Cst rates on interstate works contract-clarification request
This query is : Open
15 April 2012
Sir,
Recently We have done interstate works contract services.Our unit is in Tamilnadu and registered under TN vat act. Recently we have done Interstate works contract services for a client in Delhi.
In this case, what will be the CST rates that will be applicable. I presume that it will be only on the material value.And whether we have to obtain any TAN No. for works contract services from the commercial tax department.
Also what will be the Service Tax rate for the above?
Will any one will guide on this.
Thanks in advance.
Radhakrishnan
Recently We have done interstate works contract services.Our unit is in Tamilnadu and registered under TN vat act. Recently we have done Interstate works contract services for a client in Delhi.
In this case, what will be the CST rates that will be applicable. I presume that it will be only on the material value.And whether we have to obtain any TAN No. for works contract services from the commercial tax department.
Also what will be the Service Tax rate for the above?
Will any one will guide on this.
Thanks in advance.
Radhakrishnan
16 April 2012
Dear sir,
you have not explain your nature of WC done by you for Delhi client.
but since you have completed your WC interstate,then we can prove your material bill & liable to charge service tax on remaining lobour portion @12.30% only subject to other agreed terms and conditions of contract.
CST would be applicable as local State VAT on particular commodity/materials.
No TAN is required u/given facts.
you have not explain your nature of WC done by you for Delhi client.
but since you have completed your WC interstate,then we can prove your material bill & liable to charge service tax on remaining lobour portion @12.30% only subject to other agreed terms and conditions of contract.
CST would be applicable as local State VAT on particular commodity/materials.
No TAN is required u/given facts.
16 April 2012
If from one department you are transferring goods to other department from one state to the other state then with the help of transfer form you can transfer it without CST
16 April 2012
Please read 12.30% as 12.36%.
16 April 2012
Goods transferred from one state to another against a pre-existing order, is not a stock transfer and liable to pay CST on material components involved in the execution of interstate WC. So please take care and evaluate accordingly.
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16 April 2012
Dear Mr.Sanjeevkumar,
Thanks for your clarification.
Since in TN local works contract tax are as follows:civil contracts are charged at 2% WCT & other contracts are charged at 4%
In our case will that 4% will be applicable though this is a CST transaction(or) as you mentioned CST 5%(Vat on the products) on the material components.
Thanks in advance.
Regards,
Radhakrishnan
Thanks for your clarification.
Since in TN local works contract tax are as follows:civil contracts are charged at 2% WCT & other contracts are charged at 4%
In our case will that 4% will be applicable though this is a CST transaction(or) as you mentioned CST 5%(Vat on the products) on the material components.
Thanks in advance.
Regards,
Radhakrishnan
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