Works contract and cst

This query is : Open

vinay hingu (Querist)
Follow

25 February 2013 One of Our client is interior decorator doing interior work he has opted for composition scheme under works contract so in given scenario the dealer gets the set off reduced by 36% i.e. if 100 Rs vat paid towards purchases than dealer will only get set off of Rs. 64 which is local purchase in our case we have local sale + OMS sale so what we have done is taken ratio of Local:OMS sale and than bifurcated the set off according to the ratio for Example 40:60
1)so my Query is that should we reduce our full set off by 36%???? or
2) reduce the local sale i.e. 40 by 36% and take full set off against OMS sale ???

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

02 March 2013 Your query has some doubts. First you are in which state. In some states when you are doing general sale also composition is not permitted. Further ,such apportioning of input tax on prorata basis is not allowed in all cases.You have to calculate the liability at actuals.What is OMS sale?...MJK

vinay hingu

vinay hingu (Querist)
Follow

04 March 2013 SIR THANK YOU FOR YOUR REPLY

I AM FROM THE STATE OF MAHARASHTRA

AND OMS STANDS FOR OUT OF MAHARASHTRA STATE
THAT IS OUT OF MAHARASHTRA SALES

Upgrade to CAclubindia Pro. Subscribe Now!