VAT on Civil works in UP State

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2010 Hi,

i work in a EPC contracting firm where we are participating in a Tender for which the project site is situated in the state of Uttar Pradesh.

In the tender there is a common schedule for erection of electrical equipments and civil works of all nature. Though schedule is same all items of erection and civil have been identified under seperate heads.

now i would like to know what will be the tax liability on civil and erection works.

what are the options available and which one would be better.

Sanjeev Kumar

Sanjeev Kumar (Expert)
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15 May 2010 it's a matter of fact and contract terms and conditions. as you explain here it seems a composite works contract. you can go for normal VAT taxability and claim standard labor etc. deduction and / or opt composition scheme for discharge output VAT liability. there is no one line answar and advice for best option without all facts and transaction.