vat tax on builder

This query is : Resolved

CA Vikas Agrawal (Querist)
Follow

21 March 2008 sir,
we r builder, we buy land and give the works contract to contractor but in contract we provide them CEMENT & STEEL, and in contract agreement we mention that builder provide u steel & cement at no profit no loss,so contact amount is otherthan cement & steel cost.

my querry is how the accounting will done for Cement & Steel, and whether we liable to pay any M.P.VAT, AND WE R PVT. LTD. CO., whether we r liable to deduct WCT under M.P.VAT.

sunil

sunil (Expert)
Follow

05 May 2008 Dear,
you have to pay entry tax u/s 3(2) of Entry tax act of M.P.

yes u have to deduct vat as tds @2% if the value of contract is more than three lacs including material.