work contract at gujarat - input of maharashtra eligible

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2011 Query : PLEASE ANSWER, - IMPORTANT,

One of my client is registered dealer in Maharashtra & Gujarat both, they are Interior Designer(comes under work contract),

they recd 1 project labour with material at gujarat, now they wants to opt " STANDARD DEDUCTION SCHEME" i.e. 12.5% GVAT On 80% of Gross value of bill, & in this scheme, they can take the INPUT TAX CREDIT Of Gujarat purchases......

My query is that, if they purchased material from MAHARASHTRA...for the same project, In such a situation, CAN THEY, TAKE THE SETT-OFF OF TAX PAID IN MAHARASHTRA PURCHASE?? WHAT WILL BE THE ADVICE ON SUCH THING? THEY WANT TO TAKE SETT-OFF OF THIS TAX ALSO?? PLEASE SUGGEST SOME BENEFITS.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

26 June 2011 Mr Author,
Generally, in allVAT Acts set off is not allowed on the tax paid in other states.So, if you buy goods in Maharashtra and use them in Gujarat you cannot avail the input tax credit. But ,if you purchase the required material in Gujrat you can utilise that benefit.
MJK

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2011 Dear Krishnamurthy sir,

I'm not agree with your ans? coz.. than how the dealer's are dealing in most of the businesses.. coz.. most of the dealer requires some goods which is out of state to produce their own goods..!!