30 December 2011
One of my client has a business of installation, repairs of cooling towers. VAT & Service tax both are applicable to them. Please any one tell me whether VAT Audit is applicable to him??? His turnover is exceeding 60 lacs but i m confused whether VAT Audit is applicable to Works contractor for installation of cooling towers.please provide any supporting or proof with your answer....plz its urgent.... Thanks in advance
02 January 2012
Mr. B Panchal, I do not know from which state you are asking this query. In most of the states it is works contarct liable to tax. In Karnataka it is taxable at thee rate of 14% on the material value involved in it. Compulsory audit is required when the total turnover exceeds Rs40 lakhs in a year.See Sec 31(4) of KVAT Act and sixth schedule.
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