Service tax & karnataka vat on work contract

Dear Experts,

I need a help in Karnataka VAT and Service Tax applicability on Work Contract.

A Company is in the business of Construction and Sales of Residential & Commercial Villas, Apartments in Bangalore, Karnataka. It receives Running Bills from Contractors and makes entries in the Books.

Now how much Service Tax & KVAT it should charge?

Is it like following:

VAT @ 70% of Total RA Bill Amount

Service Tax @ 40% of Total RA Bill Amount.

Here Service Portion & Material Value is not traceable.

 

 

Please suggest.

 

 

Replies (6)

Vat will be charged @ 4% on advances recd net off advance recd for sale of land

For Service tax can claim an abatement of 60% & pay tax on the rest @ 12.36%

 

 Yes it is 14.5% VAT on 70 % of total receipts and 40% of receipts for ST under normal scheme. Under composition it will be different. Further, for  arrving at the works cost 40% of the receipts have to be deducted towards land cost. On the balance amount the above rates are to be applied....mjk

thanks a lot

Hi All,

 

I have a query, a sole propreitor is invoulved in Land development for company. I wanted to know the service tax liability under works contract as per Service Tax (Determination of Value) Rules.

Dear Friends I am propritor of Electroplating business. I will use small quantity camical for plating the materilas. I register VAT on regular basis . Mozor cost will be labour charges. I have not register under service tax.

 

Vat type of VAT i should use and how can i calculate and what is the rate of vat
 

 

Dear Experts ,

Greetings to all.

I hav a query

I have a client who is into interior designing work, I wanted to know how to charge vat and service on the total bills he recieves and (note:) majority of his incomes are recieved in cash and partial is through bank.

For Eg: He charges his clients Rs10,00,000 for a single project out of which 4,50,000 is coming from cheque and remaining of 5,50,000 is cash payment. This is because most of his work is for residential purpose and a little for commecial purpose.

I seek your valuable advice on how to charge vat and service tax on the bills he charges 

 

Plesae advice 

 

Please mail me ( mohammedfarooqvk @ gmail.com )

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