VAT on Transported Sand, VAT + CST

[vaibhav patni]

Dear Sir,

We are a sand supplier. We purchase sand from mines and supply end to end users i.e. builders, etc. During the purchase we take Royalty Receipts. Those Royalty Receipts are in the name of end users. In principle we are not purchasing sand we are only transporting sand. Whether VAT is applicable to us ?.Or is there some other tax we should be paying.

Posts / Replies

[YAGAY AND SUN]

Dear Vaibhav,

In 2015-2016 MP Budget, the VAT on Sand, Gitti etc. had been increased. Vat on sand, gitti and flooring stone increased - sand, gitti from ₹ 20 to 35 per cubic meter, flooring stone ₹ 1/ 50 paise/ 25 paise to ₹ 2.50 / ₹ 1.50 / 75 paise.

For details please click on following link.

http://www.capitalmarket.com/Budget/2015-2016/Madhya%20Pradesh%20Budget%20Press%20Release%202015-16.pdf

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[ganeshan kalyani]

To my understanding you are liable to pay Vat as the activity is of trading of purchasing sand from mines and supplying it to end users.