How should a civil contractor registered under works contract head both in Service Tax and Gujarat Value Added Tax Act should raise invoice for the works contract?
At what rate he should charge V.A.T. & Service Tax on works contract bill?
Whether Service Tax & V.A.T. both will be applicable?
31 March 2010
Guj VAT not sure as different practices in different States. Ser. Tax- Options 1) If under regular scheme under VAT ( payment after labout deduction) then on balance of value after deducting value on which VAT paid ST maybe paid- 12/2003. 2) Composition scheme - 4.12% on gross construction amount. ( irrespective of option under Guj - VAT) 3) Possibility of availing credit of CED on inputs ( cemment/ steel) and use the same for payment of ST on the gross amount.