Work contract
This query is : Resolved
20 October 2011
What is Work Contract , What is the Difference Between work Contract & Sales, and Vat is Applicable in Work Cotract ?
20 October 2011
Mr. Pravin,
Sale is simple transfer of goods aginst some consideration(money).When you involve some labour also along with sale then it becomes a works contract(e.g.construction of house, building body of bus,fixing electrcal fittings etc). VAT is leviable on the value of goods transferred in a works contarct.
MJK
Sale is simple transfer of goods aginst some consideration(money).When you involve some labour also along with sale then it becomes a works contract(e.g.construction of house, building body of bus,fixing electrcal fittings etc). VAT is leviable on the value of goods transferred in a works contarct.
MJK
21 October 2011
When the activity is composite in nature which includes price for goods and labour , job work..etc work contract comes into picture.. In sale there is only transfer of goods / material.
For vat computation in work contract their are various methods .. put logically we have to see that vat is required to be paid on the sale value of material portion in the total contract value..
if the material used are of different rates
eg. steel 5% , cement 12.5% than proportionately we have to decide our sale value...
Ca Mayur Zanwar
For vat computation in work contract their are various methods .. put logically we have to see that vat is required to be paid on the sale value of material portion in the total contract value..
if the material used are of different rates
eg. steel 5% , cement 12.5% than proportionately we have to decide our sale value...
Ca Mayur Zanwar
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
