VAT rate on plastic water storage tanks - Kerala

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Moideen Kutty (Querist)
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26 March 2009 Sirs,

It was 12.5% VAT on plastic water storage tanks in Kerala when KVAT was firstly implimeted. Later it was reduced to 4% after two or three months. But now the commercial tax department has issued a notice to us for the year 2005-06 stating that the VAT rate on plastic water storage tanks is just 4% but we have taken input @12.5% illegally. So they want to disallow the higher rate of tax. It is the fact that our supplier had issued us invoice charging 12.5% VAT on plastic water storage tanks and we also collected and paid VAT @12.5% on this. So can you please help me by sending any order issued by the commercial tax department in connection with reducing the rate of tax from 12.5% to 4%? Or the exact date when the tax was reduced to 4%? Kindly help me.

Moideen Kutty

s zafarulla khan

s zafarulla khan (Expert)
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26 March 2009 As per your case it is clear that the Reduction of Rate have taken place after two to three months of implimentation of vat:

Just you have verify that what ever purchase at the rate of 12.5% is sold at the rate itself, then you are required to convinced the Officer, and show the bill duly received and issued:

If your officer is not convinced then do not wory you have an door open for apply before Appealing authorities, and ofcourse you will get Justice.