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

Residuary tax schedule determines VAT where goods lack specific classification; seek statutory clarification rather than unilateral rate choices.
Goods not specifically covered by a scheduled entry fall under the residuary tax schedule and attract the residuary rate; no assessee may unilaterally choose a lower rate. Where sellers apply different rates to the same product, parties should seek authoritative classification from the APVAT Department under Section 67 of the APVAT Act (fee prescribed) and may engage consultants to present supporting material.