GOVERNMENT OF ANDHRA PRADESH

REVENUE (CT-II) DEPARTMENT

Memo.No.38999/CT-II(1)/2008-3 Dated:1-10-2008.

Sub:- APVAT Act, 2005 - Request for clarification on Entry 100 issued in G.O.Ms.No.818, dt.30-6-2008 - Regarding.

Ref:-1. G.O.Ms.No.818, Rev(CT-II) Department,dt.30-6-08.

2. From AP Scientific Dealers Association, letter,dt.Nil.

3. From FAPCCI, Lr.No.798, dt.24-7-2008.

4. From All India Yeast Manufacturers Association, representation dt.16-7-2008.

5. Govt.Memo.No.38999/CT.II(1)/2008-2,dt.11-8-08.

6. From the FAPCCI, Ref.No.875, dt.13-8-2008.

==X==

In the G.O.first cited notification was issued amending the entry 100 in Schedule IV of APVAT Act, 2005, substituting the heading of the entry as "The following goods when sold as industrial inputs". The Note 6 of Entry 100 under Schedule-IV prescribing possession of declaration to that effect has been kept in abeyance vide reference 5^th cited.

2. The FAPCCI in their letter cited, have represented that the heading of Entry 100 substituted vide G.O.first cited may lead to gross misinterpretation and endless disputes and it is essential to allow the industrial inputs @ 4% and requested the Government to issue clarification in this regard.

3. In view of the above, it is to clarify that the note 6 prescribing the declaration Form under Entry 100 is kept in abeyance vide Memo.No.38999/ CT.II(1)/2008-2, dt.11-8-2008 since the Government intends to apply 4% rate to all the goods listed in Schedule IV without any restrictions to keep the spirit of VAT System, i.e., simplicity and transparency intact, the industrial inputs under Entry 100 of Schedule - IV of the APVAT Act shall be taxed @4%, till further orders, as they were taxed prior to issue of G.O.Ist cited, and the consequential amendments made in Act.No.28 of 2008.

G.SUDHIR

PRINCIPAL SECRETARY TO GOVERNMENT