Work contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2012 We have been awarded a Work Contract in Banglore. What is the Vat effect, Entry Tax, Labour Cess in Banglore if we open local office in Banglore. Or we work from Delhi. is any other tax is their

CA. Hari Kishan

CA. Hari Kishan (Expert)
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09 February 2012 Would suggest that you could take registration in Bangalore as a Non resident dealer under the composition scheme under the VAT,, however since you are under works contract .. composition scheme shall still allow you to make purchases from outside the state.. there shall be no input tax credit avialable.. and tax payable@ 5% of the receipts.. entry tax payable on causing entry of schedule goods into local area.. profession tax enrollment for the employer and registration for employee is also required.. for further queries you can mail to pc_chhajer@yahoo.com

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2012 Dear Hari

If we gte registered in composite scheme can we purchase from outside on C form

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CA. Hari Kishan

CA. Hari Kishan (Expert)
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15 February 2012 should you register as a works contractor under composition scheme.. it permits interstate purchase as per sec 15(5). Hence you should be allowed to issue C form.