Vat & service tax on interior works
This query is : Resolved
26 December 2013
I have a taken a contract for a local company in Andhra Pradesh, for Interior & Finishing works. The Contract amount is Rs.10 Lakhs (including material and labour cost). I want to know what will be the VAT and Service Tax Liability and how is it calculated.
It is not possible to separate the Material and Labour Cost.
1.How VAT & Service Tax is Calculated?
2.Whether Input Tax Credit allowed on materials purchased?
3.Whether Input of Service Tax is allowed?
It is not possible to separate the Material and Labour Cost.
1.How VAT & Service Tax is Calculated?
2.Whether Input Tax Credit allowed on materials purchased?
3.Whether Input of Service Tax is allowed?
26 December 2013
Hi
The options under ST are:
1. Pay 4.12% on gross value under composition.
Credit of CED on capital goods + Service tax credit on eligible input services wouldbe available.
2. Pay ST on 33% and VAT as per local VAT law. No credit available.
3. Pay VAT on actual materials transferred and pat ST on balance: if VAT paid on 65% then pay ST on 35% under Not. 12/2003. Credit on Capital Goods / Services available.
Thanks//VaibhavJ
The options under ST are:
1. Pay 4.12% on gross value under composition.
Credit of CED on capital goods + Service tax credit on eligible input services wouldbe available.
2. Pay ST on 33% and VAT as per local VAT law. No credit available.
3. Pay VAT on actual materials transferred and pat ST on balance: if VAT paid on 65% then pay ST on 35% under Not. 12/2003. Credit on Capital Goods / Services available.
Thanks//VaibhavJ
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