Diffrence amount of vat & cst payable
This query is : Resolved
CA. RAVI N.
(Querist)
08 October 2011
In case of Civil Contractor, if Contractor is located in Hyderabad (Andhra Pradesh) & purchases Ply for Construction/ Works contract purpose & pay Laocal AP VAT @ 14.50% on Purchases Value. If he wish to pyrchases from other state, than he have to pay CST @ 2% only on ply (with C-Form).
Now question is that whether he is liable or not to pay difference VAT liability i.e. 12.5% (14.5%-2%) as per AP VAT Act in Hyderabad??
And second que is that if he paid Local VAT @14.5%, than he is eligible for set off of Input VAT as he is civil contract & pay WCT (Output VAT) at the time of work done??
Now question is that whether he is liable or not to pay difference VAT liability i.e. 12.5% (14.5%-2%) as per AP VAT Act in Hyderabad??
And second que is that if he paid Local VAT @14.5%, than he is eligible for set off of Input VAT as he is civil contract & pay WCT (Output VAT) at the time of work done??
ACMA Obulirajan R
(Expert)
08 October 2011
1. He is not liable to pay differential VAT as his purchase was inter state purchase with C Form
2. If the assesse opt for Composite tax then he cannot take input tax credit on local purchases.
2. If the assesse opt for Composite tax then he cannot take input tax credit on local purchases.
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