Friday, March 11 2005 20:06 Hrs (IST) - World Time -

Bangalore: Karnataka Government has brought down the tax rates for computer software and IT products to four per cent under the new VAT regime effective from April.

"We have classified about 30 electronics and computer products including software at four per cent," a source in the Commercial Taxes department told sources in Bangalore.

The Domestic IT industry was up in arms over high sales tax rates of 13.8 per cent imposed by Deputy Chief Minister Siddaramaiah, triggering purchases of IT products from other States.

Siddaramaiah in his budget speech last June had clarified that the 12 per cent tax, with an additional 1.8 per cent was to be effective till March, helping the State mobilise about Rs 85 crores, and would be uniform with tax rates nationally at four per cent from the next fiscal.

The source said, a final notification of the new effective VAT rates would be released by the end of this month.