28 June 2010
Dear Sir/Madams, Say, ABC Pvt. Ltd.,a construction company,undertakes renovation contract worth Rs.20,00,000/- for residential unit.
As per service tax 67% abatment is there on Full Rs.20 Lakhs.
I want to know what is the liability of VAT on this contract. VAT should be levied on bill to customer. What are the conditions of VAT? I have read about Work Contract Tax also on this? What it is?
28 June 2010
You have not mentioned the State to which the query is related.
However, in principal if the delaer has not opted composition scheme, he will be liable to VAT on the value iof the works contract by deducting charges for labour and services and profit thereon.
CAclubindia
