A COMPANY IS REGISTERED IN MAHARASHTRA, ENGAGE IN THE BUSINESS OF AIR CONDITIONOR TRADING, INSTALATION AND MAINTAINANCE.
ONLY SALE OF AC IS A SALE TRANSACTION BUT WITH INSTLATION IS WORKS CONTRACT TRANSACTION UNDER M.VAT ACT. FOR PERFORMING THE CONTRACT OF INSTALATION OF AC, MATERIAL IS PURCHASED @ 4% & @ 12.5%. A COMPANY IS ALSO REGISTERED IN SERVICE TAX UNDER MANAGEMENT, MAINTAINANCE AND REPAIRS SERVICES AND ERRECTION, COMMISSIONING & INSTALLATION SERVICES. WHILE RAISING BILL , OUT OF TOTAL BILL COMPANY IS CHARGING VAT ON 67% OF TOTAL BILL AND SERVICE TAX ON 33% OF TOTAL BILL
MY QUERY IS THAT:
HOW M.VAT LIABILITY TO BE CALCULATED FOR ABOVE SAID TRANSACTION? WEATHER FULL SET OFF IS ALLOWED FOR SUCH TRANSACTION OR IS SUB RULE (4) OF RULE 53 OF M.VAT IS APPLICABLE, AS NATURE OF TRANSACTION IS WORKS CONTRACT BUT NOT COMPOSITION?
CAclubindia
