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Andhra Pradesh VAT – APVAT Guide

Andhra Pradesh VAT

Andhra Pradesh VAT – APVAT Guide

The purpose of Andhra Pradesh Value Added Tax Act, 2005 is to provide for and consolidate the law related to levy of value added tax on the sale or purchase of goods in Andhra Pradesh and for related matters. The Commercial Tax Department of Andhra Pradesh that is in charge of the levy and collection of tax according to Andhra Pradesh VAT Act of 2005 forming the basis for VAT collection. The article elaborates on the different VAT rates for various goods, VAT return filing and the procedure for enrolling for VAT in Andhra Pradesh.

Andhra Pradesh VAT Rates

VAT rates in Andhra Pradesh differ according to the product being traded, based on schedules of the Andhra Pradesh Value Added Tax Act, 2005 with different rates. The basic premise of the VAT Act is to guarantee that basic commodities do not incur any VAT, thus keeping the needs of the population in mind. Commodities like books, manual agricultural instruments, curds, maize, fruits and vegetables, meat and plantain leaves and so on are subject to exemption from VAT under the Schedule I of the Act. Nearly a 100 items are mentioned in this Schedule.

The articles mentioned under Schedule III, IV and V are thereby entitled for VAT, ranging from 4% to 70% in certain cases. Commodities as recorded under Schedule III are charged a VAT of 1%, with reference to some of the main items under this category as being jewelry, precious stones, precious stones as well as bullion.

The goods under the Schedule IV of the  Andhra Pradesh Value Added Tax Act, 2005 are taxed a VAT of 4%, with certain popular items in this list being automated agricultural instruments, SIM cards, patents, leaves used in the production of beedis, coffee, pesticides, ice, microphones, umbrellas, and so on and with over 125 commodities included under the related schedule.

The various commodities related to Schedule VI are taxed the highest VAT, ranging from 22.5% to 70%. Some of the items included in this list are liquor for which has to be paid 70% VAT, petrol and aviation fuel for which 33% has to be paid, diesel for which one has to pay 22.5% and tobacco for which one has to pay 25% VAT. The higher VAT on these products has been commissioned bearing in mind the general health and security of the environment and the people of Andhra Pradesh.

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

Andhra Pradesh VAT Registration

Under the terms of the Andhra Pradesh VAT Act of 2005, each individual indulging in trade with an annual taxable turnover of Rs 10 lakhs and in excess and should register himself/herself. They will be registered as a VAT dealer and will be necessary to pay VAT on their business deals. Likewise, dealers and intermediaries who deal in trade on behalf of others are also expected to register themselves, despite their annual turnover being in excess of Rs 10 lakhs. Every registered individual according to Andhra Pradesh Value Added Tax Act, 2005 will be given a General Registration Number (GRN) and a Taxpayer Identification Number (TIN) to help them in the complete VAT process.

Click here to apply for Andhra Pradesh VAT registration.