08 February 2010
I have a firm , which is dealing in erection ,commissining and installation works. i want to know that at which % of total contract vat is applicable ?
08 February 2010
As the basic principle, VAT is charged on the value of material, which may vary from contract to contract. Generally, a contractor should be able to determine the amount of material used in each contract and pay tax accordingly. However, quite often, contractors are not able to determine the value of material in individual contract. In order to facilitate computation of tax, VAT laws of various States provide for an adhoc deduction towards labour and other services. This rate of this deduction vary from State to State and also vary from contract to contract.
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