How many types of contract in vat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2012 Dear all,
(From Andhra Pradesh)

Someone asked me to write their account which is contract works

But I don't know VAT procedures in contract works

I asked so many persons about VAT procedures in contract works, they told some points i.e., composition scheme, pay 1% tax at the time of apartment registration, take 30% as a standard deduction, give 250 form like that but I could not get proper answer

So please explain how many types of contract in VAT and what are the correct procedures

i am waiting for your valuble reply

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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02 December 2012 Mr Author,
There is only one type i.e. Works contract
Itmay be under regular tax payment scheme or under composiiton scheme.In the regular scheme you have to deduct 30% of receipts towards labour charges and charge/pay VAT at respective rates of mterial. For composition scheme the method is to charge 4 or 5% on the entire receipts and pay as per state rates.Input credit is available under regular schemebut no such benifit under composiiton scheme.....MJK

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