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Cst purchases by works contractor in cot scheme

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Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 I am a dealer in Karnataka and i am an works contractor and opted for COT scheme.
However, i made CST purchases for my contract work and that to paying higher rate of CST( with out C Form).
my query is, whether i liable to pay VAT again on my CST purchases.

Kindly guide in this matter and do the needful.

Girish

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

25 August 2013 Under sec 15(5) of KVAT Act you have to pay full tax,at applicable rates, on the interstate purchased goods consumed in a works contract for which you are paying tax at composition rate. You have to add normal profit to the value of interstate purchses and deduct this value from the total contract receipts. The I/S purchase value+profit will be liable for full rate of tax and the balance at composition rate of 4% or as applicable.....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2013 Thank u very much

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