Q. > Please Help: Maha Vat on Job Work

319 views • Question added Aug 08, 2013 • VAT • By Lokesh Jain , CA , Pune

Dear Sirs,
This query belongs to Maharastra Value Added Tax. My organisation is pune based (herein after called contractor) engaged for working to the another organisation(hereafter called contractee) on the job work basis. Contractor paint (spray Painting) the parts of two-wheeler vehicles. Contractor supplies the material (components for painting and paint in standard quantity)on excise challan 57F (4). After the suitable processing we return back finished goods to contratee. We charged to them only our conversion charges and allowed margin. Also we does not liable for any taxes like vat, excise duty and service tax.
Thereafter periodic reconciliation done by contactee for above job work done, it has been found that contractor has blamed for excess paint consumption rather than standard quantity provide by the contractee.
Further contractee debited to contractor for the X amount for over paint consumption. and also charged 12.5 Vat on the same. For this cotarctee issue to us Debit Note.
My Query is that, is it right to charge the VAT on above discussed amount with reference to above mentioned facts. If yes, please explain to me can we go for input credit for the debateable VAT Amount in the scenario of Maharstara Vale Added tax.
It is requested you please resolve the query as possible.

Thanks in advance

CA Lokesh Jain
M.No. 418637