How VAT would be charged

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CA AYUSH WADHWA (Querist)
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21 September 2010 Please tell me whether a real estate agent dealing in construction contracts also would have to get himself registered under both service tax & delhi vat also ? and he would be bifurcating the invoice into service & material components to charge both of them respectively...! correct me if i am wrong because i doubt i am wrong

B R Ramesh

B R Ramesh (Expert)
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23 September 2010 hi

if the real estate agent has registered under vat 75% of the total value of invoice he should charge VAT

balance 25 % of the labour he should pay the service tax under WCT

or the ratio will be 66% of material

33% will be labour component