26 September 2007
I hv given an interior decoration contract to one person in Karnatka. He is supplying material as well as providing labour services. I want to know that what is the rate of tax he should charge from us.
Presently he is charging 4% composite tax. As per him I m not able to take credit for the tax paid by him.
04 October 2007
You can't take credit/avail because it is capital expenditure. Capital expenditure payment which is directly related to manufacturing activity the same VAT can be taken for availment. For EX Airconditioner purchase etc VAT input is not possible. The full details are very much available in our files portal.
CAclubindia
