New 4% VAT for iPods, MP3 players in TN

The Commercial Taxes and Registration Department has issued an order on the
VAT charges. VAT for information technology products namely iPods, MP3 and MP4
players have been brought down to four percent, from 12.5 percent, throughout
Tamil Nadu. The notification has come to effect from April 1, 2009.

The notification-I of the annexure issued by the Principal
Secretary/Com­mis­sioner of Commercial on February19, 2009 stated, “In exercise
of the powers conferred by Sub-Section (1) of Section 30 in the Tamil Nadu Value
Added Tax Act, 2006 (Tamil Nadu Act 32 of 2006), the Governor of Tamil Nadu
hereby makes a reduction in rate from 12.5 percent to four percent in respect to
tax payable under the said Act by any dealer on the sale of IT products, namely
i-pods, MP3 and MP4 players. This notification shall be deemed to have come into
force on April 1, 2009.”

With this, the prices of MP3 and MP4 players, and iPods are expected to come
down in the state.