Re:vat

  Mr Roopanand,

 Out of the receipts of works contract the value of labour and services with profirt is allowed to be deducted before VAT calculation.....MJK 

Vat is applicable on materials sold in normal course. So, there is no question to levy tax on labour/services and in this case you can get input credit. There is one more option for a dealer who want to opt composition tax at fixed % (2% / 4%) on total amount of contract. This option is better for small dealers but you can't get any vat input set off.