hai Friends
I want know whether vat should paid on on whole sale or is there any deductions.
i heare that for contractors labour is allowed as deduction. Is it correct?
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 12 March 2012
Mr Roopanand,
Out of the receipts of works contract the value of labour and services with profirt is allowed to be deducted before VAT calculation.....MJK
Anoop
(Service)
(345 Points)
Replied 13 March 2012
Vat is applicable on materials sold in normal course. So, there is no question to levy tax on labour/services and in this case you can get input credit. There is one more option for a dealer who want to opt composition tax at fixed % (2% / 4%) on total amount of contract. This option is better for small dealers but you can't get any vat input set off.
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