Vat on interior design in andhra pradesh

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2012 One of the company dealing in interior desinging in Andhra pradesh wants to register for works contract.
I heard there are 3 methods of calculating VAT and service tax under works contract.so which one will be beneficial for the company

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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27 March 2012 Mr Author,
The three methods could be : composition under ST ,composition under VAT or direct payment of VAT and ST on the taxable amounts at the applicable rates.It is always better to maintain proper accounts to determine correct taxable amounts under ST and VAT laws and pay taxes accordingly. You will have to pay a higher amount of tax if you opt for easier method i.e. composition.....MJK