Can any one answer?

619 views 4 replies

rahul kumar

Article assistant

67 Points Posted on 23 December 2011

I have a querry regarding works contract under respective state VAT's, My querrie is that when a person is executing WC transactions, he even operates interstate transactions,

For suppose when a person in A.P is executing the work contact for a person in Maharastra. To execute this when the contractor is using the goods from Karnataka state and those goods goes to Tamilnadu for finishing and these finished goods are used in for executing WC in Maharastra.

Now my question is :

1.Please tell me the levy of tax all yhe transactions.

2. When in some cases if the Contractor not under Composition sub contracts to a Contractor under composition the how will the levy and tax credit goes?

3. Please tell me all the possible Issues.

Thanks in advance,

Regards,

Rahul,

8801555141,

rahulrockingstar1 @ gmail.com

Replies (4)

rahul kumar

Article assistant

67 Points Posted on 24 December 2011

Guys some body pls reply.....

RAJU

LEARNER

1089 Points Posted on 24 December 2011

1. When movement of goods from AP to Maharashtra occasions for works contract (that is with specific intent for use in works contract), the work done by the dealer would be an Interstate Works Contract and will be liable for CST in the State of AP.

If the dealer in AP procures goods in maharashtra for the contract in Maharashtra, it will be liable for Local VAT and is payable to Maharashtra Govt by getting himself regd under Maharashtra VAT Act..

Vendor in Karnataka would charge CST to AP dealer.

2. Value of work done by a sub-contractor (local contractor) subject to proof that he has discharged his liability, the main contractor will get deduction equal to sum of work executed by the sub-contractor.

Regards

Dharma