Diffrence amount of vat & cst payable

This query is : Resolved

CA. RAVI N. (Querist)
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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??

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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08 October 2011 1. He is not liable to pay differential VAT as his purchase was inter state purchase with C Form

2. If the assesse opt for Composite tax then he cannot take input tax credit on local purchases.