11 March 2012
Mr Kirti, If the total value is less than Rs5 lakhs you need not pay any tax provided, there is no other sales. You can deduct the expenses made on labour,consumables,and services from the bill value and charge on the value of goods involved at the appropriate rates.If from your accounts the cost of labour and services and the profit applicable to that work can not be ascertained a fixed ratio on the recipts is also allowable as per rules(30% for civil works etc).On the balance amount,by splitting into the value of each goods involved,with profit,you can charge vat.If there are registered sub contractors to whom you have entrusted some part of work their bill value can be reduced before charging tax....MJK
11 March 2012
You can also opt for composition method. On gross turnover of sale i.e. contract value received you have to pay 5% tax if it is construction contrac, otherwise tax rate will be 8% for other than construction contract. In this method you will be entitle for full setoff of taxes paid on purchases of capital assets and other goods not transferred. On goods transferred setoff will be available 16/25 of input tax in case of contracts liable for 8% and by reducing 4% of purchase price out of input tax where opted to pay 5% tax on gross contract value.
Regular or composition method can be opted by the dealer as per his choice. (Maharashtra VAT)
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