Applicability of vat on turnkey contract
This query is : Resolved
30 August 2012
If a works contract (turnkey contract ) is being executed in Mumbai Offshore or any where in India by a foreign contractor not having any permanent establishment in India, does he require to pay VAT / CST on material portion in case contract can be divided in materials & services or Works Contract Tax if it is an indivisible contract? If yes, does he require to obtain VAT / CST no. ? Are such contractors, not having permanent establishment in India, allowed to have CST no. or VAT no ? Can such VAT / WCT be claimed as set off by the customers?
Sanat Kumar
Sanat Kumar
31 August 2012
Mr Sanat Kumar,
Here carrying a work off shore is not important,the palce where an agreement was entered into is the main issue. If for an indian organisation a work has been taken up to be excuted then all the VAT and CST laws will be applicable,irrespective of whether the contractor is a foreign company.....MJK
Here carrying a work off shore is not important,the palce where an agreement was entered into is the main issue. If for an indian organisation a work has been taken up to be excuted then all the VAT and CST laws will be applicable,irrespective of whether the contractor is a foreign company.....MJK
01 September 2012
Dear Mr. Krishnamurthy,
Thanks for your response. It is noted that the VAT / CST will be applicable to foreign contractors. Kindly elaborate whether foreign companies not having permanent establishment in India are eligible to get VAT / CST nos? Can CST / VAT nos. be given on individual case basis as companies after completing contract (LSTK / works contract) may not continue to work in India.
Regards
Sanat Kumar
Thanks for your response. It is noted that the VAT / CST will be applicable to foreign contractors. Kindly elaborate whether foreign companies not having permanent establishment in India are eligible to get VAT / CST nos? Can CST / VAT nos. be given on individual case basis as companies after completing contract (LSTK / works contract) may not continue to work in India.
Regards
Sanat Kumar
01 September 2012
Mr Sanat Kumar,
The foreign companies have open a temporary office for the purpose of executing the work and also to obtain registration. Even for small contracts registration has to made under VAT amd CST Acts,if the value exceeds the threshold(5 laks).....MJK
The foreign companies have open a temporary office for the purpose of executing the work and also to obtain registration. Even for small contracts registration has to made under VAT amd CST Acts,if the value exceeds the threshold(5 laks).....MJK
02 September 2012
Dear Mr. Krishnamurthy,
Thank you very much sir.
With regards,
Sanat Kumar
Thank you very much sir.
With regards,
Sanat Kumar
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
