Value Added Tax in Assam – Rates & Registration and Return Filing Procedure

Value Added Tax was introduced in India in 2005 after the passing of the Report of Indirect taxation Enquiry Committee, 1978. The implementation of VAT in India helped the economy in removing monetary barriers like double taxation of Central Sales Tax. Like other states, Value Added Tax in Assam came into force on 1st May 2005.

Under this Act, every kind of dealer, trader and business is liable to pay the VAT in Assam. Moreover, individuals liable to pay VAT must know the registration and payment procedure.

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What Is Value Added Tax?

The inception of VAT is considered a significant milestone with a multi-point destination-based system of taxation. It is a form of indirect tax and is borne by an ultimate buyer of finished goods. VAT in different states in India prevented cascading effects in this taxation system through set-off tax rules. In addition to this, VAT helped the export industry to grow with the introduction of a zero rating tax on export sales in India.

This context highlights the key details of VAT in Assam, like the procedure for registration, payment of VAT and filing of return.

What Are the VAT Rates for Goods or Services in Assam?

There are near about 100 products that fall under the exempted category, which is in Schedule I. Here’s the list of goods and services falling under different Schedules and their respective VAT rates in Assam:

Schedules	Applicable Goods or Services	VAT Rates in Assam
Schedule I	Agricultural equipment and implement, books/copies/journal, national flag, betel nuts and leaves, charcoal, food supplies for aquatic or animal poultry	Exempted
	Clay lamps, buttermilk, silk and cotton yarn, coarse grains,
	Handloom fabrics, handmade musical instruments,
	Raw wool, firewood, fishnet, non-judicial stamp papers
	Sugar, tobacco, bamboo matting, etc.
Schedule II Part A	Copyright and patent, Automatic agricultural equipment, Bricks, steel, bamboo, cotton waste,	5%
	Chemical fertilisers, electrodes, Fried grams, coffee beans, insect repellants, bone meal, Beedi leaves
	Goods mentioned under Section 14 of the Central Sales Pure silk fabrics, printing ink, rail coaches, transmission towers
	3Glass bangles, plastic granules, writing instruments, hand tools, etc.
Schedule II Part B (IT-related products)	Permanent magnets, answering machines, LCD panels, electrical resistors, electronic/scientific calculators	5%
	IT software, computer systems
	Liquid crystal devices, optical fibre cables, transmission apparatus, etc.
Schedule II Part C (industrial raw materials and other packing materials)	Copper ores and concentrates, aluminium ores and concentrates, lead ores and concentrates, manganese ores, Tungsten ores and concentrates, etc.	5%
	Denatured ethyl alcohol, glycerol crude, and sulphur
	Phenols, benzole, xylol, naphthalene, etc.
	Copper sulphate, cyanides, cartons, oxides of boron, carton, etc.
Schedule III	Precious stones like diamonds, rubies, emeralds, etc.	1%
	Bullions, excluding silver bullions
	Gold ornaments, platinum, silver and items made up of silver
Schedule IV	Petrol	25.75%
	Crude oil	5%
	Diesel	16.5%
	Natural Gas	14.5%
	Lottery tickets	22%
	Tea	5%
	Biscuits	4%
	Furnace oil	5%
Schedule V	Works contract	14.5%
	Transactions on lease	5%
	Goods which are does not fall under the previous four schedules	14.5%
Schedule VI - Working Contracts mentioned as per Section 11(c) of the Act	Cranes installation	15%
	Printing and polishing	15%
	Railway coaches construction	20%
	Fabrication of structural work	20%
	Building construction and other civil works	25%
	Air conditioner or air cooler installation	20%

Who Should Pay VAT in Assam?

The incidence of tax under the Assam VAT rules and Section 7(6) of the Act specifies the liability of the following individuals to pay taxes based on the taxable quantum. However, there is no quantum bar for individuals in the case of the importer, contractor, casual dealer, non-resident dealer or agent.

Some other personnel to be liable to pay Value Added Tax in Assam are as follows:

Dealers who are responsible for paying tax during purchasing any goods
Businessmen or traders who operate from one place within the State
In the case of any other type of dealer who is incurring an annual turnover of Rs. 6,00,000 or more.
Lastly, traders and dealers registered under the Central Sales Tax Act, 1956 will pay the tax on the sales made intra-state.

How to Register for VAT in Assam Online and Offline?

Here is a step-wise guide to register for VAT in Assam online and offline:

How to Register for VAT in Assam Online?

Step 1: Visit the official portal of the Taxation Department of Assam. Select ‘e-Services’ and click on the 'e-Registration' link. Here, individuals can either select an online or offline registration process according to their convenience.

Step 2: The applicant needs to select the Registration Act, district and location of the business.

Step 3: Now, fill in the application form with correct details and upload the scanned documents such as passport photograph, PAN card, etc.

Step 4: After submitting the form, an acknowledgement is generated, which the applicant can use to track the registration status.

An Assessing authority will review this application, and confirmation of VAT registration is sent to the applicant's registered mobile number through an SMS. After receiving approval, one can take a print of a Registration Certificate by accessing ‘Track Status’ under e-Registration.

How to Register for VAT in Assam Offline?

Step 1: In this process, an applicant must download the form from this website for the Act under which he or she is registering.

Step 2: Manually fill in the form with a black ball pen. Scan it to upload it into the system.

Step 3: Select the ‘upload’ link and upload the scanned form and documents required for VAT registration in Assam. After this, the system will provide an acknowledgement number.

The remaining processes of registration approval and obtaining the Registration Certificate are similar to the one mentioned above.

Documents Required for Registration Process

The major documents that are required to upload or submit while opting for registration online or offline are as follows:

Address proof of the Directors
Memorandum of Association & Articles of Associations
Company PAN card or Individual PAN card
Copy of Partnership Deed
Certificate of Incorporation
Passport size Photograph
Rental Agreement or Lease Agreement, etc.

What Are the Process for Filing VAT Returns and Payment in Assam?

Through the Assam VAT online payment and filing portal, dealers and registered dealers or traders can process the e-filing and e-payment. The official site for processing the e-filing offers complete cyber security and involves simple procedures.

In the same way, the payment for Value Added Tax in Assam can be processed through a secured online payment gateway provided by the prescribed authority. Apart from this, the e-payment facility is available with reputed banking and non-banking facilities.

How Is VAT Different From GST in Assam?

Understanding the extensive VAT rates in Assam can be a daunting job, as there are inter-state and intra-complications. Hence, GST (Goods and Service Tax) Act, 2017 brought significant parity and uniformity in the rates of tax for different goods and services.

Moreover, the "one-tax, one nation" objective of the GST Act helped to remove the effect of double taxation and any fraudulent activity or evasion of tax. This indirect tax system offers advantageous facilities for traders like a composition scheme for small businesses, improved efficiency in logistics tax collection, and effortless online procedure with a single website.

This is all key information on Value Added Tax in Assam which will help an individual eligible for VAT registration or payment.

Frequently Asked Questions

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What will happen if the dealer fails to submit the return on time?

On failing to submit the return within the due date, the prescribed authority can charge a penalty of Rs.100 days from the day when the due date has crossed.