Rakesh Kumar (Sr. Finance & OPS Executive) (87 Points)
02 February 2012Hi All,
I am new to this blog and this is my first question to all.
I need upate regding the following:
If an organization engaged in "Construction and Engineering Services" then VAT is applicable or not?
If VAT is applicable then what is the % of VAT?
Thanks in Advanance
Regards,
Rakesh
Ravi Prasad
(Self employed)
(148 Points)
Replied 02 February 2012
You have not mentioned to which State you are referrring to? Further, you have to explain the nature of work done. Whether it involves any transfer of property in the form of goods? Only if it involves transfer of property in goods, VAT is applicable.
Rakesh Kumar
(Sr. Finance & OPS Executive)
(87 Points)
Replied 02 February 2012
It Is for UP State and the Company engage to Construction of Buildings and Engineering services like road
Ravi Prasad
(Self employed)
(148 Points)
Replied 02 February 2012
Since there is transfer of property in goods involved in the execution of civil works contracts in the form of goods like cement, asphalt, sand etc from the contractor like you to the Government, you are liable to pay tax on the transfer of property in goods.
See the VAT Rules of your state to know how to calculate the taxable turnover on which you have to pay taxes. See the schedules for the rate of tax.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
