Vat on flex printing

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venu (Querist)
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02 March 2013 A newly incorporated firm is engaged in design & printing of flex hoardings for its clients.The firm purchases the Material.( Its expected annual turnover is around 40 Lac's.)
Works done by firm
a)purchase material,Make design & print Flexboards and hand over them to the clients.

b)Apart from the above also arrange the prepared hoardings at the required site as per client request.

1.Does the firm need to take VAT Registration or service Tax Registration.?

2. What are the Tax rate to be applied on the invoice in respective conditions?

3. How to the record the proceedings

Please help me

CA. Hari Kishan

CA. Hari Kishan (Expert)
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02 March 2013 The firm shall be required to register both under the VAT and service tax laws.

If the value of the material and services is identifiable then you may raise separate invoices for materials sold and charge VAT on this and for service charges billed charge service tax on the same.

Should it not be possible to reasonably value goods and services separately, you would fall under works contract.

venu

venu (Querist)
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02 March 2013 thank Sir

Could you please explain in detail how it fall under works contract