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Executing a project in other states

Others 482 views 1 replies

Ragunath

Accountant

24 Points Posted on 18 January 2013

I am running an interior company under Indian accounting standard A11 construction contract and I am registered with VAT and CST in Tamilnadu now I got an order to execute an interior Project in Delhi but the client is in Tamilnadu region they were issuing Purchase Order to me in tamil nadu region but the project has to be execute in Delhi what are the taxable formalities to be done. Some experts please help me to do the documentation and laws to execute the same.

Replies (1)

MJ Krishnamurthy

ACCT(Retd)

7197 Points Posted on 03 February 2013

Mr Raghunath,

There are two ways of excuting the work. One is carrying all the required material from TN to Delhi(which is mostly not economical) and the second is buying the necessary goods at Delhi itself and completing it by using the labour picked up from anywhere. In the first category, you need not register under Delhi VAT Act because it wil be an Interstate contract governed under CST Act 56.If you are adopting the second method then you will have to take up a registration under Delhi VAT Act ,pay taxes as per that Act........MJK