December 7, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Assam govt approves proposal to grant partial exemption on sale of ATF

Assam government has approved the proposal to grant partial exemption by way of payment of VAT at the rate of one percent on sale of Aviation Turbine Fuel (ATF) made to aircraft operating under Regional Connectivity Scheme (RCS).

Presently the VAT on ATF is 23.5 percent. The state cabinet meeting on Wednesday decided this partial exemption shall also be applicable to such aircrafts even when they provide air services to NON-Regional Connectivity Scheme (RCS) airports/airstrips.

The State Cabinet decided to rationalise and restructure the Advalorem levy to increase the total excise revenue collection. Advalorem levy constitutes about 95 percent of the total Excise revenue collection.

The state government has stated, “This move is in the light of fact that the rates of Ad-valorem levy in Assam in respect of the brand(s) being quite low compared to most of the states with the exception of Arunachal Pradesh • Such revisions will lead to growth in revenue resulting from up gradation of consumer preference, growth in the volume of sales and enhanced Ad-valorem levy rates. Additionally, there would be consequential growth in annual VAT collection also. The amendments will come into force from 10th of December 2021.

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