VAT & Service TAx

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2010 I have understood form my reading of the law, that on construction services in Delhi taxes are....

on 75% of the project value 12.5% VAT
& on 33% of the project value 10.3% Service Tax

i.e. We are being taxed on 75+33=108% ???of the contract value...

Is this interpretation correct ??

Lekh Sood

Lekh Sood (Expert)
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05 March 2010 No,it is 12.5% of the 75% of the contract value and 10.3% of the 33% of the contract value.This effectively means tax of 12.774% on the contract value.