ca
36 Points
Joined September 2008
I have some issues I hope you carify the same with respect to works contract
Mr. A has 90 lacs subcontract of Road construction (new) from ABC Co, Ltd.
Mr A's material requirement is sourced from Quarry work for which he pays royalty to government. other than this there is no other material cost to him.
following were the exp incurred by him.
Royalty paid to goverment - Rs. 7 lacs
Extraction work from quarry - Rs. 13 lacs
earth work - labour - Rs. 10 lacs
Tranportion cost to site - Rs. 8 lacs
Temporory structures ---------- Rs. 5 lacs
Consumables Rs.7 lacs
repairs & maintance-crusher Rs.12 lacs
Establishment exp Rs. 25 lacs
Please let me know in the above case whether KVAT will be applicable or not under regular vat scheme ?
For VAT calculation What is the cost of material -
Whether royalty paid to goverment will be treated as material cost
whether tax paid on material used in temporory strtuctre will be available for input credit
Whether Depriciation portion of crusher will be considered for establishment exp