25 January 2012
Abc Ltd is a Contractor & Simplex Ltd is a contractee. In the month of Dec 2011, Abc Ltd purchased Rs 750000.00 Material for works contract job in Orissa.The above purchase is a CST Purchase. Abc ltd received two bills from Simplex of Rs 326000.00 . Simplex Deduct VAt - TDs on Rs 326000.00 @ 4%. Please inform me the Vat Calculation of the month of Dec 2011.
14 February 2012
Mr. Ramen Ghosh, The contractor has made all interstate purchases only.CST paid on these purchases can not be claimed as input tax credit.If you have maintained correct accounts of the contract calculate the value of labour and works expenses and reduce that amount from the receipts.Split the balance of taxable turnover into the goods suppied in the contract,apply the respective rates and calculate the output tax payable.As ststed by you Rs13040/- has deducted as TDS from your bill.Deduct this amount from the output tax and pay the balance amount to the Odisha Coomercial Tax Department.
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