Regarding Vat Rates under composite Scheme

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This query is : Resolved

Mukhtar Ahmed (Querist)

03 January 2011 Dear Sir/s

I am a painting contractor in Bangalore. My Vat is under composite Scheme i.e. @ 4% Rate. Do I have to include labour charges with the materials used for painting? The Govt. Department insists that I have to charge the tax only for the materials used to painting but not labour. Kindly clarify weather I have to charge the vat for for labour and materials together or only for the materials.

Thanks,
Muklhtar Ahmed.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

03 January 2011 Sir , first you ensure whether VAT or service tax under composite scheme. VAT is not applicable on labour charges as per my knowledhge, Since the query is related to VAT, Please mention the name of state.

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Hitender Gaur

Hitender Gaur (Expert)

03 January 2011 Why are you opting composition scheme in VAT, prepare the record and get the binifit of input tax, if you are in composition scheme in vat you have to pay 4% of 100% turnover, no duduction under labour component allowd to you in composition scheme. So department is right.

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