Partial rebate under section 14 of Karnataka VAT
We are mfg.of Pig Iron and we are purchasing Liquid Oxygen & Nitrogen and we are deducting under Partial Rebate U/s 14 of KVAT act and the rate of deduction is 4%. my question is whether the above mentioned goods are eligible for partial rebate or not if eligible what is the percentage to be taken. Secondly Liquid oxygen & Liquid Nitrogen(used in Pig Iron Blast furnace &De dusting Units) is covering under Sec.11 (6) (Input tax restrictions). kindly reply to my mail id :jeelanbashas @ rediffmail.com
Mr Jeelan Basha,
Sec 14 is relating to special rebating. The goods covered include petroleum products like LPG, Naptha , furnance oil , kerosene oil.
Oxygen an Nitrogen are used in manufacture of Pig Iron and not used as fuel , ( correct if i am wrong technically). Hence Sec 14 - Special rebating would not apply to Liquified oXygen Aand Nitrogen.
Partial Rebate u/s 17 will be applicable only when you have sale of exempted and taxable goods or interstate stock transfer. You need to clearly mention the facts of your case for us to give our opinion.