Service tax & karnataka vat on work contract

CA Bijay Shrestha (Never Give up....No matter what....)   (858 Points)

15 June 2013  

Dear Experts,

I need a help in Karnataka VAT and Service Tax applicability on Work Contract.

A Company is in the business of Construction and Sales of Residential & Commercial Villas, Apartments in Bangalore, Karnataka. It receives Running Bills from Contractors and makes entries in the Books.

Now how much Service Tax & KVAT it should charge?

Is it like following:

VAT @ 70% of Total RA Bill Amount

Service Tax @ 40% of Total RA Bill Amount.

Here Service Portion & Material Value is not traceable.

 

 

Please suggest.