THE KERALA ELECTRIC TRADES ASSOCIATION
(Registered under the Travancore-Cochin Literary, Scientific and Charitable Societies-Registration Act of XII of 1955 with S.No.ER.350/81)
P.B.No. 2430, CHITTOOR ROAD, ERNAKULAM, KOCHI-682 016, KERALA ,
PHONE : 0484 –2378971, 3299246 Fax : 0
484 – 4030419
EMAIL : mail@electricalskerala.com
 
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We have pleased to inform you that one of our member Mr. K.J.Baby of M/s E.V. Electricals, Kumbanad, Thiruvalla has received a favorable order from the Kerala Sales Tax appellate Tribunal, Thiruvananthapuram in his appeal against the Additional Sales Tax Officer III, Thiruvalla for having rejected his book of accounts and completing assessment on the basis of "Best of Judgment ".

This order very well proves that it is possible to achieve victory over such frivolous acts and that one should have the determination for that. This only goes to show that it is high time that such provisions are repelled. we have a copy of the judgment with us. If you have to deal with similar instances you may write to us for a copy of the judgment.

SALES TAX CODE OF ELECTRICAL GOODS

Due to the recent amendments in Sales Tax laws, the submission of monthly return in Form No.9 is, become complicated job and it is really impossible to submit various forms for claiming exemption, reduction etc. For member's information, we furnish below the sales tax code of electrical and other allied goods, which may help the member traders to fill the Form No.9.

Sl. No.

Name of Goods

Commodity Code No.

Schedule No.

Point of Sale

Rate of Tax %

(1)

(2)

(3)

(4)

(5)

(6)

1

Electrical goods, instruments, apparatus, appliances, hotplates, lighting bulbs, electrical earthenware, porcelain and all other accessories and components parts either sold as a whole or in parts (other than those specifically mentioned in this schedule)

54 (i)

I

Ist

8%

2

Fan, Grinders, Mixers, Cooking ranges, Water heaters

54 (ii)

I

Ist

12%

3

Electrical Wiring Cables

54 (iii)

I

Ist

12%

4

Varnish, Putty

103

I

Ist

15%

5

Transformer Oil

106

I

Ist

24%

6

Pvc Pipes, Polyster Self Adhesive &, Insulation Tape

113

I

Ist

12%

7

Rubber Products-Rubber mats, Gloves

125

I

Ist

12%

8

Government supply

SRO 1091/99

I

Ist

4%


Proceedings Of The Commissioner, Commercial Taxes, Thiruvananthapuram.
Present: Sri. John Mathai IAS

Sub: KGST Act-rate of tax on cable and varnishes - clarification under section 59 A - Issued:- 

Ref: Application dt. 02-06-2000 from the Kerala Electric Trades Association, Kochi.

Order No. C5.31196/00/CT Dated 01-03-2001

  1. The Kerala Electric Trades Association, Kochi has sought clarification under section 59A of the KGST Act on the following points:

    (i) Which are the items covered by SI. No. 54 (iii) of the first schedule to the KGST Act? Is the rate of 12% applicable only for house wiring cables or will that apply for types of cables which are needed to carry current upto 110 kilovolt?

    (ii) What is the rate of tax applicable for varnishes which are used exclusively for electrical motor winding and putty used for electrical cable jointing?

  2. Sri. EV George and Sri. K. Jayaprakash, Members of the Association appeared and they were heard. They argued that "Wiring Cable" could mean only house wiring cables which will includes only PVC insulated copper conductor wiring cable as per IS 694 of size 1 Sq. mm to 4 Sq.mm. Underground cable, welding cable, flexible and control cable used in industrial switch boards, telephone cables, coaxial cables, instrumentation cables etc. fall under different classification. As regards, varnish it was argued that varnishes exclusively used for circuit boards, transformer oil tanker, motor, etc. cannot be classified along with paints and polish under the general entry relating to paints but it can be classified only as electrical goods and therefore the rate 8% alone can be made applicable.

  3. As regards 'Wiring Cables' clarification had already been issued as per the order No. C5.46872/00/CT dt. 05-01-01 that the term wiring cables used in entry 54 (ii) of the first schedule does not restrict its application to house wiring cables and that it would include cables used for industrial wiring. It was also clarified either as electrical goods under entry 54 (i) or under other different entries:

    1. Power cables as per IS. 1554
    2. Three core flat cables and winding wire with PVC insulation
    3. Co-axial cable for cable TV Networks
    4. Automobile cables and auto battery cables
    5. Computer network LAN cable
    6. Telephone and switch board cables
    7. Jelly filled telephone cables
    8. Optic Fiber Cables

    Item (I), power cables as per IS. 1554 is ised for heavy power transmission for underground purposes. ACSR Conductors mentioned in entry 54 (iii) of the first schedule will cover only, Aluminum conductors used for 11 KV lines and will not cover underground cables. So power cables as per IS. 1554 can be classified neither as electrical wiring cables nor as ACSR Conductors. It can therefore be classified only as electrical goods falling under entry 54 (I) taxable @ 8%.

    Item (2) "Three core flat cables and winding wire with PVC insulation" are used for submersible pump winding and connections. Winding wire with PVC insulation are used only for winding motors. They can therefore be classified only as electrical goods falling under entry 54 (i) of the first schedule taxable at 8%.

    Item (3) Co-axial cable for TV network and item (5) "computer network LAN cables" were clarified as falling under electronic goods, falling under electronic goods, falling under entry 55 of the First Schedule liable to tax @ 8%.

    Item (4) Automobile cables and Auto battery cables were clarifies to be falling under item 135 of the first schedule, namely, "spare parts and accessories of motor vehicles etc" taxable @ 8%.

    Item (6) "Telephone and Switch board cables", Item (7) "Jelly filled telephone cables" and Item (8) "optic fibre cables" were fall under "Telecommunication apparatus not falling under any other entry in the schedule, vide entry 152 of the first schedule taxable at 8%.

  4. As regards point (ii), item 54 (i) the Ist schedule to the KGST Act reads:-
    "Electrical goods, instruments, apparatus, appliance, hotplates, lighting bulbs, electrical earthenware. porcelain and all other accessories and component parts either sold as a whole or in parts (other than those specifically mentioned in the Schedule")

    Applying the principle of "ejusdem generis" only the commodities of the nature enumerated to the entry, ie., goods the use of which cannot be had without the application of electrical energy, can be brought under the preview of that entry Further entry 103 of the First schedule, namely,

    "Paints, colours, laquers, varnishes, pigments, polishes, indigo, dyes, enamel, putty, baleoil, turpentine oil, wood preservation oil (primers and thinners)"

    Specifically covers varnishes and putty. The entry does not exclude varnishes used for circuit boards, transformers etc., So varnishes of all kinds, irrespective of the use to which they are put, will fall under entry 103 of the Ist schedule liable to tax @ 15% from 01-04-2000 onwards.

  5. The two points referred to me are clarified as above.

Sd/-

Commissioner

                                /Approved for Issue/

Sd/-

Deputy Commissioner (General)

To,

Kerala Electric Trades Assocoation
PB. No. 2430, Chittoor Road (South)
Kochi - 682016

 

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