Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
12 February 2013
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 12 February 2013
Re rubberisation of rollers is a works contract under VAT. Therefore the material portion of the same would attract the local VAT which can be on actual basis or as per ad hoc deduction of service+ labour value as set out in the rules. In Karnataka it is payable on 75% if ad hoc deduction taken.
If actuals are taken then under rule 2A the ST is payable on the actual after deduction taken for material. If not actual then for repair jobs etc it is 70% of the value.
Therefore preferable that the same is on actual basis to avoid excess payment of either taxes.
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