Regarding Vat Audit (Works Contract)
This query is : Resolved
06 January 2011
My client is engaged in the business of interior works contractor.
What should be its commodity Dealt in & Schedule entry.
Please guide me for the same.
What should be its commodity Dealt in & Schedule entry.
Please guide me for the same.
06 January 2011
Please mention name of state, so that I can reply your query.
20 July 2025
For a client engaged in interior works contracting, under the VAT (Works Contract) framework, here’s how you typically classify the commodity and schedule entry:
Commodity Dealt In:
Works Contract Service / Works Contract
Since the client is providing services related to interior works (which usually involves a mix of goods and labor), it generally falls under works contract rather than just sale of goods.
Schedule Entry:
Usually, works contract falls under a specific schedule or entry related to works contract services in the VAT act applicable in your jurisdiction.
For example, in many Indian states, VAT on works contract is categorized under Schedule entry for “Works Contract” or “Works Contract Service” with a specified VAT rate.
The VAT on works contract is often treated differently than goods because it’s a composite supply involving goods and services.
What you should verify:
Local State VAT Act/Rules: VAT on works contracts is state-specific and the schedule entry might differ.
Definition of Works Contract in the VAT Act: Ensure the client’s work qualifies as a “works contract” under the law.
Schedule Entry: Usually something like:
“Works Contract”
or “Works Contract services” under the service category of VAT/Sales Tax schedules.
Commodity Dealt In:
Works Contract Service / Works Contract
Since the client is providing services related to interior works (which usually involves a mix of goods and labor), it generally falls under works contract rather than just sale of goods.
Schedule Entry:
Usually, works contract falls under a specific schedule or entry related to works contract services in the VAT act applicable in your jurisdiction.
For example, in many Indian states, VAT on works contract is categorized under Schedule entry for “Works Contract” or “Works Contract Service” with a specified VAT rate.
The VAT on works contract is often treated differently than goods because it’s a composite supply involving goods and services.
What you should verify:
Local State VAT Act/Rules: VAT on works contracts is state-specific and the schedule entry might differ.
Definition of Works Contract in the VAT Act: Ensure the client’s work qualifies as a “works contract” under the law.
Schedule Entry: Usually something like:
“Works Contract”
or “Works Contract services” under the service category of VAT/Sales Tax schedules.
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