We are awareded a contract to a Party in view of suply of Granual Sub base(GSB) to our Road works.
1. The Rate inclusive VAT 2. Party had submitted invoice on 06.06.2008 with out specify VAT amount intheir Inovice. 3. Now the auditor pointout in this matter for collection of VAT from contractor for thier subsequent bills( 4%).
Can we deduct this amount from their subsequent bills on 15.07.09?
20 July 2009
Normally VAT law provides for procurement from unregistered dealers. If not then the buyer is required to pay the VAT. Pl confirm the tax payment by supplier as it is otherwsie a double hit for you. If you supplier is regiastered then he should have charged VAT separately. You would also have been admisisble for the credit of the same. After asking him to revise his bill indicating VAT separately. Otherwise in my view you can deduct the same.
CAclubindia
