05 January 2011
my client residing at Andheri Proprietor business : cartage refilling at railway booking centres
received tender in may 2010 raised first bill on 10 dec 2010 of Rs. 20 Lacs
Whether vat registration required ? if yes under which head? how to do vat registration ? online or physical. what document required to be submitted?. i do not have any idea about VAT.
06 January 2011
Yes your client is liable for VAT under Work Contract. Apply for VAT Registration at early at possible as per your information only single bill or your client exeeding limit of TH TO in very first bill. You may get registration on line or off line as you wish.
10 January 2011
In which state you are liable to register Mention it. in Compositin you have to pay 5%, 4% or 3% (What you choose) of Gross Receipts in WCT only TDS (WCT) credit allow to you. other wise 25% Labour component, Actual or maximum 15% hire charges Deduction, Actual or maximum 5% Power and Lubricants charges deduction, 100% Input VAT Credit and 100% Credit of TDS you can get. If your TO is less then 3 crore and purhcase is very low then go for Composition, otherwise maintain the record properly and for get Composition.
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