Correct type of tax(s) applicable

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Sayantan Chaudhuri (Querist)

13 April 2010 I am registered works contractor in the state of Jharkhand. I am registered for service tax, CST as well as VAT( VAT registration is for Jharkhand only).

Now I have got a contract to fabricate some fixtures and other work shop related articles for an organization in the state of West Bengal in which I have to procure the raw material locally in West Bengal, process it and supply the end product at the customer's premises.

I would like to know as to what taxes are applicable i.e. what taxes do I collect from my customer.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 April 2010 you need to register under Sales tax department West bengal. Both VAT & service tax applicable based on the transactions

Sayantan Chaudhuri

Sayantan Chaudhuri (Querist)

15 April 2010 Dear Mr. Krishnan,
As I am registered under service tax as a works contractor, I should be able to work any where in India. Moreover since I also do have a Central Sales tax registration, then in that case can I not charge the customer CST on material part (any way I am buying material from West Bengal by paying VAT, and there is no inter state physical movement of material) and Service tax on the service part.
Please advice.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 April 2010 As per as service tax your view is ok. you need to give centralised registration with the Service tax dept. and include the W.B.place as addtion place of business.

But Service tax. you are a work contractor.if you are only supplier for goods your CST registration is enough.but a work contractor has to go to the particular state and work. as per most of the State VAT asking registration under local VAT for doing work in the respective state. better you refer the W.B.VAT act. for out side work contractor need to be register or not for working in W.B

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