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additional vat

Querist : Anonymous (Querist) 08 January 2011 This query is : Open 
We the VAT registered dealer in Andhra Pradesh, and presently our project is under construction, and the entire construction work was outsourced along with material, in 2007, and in work order we were not separated the material rate and labor rate, the rate is inclusive of material & Labor, accordingly the contractor is charging @4% VAT on the work certified.

With effect from February, 2010 VAT amended from 12.5% to 14.5%, Now the contractor is raising an invoice for additional Vat of 2%, i.e., (4+2=6%).

Can we pay the additional 2% to the contractor… Please Advise
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