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VAT rates under Karnataka VAT

M. G. SRIDHARAN (CHARTERED ACCOUNTANT) (37 Points)

10 November 2008

I would like to know the VAT rate under Karnataka VAT for construction of residential flats?

Is it included in Works Contract?

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16 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 10 November 2008

Yes.

praveen (Chartered Accountant) (6971 Points)
Replied 10 November 2008

yes works contract is included in VAT

K. Gaurish (Government Employee) (68 Points)
Replied 13 November 2008

Residential flats not being goods are not chargeable to VAT.

Such construction amounts to works contract and is chargeable to VAT as deemed sales of materials used in the execution of works contract. Hence the individual VAT rates on materials used in the works contract need to be considered to charge such deemed sales to VAT.

thirumurugaraja (Accounts Executive) (27 Points)
Replied 09 April 2009

What is the Present Rate of Tax for Flavours as per Karnataka VAT Act?

thirumurugaraja (Accounts Executive) (27 Points)
Replied 25 May 2009

Originally posted by :thirumurugaraja
"	Hi What is the Present Rate of Tax for Flavours as per Karnataka VAT Act?	"

1 Like

HARSHAD (SERVICE) (22 Points)
Replied 18 June 2009

under which entry drip and sprinkler comes in karnatak vat,

under which entry HDPE pipes and PVC pipes and fittings comes in karnatak vat,maharashtra vat,a.p.vat, tamilnadu vat,rajastah vat,m.p vat, with rate, reply

Mahadev (Chartered Accountant) (1366 Points)
Replied 19 June 2009

Originally posted by :M. G. SRIDHARAN
"	I would like to know the VAT rate under Karnataka VAT for construction of residential flats? Is it included in Works Contract?	"

yes it is included in works contract. The rate of tax would be 12.5%. However, the standard deduction of 30% can be claimed towards labour charges as per Rule 3(2)(m) of KVAT rules 2005.