Works contract

   VAT is chargeable on the transfer of property involved in a works contract. This is estimated by taking the purchases and adding profit to it. Labour and services value are exempted from vat but,chargeable under ST Act. If proper identifiable accounts are not mintained, then the value of transfer of property may be taken as 70% ,75%,or 80% depending upon the type of ontract. Any sale associated with labour is termed as works contract.......mjk