Work contract tax
This query is : Resolved
RANDEEP TANDEL
(Querist)
05 April 2012
HELLO,
MY QUERY IS : MR. "A" INTERIOR DESIGNER, HE WOKRS WITH LABOUR CHARGES & MATERIALS TO INTERIOR DISGN & DECORATION, BUT THIS FIRST YEAR 2011-12 HE CROSS TURNOVER RS.20 LAC (LABOUR + MATERIALS), SO I WANT KNOW WHAT PROCEDURE LAIBLE TO HIM, VAT % & SER TAX % ???? & WAHT ABOUT SET OFF ? PLS LET ME KNOW ??
MY QUERY IS : MR. "A" INTERIOR DESIGNER, HE WOKRS WITH LABOUR CHARGES & MATERIALS TO INTERIOR DISGN & DECORATION, BUT THIS FIRST YEAR 2011-12 HE CROSS TURNOVER RS.20 LAC (LABOUR + MATERIALS), SO I WANT KNOW WHAT PROCEDURE LAIBLE TO HIM, VAT % & SER TAX % ???? & WAHT ABOUT SET OFF ? PLS LET ME KNOW ??
Prakash Kochar
(Expert)
06 April 2012
Query for which State ?
RANDEEP TANDEL
(Querist)
07 April 2012
MAHARASHTRA,MUMBAI
Prakash Kochar
(Expert)
08 April 2012
Under M VAT Act dealer is under statutory obligation to hold RC/TIN if his turnover of sale exceeds limit of Rs. 500000/- (where there is no OMS purchases), If OMS purchases are exceeding Rs. 10000/- then limit for RC is 100000/-
It appears that, your turnover has exceeded limit, so apply as early as possible.
For URD period no setoff on purchases are available
If there is delay in obtaining RC, you may apply for administrative relief for URD period.
You can opt for payment of tax on sale by regular method or by composition method, for all contracts or you may follow any of the method either of these considering tax liabilty, for different individual contracts.
No tax is payable on pure labour contract. on gross value of indivisible contract you will be liable to pay tax under composition method @8%, and on opting regular method taxable sale is to be consider as prescribed u/r 58 and tax is payable on proportionate value of goods used at sch. rate, considering available setoff.
It appears that, your turnover has exceeded limit, so apply as early as possible.
For URD period no setoff on purchases are available
If there is delay in obtaining RC, you may apply for administrative relief for URD period.
You can opt for payment of tax on sale by regular method or by composition method, for all contracts or you may follow any of the method either of these considering tax liabilty, for different individual contracts.
No tax is payable on pure labour contract. on gross value of indivisible contract you will be liable to pay tax under composition method @8%, and on opting regular method taxable sale is to be consider as prescribed u/r 58 and tax is payable on proportionate value of goods used at sch. rate, considering available setoff.
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