Works contract

This query is : Resolved

rudram77 (Querist)
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08 March 2012 hi

we are into landscaping contractors register at Bangalore[Karnataka], we under take works in other state where we don't have VAT registration.

Under CST we can take up contracts out of the state if yes. provide the details.

Amit Bajaj

Amit Bajaj (Expert)
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09 March 2012 If deemed sales of material incorporated in works contract happens within a state then VAT registration is required in that State, However if there is an inter-state Works contract then VAT registration in other state is not required.

To know when a works contract is considered as inter-state works contract you may refer to the article at below link:

http://blog.amitbajajadvocate.com/2011/09/understanding-applicability-of-vat-or.html

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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18 March 2012 Mr Rudram 77,
If you are carrying all the required materials for the contracts in other states from Karnataka, then you do not need any VAT registration in other states. If you are buying any materials in those states for use in contracts it requires separate registration in each state.If you are not taking up any new registration they should(clients) not do any tds.Sometimes checkpost problems may arise in those other states. Your clients should coordinate with you to solve those problems.