Composite tax
This query is : Resolved
26 August 2012
Dear Experts,
kindly tell me, what will be the Portion of VAT in a works contract, Where Materials also supplied along with the services given?
thanks and regards,
kindly tell me, what will be the Portion of VAT in a works contract, Where Materials also supplied along with the services given?
thanks and regards,
26 August 2012
The word works contract itself is a composite of material and labour. The state vat act (you have not mentioned the state) says that there are two schemes. One is composition scheme, in that the dealer has to pay 2% or 4% as the case may be for the total amount of the works contract without ITC benefit.
Second, you have to pay for the material value (at the rate prescribed in your state vat act) only.
Second, you have to pay for the material value (at the rate prescribed in your state vat act) only.
26 August 2012
My question is concerned with Maharashtra State.
Here, the vendor is charging out of total value, 33% is considered as labour charges and service tax is levied on the labour charge at 12.36% and remaining 67% is considered as material value and 12.5% VAT is charged.
is this correct?
Here, the vendor is charging out of total value, 33% is considered as labour charges and service tax is levied on the labour charge at 12.36% and remaining 67% is considered as material value and 12.5% VAT is charged.
is this correct?
27 August 2012
It depend on from which state you are dealing in..in case service provider not able to segregate the service and material part in that case some percentage is fixed as by state government for example in bangalore its 75% & 25%..
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
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- 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
- 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
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
