RATE OF VAT APPLICABLE TO ALUMUNIUM SHEET .7 TO .9 GAUGE

[BAL KRISHAN GARG]

DEAR ALL MEMBERS,

ONE OF MY CLIENT IS USING .7 MM TO .9 MM ALU.SHEET FOR MAKING CEILING FAN BLADES AND PURCHASING THE ALU.SHEETS FOR THE ABOVE GAUGE .

VAT COMM. AS PER DETERMINATION ORDER DT.27/01/2014 SPECIFIED THAT 2.50 MM THICKNESS SHEET TO BE TAXED AT 12.5 percent VAT RATES . ONE OF MY CLIENT SUPPLIER OF ALU.SHEET IS IN THE IMPRESSION THAT VAT RATES SHOULD BE APPLIED AS 12.5 percent INSTEAD OF 5 percent TAXES APPLIED EARLIER BEFORE 27/01/2014 .

I AM OF THE IMPRESSION THAT IT SHOULD BE APPIED AS 5 percent INSTEAD OF 12.5 percent BECAUSE THE COMMISSIONER HAD MENTIONED THE THICKNESS AS 2.5 MM SHEET VIDE IN HIS ORDER .

I WILL BE THANKFUL TO ALL IF SOMEBODY MAY CLARIFY THE SAME AND HIGHLY OBLIDGED .

B.K.GARG

CHARTERED ACCOUNTANT

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above said issue? If not please inform.

AI Summary

VAT rate for aluminium sheet classification disputed after an administrative thickness-based determination affects supplier and purchaser positions.
The dispute concerns whether a Commissioner's determination taxing two-and-a-half millimetre aluminium sheet at a higher VAT rate extends to substantially thinner aluminium sheets used to make ceiling fan blades, with one supplier treating the thinner gauges as subject to the higher rate and the purchaser's adviser maintaining the historic lower rate applies because the determination specified a different thickness.