OUT PUT TAX ON WORKS CONTRACT

This query is : Resolved 

27 March 2009
Sir,

i am working in Construction Company as Accounts Manager. Previously i worked in Bangalore i dont have much knowledge on AP Vat.

our company is Civil construction company we are under Vat -

what is the rate of Out put tax on gross bill

For example : We received RA Bill from RWS dept

Gross bill = Rs.1,00,00,000

what is the rate of Out put tax on Gross bill

Thanks& regards,
r.maheswarareddy
rmaheswarareddy@yahoo.com
9000993255

27 March 2009 Tax Calculation on WCT contract is quite tedis job due to combination of Labour & Material Component invoved into it, But to simplified it, all State has introduce Composite Schem for Work Contract, under which Contractor need to Pay only fixed rate of Tax on Whole Contact amount in ur case RA bill amount & take credit on Material purchase after keeping some % of retion on the same.
Otherwise u can go genral method in which u need to calculate Purchase @ different rate of VAT & on the bais of It charge the vat rate on final material quatity involved into ur RA bill, but for that u need to establis one to one corelation & keep recored upto date for future assement.
For Rate purpose u need to Check ur state act. But my advice is to go for Composit schem, becasue in this u do not need to mainain one to one corelation between input & delever material.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries