07 May 2011
I am a contractor , and I execute work of levelling , earth work and Demolition of Old bldgs. Besides I do not use any materia. I execute the contract of above nature only and Only labour is utilised for it. No Material is Consummed. Now I wish to Purchase JCB \ Pocklain Machines for earth work. The said machine will be brought from out state.The co. sill levy 2% cst against C form If I register myself under CST. Otherwise I will have to bear 12.5% cst if I dont produce C form being unregistered under CST Act. Now my queston is that being Labour Contractor only I am not liable to Register myself under M VAT
Experts are requested to guide , What will b the procedure to register under CST and If I not register under MAT what will be the consequences ? What is the Solution to Save my Central Sales tax?
08 May 2011
Dear Hemant, As there is no involvement of Material in your contract so, liability of VAT does not arise. You cannot obtain CST registration. If you show to the Commercial tax department that the machinery will be braught for "RIGHT TO USE" than only u can able to take CST registration and may utilise form "C". U r free to contact me at 09329533133.
CAclubindia
