Kindly clarify that if we choose option of Compounding tax in Karnataka we are paying vat tax on receipt of payment basis mean while we have to pay tax for URD (Unregistered Dealer)purchase also. but the same time if we choose the regular scheme can be avail input credit on register dealer purchase.
Kindly confirm that we have to pay tax on URD Purchase or any othe way is there.
Thanks & Best regards, Siva.R
Note: We are construction Contractors in Tamilnadu.
06 August 2010
First doubt, you have written contractors in Tamilnadu but your query is for Karnataka VAT??
Anyways, if the matter pertains to Karnataka, you are liable to pay additional VAT at local rates at the time of filing VAT return if you make purchases from URD in case your registration is under COmposition Scheme.
HOwever, in the case of normal scheme, URD purchases do not attract such additional VAT. In the case of RD purchases under normal scheme you may avail input credit.
CAclubindia
