04 November 2013
My client is in Karnataka, building and selling residential flat he is just issuing bills against receipt of advances without any bifurcation of land, material and labour......... what % of service tax and Vat he should pay on advances as he is receiving from his customers..........and which scheme is better composition/ works contract / regular one.
04 November 2013
I am not fully aware of Karnataka VAT, but generally the provisions in all the states are more of less similar.
As per WBVAT, works contract where the components cannot be segregated, 1/3 is deemed to be labour services and the balance 2/3rds is subject to VAT. I am sure the provisions of KARNATAKA VAT ACT would be more or less similar.
Service tax on Construction of residential complexes - and commercial complexes, entitles availment of abatement at 70% or 75% as the case may be and service tax on the balance amount is payable @ 12.36%.
For VAT the registration should be under thye head "Works Contractor' and under Service Tax the service head should be Construction of residential complexes - and commercial complexes.'
CAclubindia
