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V.A.T. & Service Taz

S. M. Desai (CONSULTANT) (84 Points)

29 March 2010

Dear Friends,

How to charge V.A.T. & Service Tax on works contract bill by a Civli work contractor registered under works contract both in Service Tax & Gujarat V.A.T. Act?

Please advise, how he should raise the invoice of works contract and at what rate he should charge V.A.T. & Service Tax?

Thanks,

Regards,

S. M. Desai

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1 Replies

CA Ankur Dhamanaskar (Student) (295 Points)
Replied 29 March 2010

In Works contract, VAT is chargeable only on the material content. In case of Labour, service tax is chargeable.

In Invoice there should be a separate bifurcation of Material & Labour content. Separate VAT No. & Service tax No. should be Quoted by Works Contractor........!!!!

Regards,

@ nkur.