Dear Experts,
My client is undertaking Works Contract of Erection, fabrication and installation of Diesel Storage Tanks. The CTO has proposed to tax the WC @ 13.50% instead of 4% for 2010-11. He says that this specific entry is not mentioned in Sch. VI of the KVAT 2005.
What is the correct rate of tax applicable on this Contract? Any decisions in Karnataka is anticipated.
Erection,fabrication and installation is mentioned in sl no 4 or 5 of sixth schedule and chargeable with 5.% VAT.Full tax rate is not applicable for these contracts.......mjk.
While thanking you very much, I request you to kindly send some decided case laws in this regard. Sir.
No case law is required for this purpose.The descripttion of work given by you exactly matches with entry no 4 of sixth schedule to KVAT Act 2003.Therefore no one can dispute it.........mjk
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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