Computation for vat on works contract
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 August 2012
hi,
one of my client is in construction business and he opted composition tax under VAT, and it is works contract
so, how to compute VAT against payment received from customers.
if payment received Rs. 2 lakh...
whether i should pay tax Rs. 7692/- (200000/104*100*4%)
or
should i deduct 20% as exemption for labour in works contract i.e, should i discharge VAT on Rs. 1.80 lakh...?
kindly let me know as soon as early with relevant section & clause
one of my client is in construction business and he opted composition tax under VAT, and it is works contract
so, how to compute VAT against payment received from customers.
if payment received Rs. 2 lakh...
whether i should pay tax Rs. 7692/- (200000/104*100*4%)
or
should i deduct 20% as exemption for labour in works contract i.e, should i discharge VAT on Rs. 1.80 lakh...?
kindly let me know as soon as early with relevant section & clause
Ankit Varia
(Expert)
01 September 2012
The builder has an option to opt for with 1 percent composite tax in which no setoff is available or 5 percent composite tax
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