Vat, cst, wct or service tax

Others 1429 views 3 replies

Dear Fellow Pratictioners,

I needed a clarity on Karnataka State Indirect Taxes.

If a person is Interior Decorator, his services involve consulting, Involvement of Local labour and also procurement of raw materials from different State then?

Would he be required registration under CST?

Would he also be required Registration for VAT or WCT? prima facie it seems WCT but seeek yoour guidance?

Should he also register for Service tax?

What rate should he pay inter state CST if applicable and State WCT / VAt which ever is applicable? Is he eligible for Input credit ? If so under which act?

Requets all to assist on this please

Replies (3)

Yes He has to Register for CST/VAT & if his Turnover Exceeds 10L He has to Get Register for Service Tax Also.

for Input Tax Credit (If he Register under Composition he is not Eligible for Input Tax Credit)

CST Should be Payable at local Vat Rate

Dear Mr Prashant,

 If Purchase and Sale is Made outside of State then CST Registration is Required so in Your Case CST is Applicable.

you are Providing Labour as Well as Material so Its a Work Contract so Vat and Service Tax Registration is Required

Without C Form CST Rate will be the Local Vat Rate on Goods

Hi,

It is clear case of WCT. Now, refer schedule I, II, III, IV and VI of kvat act, make sure if ur service is mentioned in these schedule, if it is then wat is the percentage of vat and whether the percentage is for composite or not.

Here, u have to get regisered with CST compulsorily even if ur turover is Re. 1/- whereas, if ur service is listed in kvat schedule then no need to get registered with service tax but vat registration becomes manditory if ur turover exeeds or expected to go beyond 5lakhs.  Now, u have to charge vat on total bill ie., mater+labour.

if ur service is not listed then u make sure from any local tax expert whether those services are covered under VAT WCT or not.

regards,

jafer


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