06 December 2008
My firm is a Partnership firm we are basically engaged in construction activity so we purchase goods for construction purpose but our CA told us that there is no need to return VAT. we just submit nil return my query is that is it correct to submit nil return.
06 December 2008
Under DVAT Act even firms engaged in construction activities are under an obligation to get registration under DVAT Act if turnover exceeds Rs. Ten Lacs. You may go in for composition but you will have to withdraw composition if your turnover wxceeds Rs. Fifty Lacs ,,if you are a private contractor and Rs. Five Crores ,if you are a government contractor. You have to file return in DVAT-17 and pay tax @ 2.5%. If you are not covered under composition you have to pay tax @12.5% after adjusting for input credit and file teh return in DVAT-16. It is not correct to file NIL return if you are having turnover in that tax period.
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