Regarding computation of deemed Vat Liability under TN Vat for new construction residential project at Chennai, we had made payment to contractor for external and interanal electrical works. The contract includes material cost and labour cost. Our query is as under:-
While computing the vat liabilty we used to calculate deemed sale on the input material + 10% profit margin on the same.
However please clarify whether the material supplied by the electrical contractor will be included in the calcuation of deemed sale. If no then please provide justification for the same.
CAclubindia
