CA AYUSH WADHWA (Chartered Accountant) (157 Points)
19 September 2010Please tell me whether a real estate agent dealing in construction contracts also would have to get himself registered under both service tax & delhi vat also ? and he would be bifurcating the invoice into service & material components to charge both of them respectively...! correct me if i am wrong because i doubt i am wrong
Ankit Singla
(B.Com (Hons.), CA)
(88 Points)
Replied 23 September 2010
HI Ayush
contruction contracts where material and labour supply both are provided and combined invoice is made without bifurcating material and supply then WCT @ 4% is charged on the gross amount.
Also no input credit is provided on the tax paid on purchases.
it is the liability of contractee to deduct wct on gross amount charged and pay to the department.
In Delhi i think WCT rate is 2 % for registered dealers
You should register under Delhi sales tax dept.
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