My client is undertaking a works contract from a limited company for construction of factory building at Rs. 50 lacs. Pl let me know works contract taxation liability in karnataka with respect to the following.
1. Whether composition scheme or vat scheme is benefecial .
2. whether our contractee ie. Limited Company is obligated to deduct tax at source U/s 9 A of KAVAT act.
3. If we are in VAT scheme whether the company has to deduct TDS at 12.50% or at 4%.
4. under VAT scheme what is correct calculation of tax liability for material and labour portion, show with example pl.
5. contract is building construction, whether the company can take input tax credit on the vat charged in the contract bill.
6. whether under COT scheme can I collect VAT seperately in the bill.
7. What is the correct rate of tax for civil works contract e., at 4% or at 12.50% [not in COT scheme] and schedule 6 of the Act says it is 12.50%.
Pl. anybody help me and thanks in advance.
CAclubindia
