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Applicabilityof vat on imported item

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Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 Sir, We are a public sector undertaking. We tendered to import consumable chemicals for our factory. A local firm who is an authorised agent of a foreign firm had quoted for supply of the item in Indian Rupees directly importing from his principal but charges 5% VAT. Whether VAT is applicable on an imported consumable (without any value addition) in India?

CA UMESH DULAL

CA UMESH DULAL (Expert)
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07 August 2013 If you are importing the goods under your IE code, then no vat is applicable.

If you have purchase it from the agent and agent is registered dealer and issues the invoice in its name (under TIN of the state), then he has correctly charged vat on sale.

From you question, it appears that the Agent secures order in India, imports in his name and makes invoice in his name. If it is true, the agents has rightly charged vat on sale

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