Works contract tax computation tax invoice

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Amit Padaki (Querist)

07 August 2011 Hi,

Please let me know the exact computation of VAT liability for construction industry in Karnatak for developers.

Ex:- Total amount received 140
Land element 40
Total payment to sub-contractor is 60
Input VAT in the Sub contrator bill 6

So, please let me know:
1) How does the Tax Invoice look like?
2) What would be the Out put to be charged?
3) What would be the net VAT paylable to Dept?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

09 August 2011 Mr A Padaki,
Tax computation in this case is as follows:
Total Receipts.... .... ... Rs140/-
Less:
1)Land Cost.... ... Rs40/-
2)Payment to Sub-Con-
tractor .... ... Rs60/-
3)Labour charges
30% of Rs40/- ... Rs12/-
Total exemptions... Rs112/-
Taxable amount Rs28/-
Tax payable 14% on Rs28/- Rs4/-
Several details such as admissibility of I/P tax,labour,some expenses can not be discussed here.If necessary contact me at
9482222280.

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Amit Padaki

Amit Padaki (Querist)

12 August 2011 Thanks for the answer, but still the specfic answer are waiting, and one more issue is that, Can I claim only VAT input?
Let me know the answer for all above questions.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

12 August 2011 Mr.A Padaki,
You can claim only VAT input,not CST input.The net tax payable will Output-input.
MJK

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