29 October 2013
Mr Prosenjit, Whenever there is any transfer of property in goods(consumption of goods)in a works contract vat will be applicable on the value of it.This value can be calculated by taking their purchase value and profit into account or by taking 70% of the total receipts.vat liability is calculated on the value of each of th goods at applicable rates.TDS is done from the payments due to a contractor at 4% from the govt and semi-govt organizations. If this becomesexcess than the above said amount it can be claimed back thru returns. ......mjk
CAclubindia
