Our unit which is located at Karnataka procures Agricultural produce from Tamil Nadu.
As per APMC act Tamil Nadu, 1% cess is payable on notified agricultural produce brought from notified regions in Tamil Nadu.
Our supplier procures such produce from the Farmers in Tamil Nadu and sells to us (Principal to Principal basis) in Karnataka. However cess is neither paid by him nor recovered from us. Is it a Non compliance?
Pls advice!
CAclubindia
