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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Gift of mutual fund units to daughter
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Form 10BD Filling
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
