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Works contract on VAT

This query is : Resolved 

03 December 2007 Respected Members,

One of our client fall in work cotract. They supply material and labour to the parties on which the concerned party has deducted the TDS.

I wants to know the related provisions regarding the same in current VAT system.

I also wants how to represent the Work Contract Sale in Section G of Form 704.

Regards,

Prabhakar

04 December 2007 If there are two separate contracts, one for supply and one for labour (only labour and no involvement of any goods), No works contract for VAT Purposes.

In other words, no VAT can be imposed on any contract of pure services (in which propety in goods does not passes in execution of such works contract)


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