From

Thiru T.Jacob, IAS,

Commissioner of Commercial Taxes,

Ezhilagam, Chepauk, Chennai 5

To

Indian Engineering Agencies,

No:6, State Bank Street,

Anna Salai, Chennai 600 002

Sir,

Sub: TNVAT Act 2006 – Rate of tax clarification under TNVAT Act 2006 - Rate of tax on imported goods and exempted goods –requested – reg

Ref: Letter dated 4/1/2007 from Tvl. Indian Engineering Agencies, Chennai 600 002

Tvl.Indian Engineering Agencies, No:6,State Bank Street, Anna Salai, Chennai 600 002 have requested rate of tax clarification under the TNVAT Act 2006 for exempted and imported goods under CST Act.

It is clarified that the goods exempted under TNVAT Act 2006 are exempt under CST Act also and the goods imported from other countries are liable to be taxed at the appropriate rate for the goods under TNVAt Act 2006 except sugar, textiles and tobacco products if imported are taxable at 4% vide Entry No 11 to II schedule to the TNVAT Act with effect from 1.1.2007. No input tax credit is allowable on these goods ie. second schedule goods.

Sd/-G.Shanmugam,

for Commissioner of Commercial Taxes