05 March 2010
sir, my client has a Electrical works contractor in Maharashtra. He has TIN No. & CST No. of Maharashtra & has TIN No in Karnataka. Suppose, if he executed the work contract of Rs.50,00,000/- in Karnataka & Rs.50,00,000/- in Mahatashtra during the year 2009 - 10 then how will calculate the VAT Tax in Maharashtra & Karnataka plssssssssssss send me example and return form of VAT Sir, pls help Me?????????????????????????
07 March 2010
Under MVAT Act and Rules, for Works contact three options are there: 1) Composition Scheme U/s 42 were 8% tax is payable on total works contract on Non-Contruction contract with retention of setoff of 66%. 2) Actual method as per rule 58, were tax is payable as per goods transfered and full setoff is available. 3) Percentage Method as per Rule 58, were deduction of 25% or as per given table will be available from the contract amount and on balance tax to be paid.
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