VAT expected to pay any tax?A. Yes, such unregistered dealers need to pay 1% tax on their total taxable turnover.
4. How can one claim a refund on the VAT paid?A. Individuals eligible for a refund can claim it by filling Form 510, 510A or 510B (as per the need) and submit it to the relevant authorities.