A contractor has made Interstate purchase for Rs.1,00,000/- and paid CST @12.5% Rs.12,500/-, Freight Rs.2,000/-. My question is, whether he has to pay KVAT on Rs.1,12,500/- ie., Rs14,063/- or on Rs.1,00,000/- ie.Rs.12,500/-?
30 October 2010
Sir, he has compounded his work. As per Kerala Finance Bill 2009, Circular No.3/2009, if a contractor has opted for compounding and he made any Interstate purchase,then he has to pay KVAT on such purchase value. Sorry, I forgot to specify about "compouding".
CAclubindia
