Works contract

This query is : Resolved

M Inam (Querist)
Follow

04 November 2013 My client is in Karnataka, building and selling residential flat he is just issuing bills against receipt of advances without any bifurcation of land, material and labour......... what % of service tax and Vat he should pay on advances as he is receiving from his customers..........and which scheme is better composition/ works contract / regular one.

Please any one answer my query.....

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
Follow

04 November 2013 I am not fully aware of Karnataka VAT, but generally the provisions in all the states are more of less similar.

As per WBVAT, works contract where the components cannot be segregated, 1/3 is deemed to be labour services and the balance 2/3rds is subject to VAT. I am sure the provisions of KARNATAKA VAT ACT would be more or less similar.

Service tax on Construction of residential complexes - and commercial complexes, entitles availment of abatement at 70% or 75% as the case may be and service tax on the balance amount is payable @ 12.36%.

For VAT the registration should be under thye head "Works Contractor' and under Service Tax the service head should be Construction of residential complexes - and commercial complexes.'

Message likes : 1 times

M Inam

M Inam (Querist)
Follow

09 November 2013 Thanks you sir

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
Follow

10 November 2013 You are most welcome Mr. Inam.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

CA Bijo scaria

rana andcompany

sathiyaram

Vinod Dharwarkar

svgovindaraju

Subscribe Now

Works contract

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

Article Assistant

CA Final

GST CONSULTANT

Accountant

Manager- Finance and Compliance