15 October 2009
I am doing Construction works on contract basis. I Want to know do I need to take VAT registration for that or Servie Tax Registration?
18 October 2009
You are a contractor executing works contracts. You need to take (a) VAT Registration as you have to discharge VAT on the transfer of property in goods involved. Secondly, your contractee will issue you a TDS Certificate under the relevant VAT Act, which should be submitted to your assessing authroity along with your monthly return, after claiming set off benefit. (b) Secondly, you need to discharge your service tax on the labour component of your works contracts (unless the nature of work is expressly exempted one). Thirdly, if you are procuring any goods from outside your State and intend using them in your works contracts, you need CST regn. also.
In case of VAT, you will be definitely given a TDS certificate and hence the registration is mandatory; whereas in the case of service tax, the threshold limit of Rs.10.00 lakhs is available.
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