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

AI Summary

Client Disputes VAT Rate on Aluminum Sheets for Ceiling Fans, Seeks Clarity on Applicable Tax Percentage A client is using aluminum sheets of 0.7 mm to 0.9 mm thickness for making ceiling fan blades. A VAT determination order dated January 27, 2014, specified a 12.5% VAT rate for sheets of 2.5 mm thickness. The client's supplier believes the 12.5% rate applies to their sheets, but the client argues that a 5% rate is appropriate since the order mentions 2.5 mm sheets. The client seeks clarification on the correct VAT rate. A forum member inquired if the issue was resolved.