Works Contract in MVAT

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Sumit (Querist)
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08 January 2011 Respected Sir,

Can you plz tell me,
1.Definition of "works contract" in MVAT.
2.VAT rate applicable to works contract.
3. Is the service tax applicable to the portion of works contract on which vat is not payable.

Thanks,
Sumit

B R Ramesh

B R Ramesh (Expert)
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08 January 2011 Hi

the work contract means

the work carried over useing MEN & METERIAL to compleate the project.

like construction of road & bridges & dams, Residential & commercial building or any fabrication, laying, eraction , installation of men & material.

rate of VAT is 4% under composition scheme for the whole invoice amt

rate of servixe tax is 4.12% under compmosition scheme for the whole invoice amt