VAT and Service Tax

Queries 696 views 2 replies

PRADEEP SARAF

SENIOR MANAGER-FINANCE

24 Points Joined October 2010

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

Replies (2)

Pawan Kr. Tomar

169 Points Joined October 2008

Civil construction contract covers under Work Contract. Under composite scheme vat rate is @ 4.12% (including cess). Under the composite scheme adjustment of previously paid tax is not allowed.

Under normal scheme it is just like of Tax payable on sale and credit available of tax paid paid on purchase.

Aparna Raja K.C

Student

520 Points Joined March 2011

Originally posted by : PAWAN
	Civil construction contract covers under Work Contract. Under composite scheme vat rate is @ 4.12% (including cess). Under the composite scheme adjustment of previously paid tax is not allowed. Under normal scheme it is just like of Tax payable on sale and credit available of tax paid paid on purchase.	,