Vat registration for works contract

Dear Colleauge,

One of my friend wants to register his proprietory business under MVAT act. According to the business activity he explained to me i told him to register under works contract composition scheme.

My question is, whether he can get registration under the aforesaid activity Voluntary/mandatory?

If mandatory then he need to show the invoice pertaining to goods only or both( goods & service) and in order to compute the threshold limit of Rs.5lac. it cover only goods related item or both i.e. (goods& service)?

Please guide me.

Thank you.

Replies (3)

Dear Rohit 

 

He can apply for voluntary registration . Mandatory registration is applicable to him in case of limit exceeding 5,00,000

While considering the criteria of 5,00,000 only the invoices pertaining to the goods sold should be taken into consideration as your query is related to VAT 

 

Ok .....

Thank You Harshal....

Dear Sir, 

Please guide me what is the limit of Dvat registeration for works ontract ?

Thanks,

Mahipal Singh Bangari

 

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