Dear Members,
We have awarded a contract for construction of technical block (civil construction job) to a contractor. The total contract value is 82 lacs plus taxes as applicable (VAT & Service Tax). All materials & labour reqd for the job is to be provided by the contractor.
Can anybody pls clarify, under which category will the contract fall, under "construction services" or under "works contract" and what shall be the applicable rate of tax (VAT & Service Tax) under composite scheme & otherwise. Also the amount on which the tax is to be charged in each case. It is for the state the Karnataka.
Regards,
Pradeep Saraf
CAclubindia
