08 October 2011
In case of Civil Contractor, if Contractor is located in Hyderabad (Andhra Pradesh) & purchases Ply for Construction/ Works contract purpose & pay Laocal AP VAT @ 14.50% on Purchases Value. If he wish to pyrchases from other state, than he have to pay CST @ 2% only on ply (with C-Form). Now question is that whether he is liable or not to pay difference VAT liability i.e. 12.5% (14.5%-2%) as per AP VAT Act in Hyderabad?? And second que is that if he paid Local VAT @14.5%, than he is eligible for set off of Input VAT as he is civil contract & pay WCT (Output VAT) at the time of work done??
CAclubindia
