works contract
This query is : Resolved
13 September 2009
Sir Plz solve my following query
e.g. (Works Contract Value is 1000000/- Urd Raw Material @4% is Rs.300000/- RD Exempted Purchase Rs.200000/- which is liable to paid vat on margine @12.5% . Labour & Other Expenses is Rs.400000/- G.P.is Rs.100000/-) How can calculate the Vat amount on Works Contract?
e.g. (Works Contract Value is 1000000/- Urd Raw Material @4% is Rs.300000/- RD Exempted Purchase Rs.200000/- which is liable to paid vat on margine @12.5% . Labour & Other Expenses is Rs.400000/- G.P.is Rs.100000/-) How can calculate the Vat amount on Works Contract?
CA. O.P. Agarwalla
(Expert)
16 September 2009
Taxable Value of the WC:-
Gross Value 10 Lacs
Less:
Labour Charges (if evidenced) 4 Lacs
Balance 6 Lacs
As regards exempted goods are concerned, as I understand from the case of Gannon & Dunkerley (1993)that exempted goods should also be deducted from taxable value.
No question of ITC being goods purchased from URD.
Gross Value 10 Lacs
Less:
Labour Charges (if evidenced) 4 Lacs
Balance 6 Lacs
As regards exempted goods are concerned, as I understand from the case of Gannon & Dunkerley (1993)that exempted goods should also be deducted from taxable value.
No question of ITC being goods purchased from URD.
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