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 ???
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
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