As per Karnataka VAT rules, what is the proportion of VAT & Service tax in a composite scheme of work contract. Is it
1. VAT on 100% value of work executed
2. VAT on 75% value of work executed
3. No liability of VAT on service receiver, Amount of VAT to be borne by service provider.
Please guide.
as per karnataka VAT act, you have to pay VAT on 75/% of Bill amount and Service tax on 40% of bill amount. in service tax case, reverse charge is applicable, service provider has to pay 50% of total service tax and service receiver has to pay 50%..
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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