Vat on iron goods in gujarat

    Mr. Anuj,

   If the price of Rs30/-kg is inclusive of VAT it will have Rs3.64 as VAT. You have to collect VAT on your sales of scrap @ 14%.On Rs31/- it comes to Rs4.34/-Kg. So you will have to pay the difference of the two i.e.Rs0.70/- per kg.In otherwords , you collect VAT @ 14% on your sales(output tax),and while filing returns deduct what you have paid on purchases(input tax) and pay the balance amount..

MJK