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Composition vat calculation

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26 September 2011 please let me know how to calculate VAT liability in case composite scheme (Works Contract)

26 September 2011 Mr RA Rai,
In composition scheme you have to pay tax on the gross receipts at a fixed rate(5% in karanataka).If you entrust some of your work,even partly,to a subcontractor,the amounts paid to him can be claimed as exempt,if he is registered under VAT Act.
Under this scheme some of your labour charges bills also become taxable.
MJK

07 October 2011 I agree with the expert




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