Vatapplicablity

Others 885 views 6 replies

whether VAT is applicable on sale of STONE DUST???

Replies (6)

For which State.

   Yes,for anything which is not mentioned in the exempted list. Stone dust is not in such list in any state. So, it is taxable...mjk

thnks sir,

i hv a client who is purchasing stone dust but the seller doesnt charge VAT on such sale.

Furhter our client have a contract with seller that he (seller) will provide him (client)  the stone dust which included the transportation, loading as well as unlaoding charges too.

However, he is raising a bill by mentioning transportation charges for the same. And the same has been accepted by our client.

First our client recording such purchases as purchase of stone dust. But now they are recording it as frieght charges.

so what are the consequences oru client will face in both situations??? 

it is selling in KOLKATA

  This stone dust is used for making hollow and solid cement blocks. It is an essential raw material.Stone crushers who produce lot stone dust as a by-product also can not escape. Therefore it is better to acount its purchase and sale properly.Accounting its purchase for some period and then calling it as transport charges only won't be accepted.In most of the states there is no exemption on freight ,which means the lorry freight will be treated as the price of the stone dust.By this method the seller may escape,but, the buyer can not.If the seller is unregistered then the buyer has to charge VAT on the dust purchased and pay to the govt. This collected tax can be taken as input tax  credit......mjk

thnx sir this would really help me a lot


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