A customer purchases the raw material(Quartz) from the supplier who has not paid royalty for lifting the Quartz from the mines. whether the liability of payment of royalty will fall on Customer since the supplier has not paid to state government. Please clarify my doubt.
Menu
Royalty
Replies (2)
Dear rajender
i think royaliy payment liability will not fall on the customer. Supplier will be liable for the same. But if you have made any contract regarding the same then it can be transfer to customer. I suggest you to put querry in expert on this site to get more clearity on the same.
The liability will depend on the terms of agreement between the customer and the supplier.
However, the mineral (quartz) can only be taken out of the mine after the royalty has been paid.
Recent Topics :
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
- AGM Defective Notice
- IMS Rejection of Sales and Sales return
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
Related Topics :
CAclubindia
