Commercial Tax in Uttarakhand

To replace the cumbersome manual systems with citizen-centric, service-oriented processes, plus to establish a certain degree of standardization with respect to Commercial Tax (CT) administration, the department carried out a comprehensive automation drive as a Mission Mode Project under the National e-Governance Plan of Government of India. Therefore, the State Centre of National Informatics Centre was appointed as the nodal agency for application software development and providing technical assistance in setting up the necessary infrastructure for launching the e-Services. Hence, the automation has resulted in transparency, convenience and cost effectiveness.

• Acceptance of return and challans

• Refunds

• Appeal

• Issue of Statutory forms and other forms

• Enforcement and recovery of taxes

• Assessment and Tax Audit

The Uttarakhand Value added Tax, 2005 forms the legal framework of regulations governing regulating VAT in Uttarakhand. It came into force from 1st October 2005. As per reports, the Uttarakhand government collects over Rs. 3500 crores because of implementation of VAT across the state.

Uttarakhand VAT rates

The tax paid is levied on dealer’s turnover where rates not above the maximum rate is listed under section 15 of the Central Sales Act, 1956 vis-a-vis declared goods. However, the following list of items are exempted from VAT under Schedule I. Since the list is huge, few of the items are listed:

• Chhilka

• Agricultural implements

• Cotton and silk yarns

• Bamboo

• Baskets

• Aquatic feed

• De-oiled rice polish

• Balanced poultry feed

• Cattle fodder

• Wheat bran

But, on the following goods the tax is payable at 5% at every point of sale under section IIB.

• Castor oil

• Acids

• Bitumen

• Patent

• Utensils

• All types of yarn

• Metal castings

The following rates are applicable under schedule IIC

• Aviation turbine fuel 20%

• Spirits of all kinds at 32.5%

• Natural gas at 20%

Also, under schedule IV, rifles pistol and ammunition are exempt, provided that the goods are sold to Armed Force members. Therefore, no tax is payable on the purchase or sale of goods under Schedule I. Besides, the goods that are listed under schedule II (A), the rate of tax is 1% and 5% for goods specified in Schedule II (B).

You can download the e-return forms from the official website of commercial tax department of Uttarakhand. Post which the required details have to be filled and submitted.