works contract tax for civil works in kerala state

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2010 Sir, I want know (VAT IN KERALA) - When the awarder gives payment to us he is deducting TDS from the payment made to us . The Awarder is not deducting any VAT.Whether I (contractor) is lable to pay VAT at the time of quarterly return time on the TDS amount also or for the cheque amount what we received from the awarder.?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 October 2010 The Contractor had to consider the full value of contract ,out of which the contractor has to calculate KVAT either at 12.5% (subject to statutory deductions) or at 3% (compounded rate) at his/ her option. Then from that amount, the contractor can deduct the KVAT deducted by the awarder (on the strength of proof) and the remaining amount is the KVAT due on which cess @1% has to be added and should be paid to Government either monthly or quarterly on or before the stipulated time failing which interest also will be levied.

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