VAT Amendment Act Comes into Force

Madhya Pradesh VAT (Amendment) Act – 2009, which provides for hike in VAT rates on items belonging to Schedule II, has come into from today. The government has issued a notification to this effect.

In the wake of enforcement of the Act, VAT rate of the items belonging to Schedule II will go up from four percent to five percent. Nevertheless, the rate of VAT on declared goods will continue to remain four percent. These include 15 items including iron steel, coal etc.

As per the amendment, the rate of VAT on sabudana, green coconut (nariyal), pindkhajoor and solar equipments will come to zero percent from four percent. It means there will be no VAT on these items.

The rate of VAT on mobile handsets, telephone equipments etc. will increase from four percent to 12.5 percent.
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