G.O. Ms. No. 9, Exemption from Payment of Value Added Tax under the Tamil Nadu Value Added Tax Act, 2016
The Commercial Taxes and Registration Department, Government of Tamil Nadu, issued G.O. Ms. No. 9, Commercial Taxes and Registration (B2), dated 22nd January 2016, exempting value added tax on sales of products manufactured by training-cum-production centres run by GandhiNiketan Rural Welfare and Development Trust, T. Kallupatti, Madurai District. The exemption is deemed effective from 1st May 2012 through 30th April 2017, subject to the condition that no Input Tax Credit is allowed on tax paid by the trust on its purchases.
What the notification does
G.O. Ms. No. 9, Commercial Taxes and Registration (B2), dated 22nd January 2016, was issued by the Commercial Taxes and Registration Department, Government of Tamil Nadu. Acting under the Tamil Nadu Value Added Tax Act, 2006, the Governor of Tamil Nadu granted a tax exemption for specified sales connected with GandhiNiketan Rural Welfare and Development Trust.
The exemption applies only to tax payable under that Act on the sale of products manufactured by the trust's training-cum-production centres at T. Kallupatti in Madurai District.
Who is affected
The exemption in G.O. Ms. No. 9 directly concerns GandhiNiketan Rural Welfare and Development Trust and the products manufactured by its training-cum-production centres. It may also be relevant to persons dealing with the tax treatment of sales of those products during the stated period.
The Gazette text does not create a general exemption for other trusts, training centres, manufacturers or products. It identifies one trust and its training-cum-production centres.
The notification does not contain provisions concerning land ownership, land classification, planning permission, registration of property, building approval or transfer of property. Based on the supplied text, it does not directly affect a property buyer or landowner merely because they are buying, selling or holding land in Tamil Nadu.
Key provisions
- Value added tax payable under the Tamil Nadu Value Added Tax Act, 2006 is exempted on sales of qualifying products.
- Qualifying products must be manufactured by training-cum-production centres run by GandhiNiketan Rural Welfare and Development Trust, T. Kallupatti, Madurai District.
- No Input Tax Credit is allowed on tax paid by the trust on its purchases.
- The exemption is deemed to have come into force on 1st May 2012.
- The exemption remains in force up to and including 30th April 2017.
Practical significance
G.O. Ms. No. 9 is a limited, time-bound value added tax exemption. Anyone assessing a sale must check whether the product was manufactured by the identified centres, whether the sale fell within the stated period, and whether the condition denying Input Tax Credit was followed.
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Common questions
Does this notification affect the purchase or sale of land in Tamil Nadu?
The Gazette text does not address land ownership, property transfers, registration, planning permission or building approval. It concerns value added tax on products manufactured by specified training-cum-production centres.
Which organisation received the tax exemption?
The exemption covers sales of products manufactured by training-cum-production centres run by GandhiNiketan Rural Welfare and Development Trust, T. Kallupatti, Madurai District.
For what period was the exemption available?
The exemption is deemed to have taken effect on 1st May 2012 and remained in force up to and including 30th April 2017.
Could the trust claim Input Tax Credit on its purchases?
No. The exemption was subject to the condition that no Input Tax Credit would be allowed on tax paid by the trust on its purchases.
