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Cot doubt

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Venugopal

Sr. Accounts Manager

21 Points Posted on 11 December 2012

Dear Sir,

We are in Karnataka VAT under COT (Works Contract - Railway contracts)

We are in COT and we are planning to purchase cement from Andra Pradesh for CST2%.

Railway will deduct 5% TDS from us for all UCC.

Wheather additional VAT liability on purchases outside Karnataka is applicable on us.

Cement is taxable at 14.5% in Karnataka

We are Purchasing against C form.

Wether I have to pay additional liability on such purchases 14.5% - 2%CST paid - 5% TDS deducted by railway.

I know it is applicable when we are purchasing for CST14%

Wether such liability is need to pay on purchase against C form also.

Kindly give me your valuable answer.

Thanking you

Venugopal D

Replies (1)

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 28 August 2013

Mr Venugopal,

This reply is delayed. However,I give you these point on the query posed by you. 1) The TDS should be 4% only, not 5%. You may get it rectified. 2) For your interstate purchase of cement, when you are in COT scheme, is governed by Sec 15(5)(a) of KVAT Act 2003.On the purchase value you have to add your normal gross profit to estimate the sale value. Then deduct that amount from the total receipts. The estimated sale value of cement is chargeable @ 14.5% VAT and the balance of receipts @ 4%.It is same whether you buy with or without 'C' form.......mjk