VAT set off for RMC input materials

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Hi,

My queries might sound bit trivial as I am new to this domain.

Our company (a Mumbai based developer) has entered into contract with ACC to set up their RMC plant on our site. My queries are

a) What is the VAT % for RMC input construction materials (e.g. cement, sand, aggregates)? Is ACC eligible to get a full set-off for this VAT? 

b) We pay 12.5% VAT on RMC. Is there any mechanism for getting a set off for this?

c) I read somewhere that RMC is an excisable product (8%). What is the implication of this to the developer as well as to the vendor(say, ACC)?

thanks,

Som

Replies (7)
Originally posted by :som
" Hi,
My queries might sound bit trivial as I am new to this domain.
Our company (a Mumbai based developer) has entered into contract with ACC to set up their RMC plant on our site. My queries are
a) What is the VAT % for RMC input construction materials (e.g. cement, sand, aggregates)? Is ACC eligible to get a full set-off for this VAT? 
b) We pay 12.5% VAT on RMC. Is there any mechanism for getting a set off for this?
c) I read somewhere that RMC is an excisable product (8%). What is the implication of this to the developer as well as to the vendor(say, ACC)?
thanks,
Som
"

Originally posted by :som
" Hi,
My queries might sound bit trivial as I am new to this domain.
Our company (a Mumbai based developer) has entered into contract with ACC to set up their RMC plant on our site. My queries are
a) What is the VAT % for RMC input construction materials (e.g. cement, sand, aggregates)? Is ACC eligible to get a full set-off for this VAT? 
b) We pay 12.5% VAT on RMC. Is there any mechanism for getting a set off for this?
c) I read somewhere that RMC is an excisable product (8%). What is the implication of this to the developer as well as to the vendor(say, ACC)?
thanks,
Som
"


 

Originally posted by :som
"

Assessee can setoff the input tax (VAT on Inputs) against the VAT payable against the sale of goods as long as the output is sold. In case the goods are damaged or stolen then the input tax is to be reversed. So ACC can claim the VAT on the purchase of materials and setoff the same against the sale.

    

 

 

 

Hi,
My queries might sound bit trivial as I am new to this domain.
Our company (a Mumbai based developer) has entered into contract with ACC to set up their RMC plant on our site. My queries are
a) What is the VAT % for RMC input construction materials (e.g. cement, sand, aggregates)? Is ACC eligible to get a full set-off for this VAT? 
b) We pay 12.5% VAT on RMC. Is there any mechanism for getting a set off for this?
c) I read somewhere that RMC is an excisable product (8%). What is the implication of this to the developer as well as to the vendor(say, ACC)?
thanks,
Som

"


 

Originally posted by :som
"

Assessee can setoff the input tax (VAT on Inputs) against the VAT payable against the sale of goods as long as the output is sold. In case the goods are damaged or stolen then the input tax is to be reversed. So ACC can claim the VAT on the purchase of materials and setoff the same against the sale.

    

 

 

 

Hi,
My queries might sound bit trivial as I am new to this domain.
Our company (a Mumbai based developer) has entered into contract with ACC to set up their RMC plant on our site. My queries are
a) What is the VAT % for RMC input construction materials (e.g. cement, sand, aggregates)? Is ACC eligible to get a full set-off for this VAT? 
b) We pay 12.5% VAT on RMC. Is there any mechanism for getting a set off for this?
c) I read somewhere that RMC is an excisable product (8%). What is the implication of this to the developer as well as to the vendor(say, ACC)?
thanks,
Som

"


 

OK EVEN WE ARE FACING THE SAME PROBLEM


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