Tax on the contract work

This query is : Resolved

Pallavi (Querist)
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28 May 2015 dear sir,

on of my client registered under the COT (Commercial tax) and Service tax. AS per COT he has to pay tax on 100% of the works contract and also on 70% he has to pay the service tax.

But as per explanation given by him,,, he has only 30% of the labour involved in his work and remaining 70% is the material.
So he is in situation of not getting any tender work if he quotes such an higher value for the work .

What can be the solution in favour him. kindly suggest.

thanks in advance

Kumar Gaurav

Kumar Gaurav (Expert)
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28 May 2015 Please let me know your client is register under which state vat and status of your client (ie comapny, firm etc). Further I belive tender clause do have provision for qouting vat rate for dealer registered under composition scheme under vat. So your client qoute rate as per COT.

Normally COT Vat rate on 100% value of contral and ST rate on 70% value of contract to be qouted on the tender as your client is COT dealer