TAX RATES & CALCULATION OF TAXES

TAX RATES & CALCULATION OF TAXES

5. CONDITIONAL EXEMPTION TO DHABAWALAS, TANDOORWALAS OR LOHWALAS

Dhabawala, tondoorwala or lohwala are granted exemption under entry 31A of Schedule B. This is a conditional exemption and conditions are as follows:

• The total investment on the construction of the building, excluding the value of land, whether it is owned by him or a rented one, where dhaba, tandoor or loh is being run does not exceed Rs. 5 lakhs:
  • Old Buildings - in case of buildings constructed prior to 1st July, 2005, the value to be ascertained on Public Works Department rates as applicable on 1s July, 2005, as if the building has been constructed on 1st July, 2005;
  • New Buildings - in case of new buildings, the value to be ascertained on Public Works Department rates as applicable on the date of construction.

In india GST provides for compensation to States for loss of revenue on the recommendation of GST Council.

The value in both the cases to be certified by the XEN, Public Works Department of the area.

• No other business activities are carried on in the eating place.
• The seating capacity in the covered area shall not exceed 25 persons at a time.
• There shall be no air conditioner in the eating place.
• Rates of dishes served commonly shall be less than the lowest category rates of Haryana Tourism Restaurants in the district (to be certified by the Manager of the Haryana Tourism Restaurant, of the district).

Form Application for issue of exemption certificate under entry 31A of Schedule B appended to the Haryana Value Added Tax Act, 2003.
(i)	Name and address of the applicant	:
(ii)	Tax Payer Identification Number  if any :	:
(iii)	Full address of the place where Dhaba, tandoor or loh is located	:
(iv)	Value of the building where the establishment is located, as on,- (a)1st July, 2005 (if the building is constructed prior to 1st July, 2005) (b) date of application (in case of new building)	:
	Note: certificate to be attached from XEN, Public Works Department of the district/area
(v)	Seating capacity of the establishment in the covered area	:
(vi)	I, _________________ proprietor / partner of M/s _________________________ hereby certify, that I fulfil all the conditions prescribed under sub-rule (1) of rule 52A of the Haryana Value Added Tax Rules, 2003 and the rates of the dishes being served by me in the establishment do not exceed the lowest category rates of Haryana Tourism Restaurants in the district / area (a certificate to this effect issued by the Manager, Haryana Tourism Restaurant is enclosed). I further certify that I shall be preparing and serving Indian food preparations only which are ordinarily prepared by dhabawala, tandoorwala or lohwala.	:
Signature of the applicant along with  his relationship with the business

• The assessing authority on receipt of the application shall verify / conduct the enquiry and submit his report to the Deputy Excise and Taxation Commissioner of the district with his recommendations to grant exemption certificate, to him. The exemption certificate in the following form shall be issued by assessing authority, after approval by the district Incharge:

Certificate to be issued by the assessing authority

‘I, ______________ assessing authority _______________, have verified the facts given in the application of M/s _____________-- and I am satisfied that the applicant fulfills the conditions and the requirements as prescribed under sub-rule (1) of rule 52A of the Haryana Value Added Tax Rules, 2003, and is covered under entry 31A of Schedule B of the Haryana Value Added Tax Act, 2003. This certificate is valued upto _______________________.’

Date :                                                                                                                                           Signature of Assessing Authority                                                                                     Name of District

                                                                           Seal of the Assessing Authority

• Exemption certificate so granted shall be valid upto 31st March of the 3rd year next from the date of issue.
• Applicant shall be required to get exemption certificate renewed thereafter by submitting the application in the form referred above. The certificate so renewed shall be valid upto 31st March of next 3rd

6. LEVY OF ADDITIONAL TAX: SURCHARGE

5% surcharge shall be levied on tax payable by taxpayer.

However this surcharge would not be applicable on a retailer in lump-sum composition with the department.

Additional Tax on Declared goods

Aggregate of tax and the surcharge payable under this Act, shall not exceed in respect of the goods, declared to be of special importance (in inter-state trade or commerce under Section 14 of the Central Sales Tax Act, 1956 the rate fixed under Section 15 of Central Sales Tax Act, 1956.

Haryana VAT Rate	Surcharge @ 5%	Net effective Haryana VAT Rate Applicable
1%	1% x 5% = 0.05%	1.05%
4%	4% x 5% = 0.20%	4.20%
5%	5% x 5% = 0.25%	5.25%
8.8%	8.8% x 5% = 0.44%	8.44%
10%	10% x 5% = 0. 50%	10.50%
12%	12% x 5% = 0. 60%	12.60%
20%	20% x 5% = 1.00%	21%
25%	25% x 5% = 1.25%	26.25%

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