05 May 2009
Registration under Punjab VAT Act is required if Works Contract to be done include material as VAT has to be paid on material value included in Works Contract. TDS to be deducted by payor @ 2.27% or 2.06% as applicable. Service Tax to be paid @ 10.36% for service provided from 24.2.09 only on service portion and not on material portion included in value.
In case of Road Construction, service tax is exempt. However VAT is applicale on the same if includes material.
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