Andhra Pradesh - VAT

[Ganeshan Kalyani]

I would like to highlight a situation where a business faces a competition in the local market from few good dealers because of the price. The product is same and the price before VAT is more or less same, only difference is that of VAT rate. The product dealt upon by company A is applying higher rate of residuary schedule as the same does not fall under any of the schedule of lower rate. The company B is collecting lesser rate of VAT on bill specifying the same product name as the company A is mentioning on the Invoices. Company A or B both have their own stand as far as the rate of VAT is concerned.

Is there any route by which the Company B can be asked the back up behind sorting for collection of lower VAT rate. The Right to Information would help to understand what the practice is followed by a company but as regard the back up or supporting or write behind the a particular practice would not be available. I would request your good selves to through some light on the common issue which most of the company may or may not be faced by a company in the market.

AI Summary

Companies Dispute VAT Rates on Same Product: Clarification Needed on Residuary Schedule Application for Fair Competition A business in Andhra Pradesh is facing competition due to differing VAT rates applied by two companies on the same product. Company A applies a higher VAT rate under the residuary schedule, while Company B charges a lower rate. The discussion seeks to determine if Company B can be asked to justify its lower VAT rate. A legal consultant advises that goods not specifically listed in a VAT schedule should fall under the residuary schedule with the highest tax rate. The consultant suggests seeking clarification from the APVAT Department and offers professional services for detailed assistance.