VAT On Construction Works

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Mohd Sarfaraz Latibani (Querist)

15 October 2009 I am doing Construction works on contract basis. I Want to know do I need to take VAT registration for that or Servie Tax Registration?

Thanks

ANIL JANGID

ANIL JANGID (Expert)

15 October 2009 IN CASE YOUR TURNOVER MORE THAN 10 LACS YOU ARE LIABLE FOR SERVICE TEX REGISTERATION.VAT REGISTERATION NOT REQUIRED IN YOUR CASE.

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CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

15 October 2009 YOu are providing services so ST registration would be needed

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

15 October 2009 Read with above contents :)

Rajeev

Rajeev (Expert)

15 October 2009 i think u will need both the registrations , VAT & ST ( provided the t/o limits are crossed )

SARATHY RP

SARATHY RP (Expert)

18 October 2009 You are a contractor executing works contracts. You need to take (a) VAT Registration as you have to discharge VAT on the transfer of property in goods involved. Secondly, your contractee will issue you a TDS Certificate under the relevant VAT Act, which should be submitted to your assessing authroity along with your monthly return, after claiming set off benefit. (b) Secondly, you need to discharge your service tax on the labour component of your works contracts (unless the nature of work is expressly exempted one). Thirdly, if you are procuring any goods from outside your State and intend using them in your works contracts, you need CST regn. also.

In case of VAT, you will be definitely given a TDS certificate and hence the registration is mandatory; whereas in the case of service tax, the threshold limit of Rs.10.00 lakhs is available.

Thanks.
Sarathy

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