Ready mix concrete

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Archana (Querist)
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24 October 2013 Our supplier supply us ready mix concrete at construction site by charging excise duty and lumpsum amount of VAT

They issue us Retail Invoice

My question is should i need to pay VAT Under Gujarat Vat Laws???? and if yes at what Rate???

If i do not pay VAT what will be the consequences?????

CA UMESH DULAL

CA UMESH DULAL (Expert)
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24 October 2013 if your supplier is registered with VAT, he will raise the invoice with VAT and you need to pay the amount inclusive of VAT

if you do not pay VAT amount and pay only material's price, your supplier may not supply you the goods.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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24 October 2013 for the rate of tax ask the supplier to justify charging vat on lumpsum basis

it may be possible that he may have opted for composition scheme

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Archana

Archana (Querist)
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25 October 2013 ya sir they have opted composition scheme and charging 1% Vat

My question is now i am liable to pay vat or Not and if yes at what Rate under Gujarat Vat Law

CA UMESH DULAL

CA UMESH DULAL (Expert)
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25 October 2013 VAT is indirect tax and collected from the consumer so you are liable to pay VAT

Archana

Archana (Querist)
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25 October 2013 ok sir thank you
and at what rate @ 5% (4+1) or 15 % (12.5+2.5)

CA UMESH DULAL

CA UMESH DULAL (Expert)
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25 October 2013 1% as it is charged by vendor