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U p vat on works contract

shailesh agarwal (professional accountant) (7642 Points)

02 October 2013

my client has a contract value 655500

-------------70% material=458850

-------------30%-labour=196650

vat deposited @ 14% = on 458850-=64239

is it right

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3 Replies

Shankar (Student) (29 Points)
Replied 02 October 2013

Is the total contract value is a composite contact which include material and services? Dealer can choose various options to discharge WCT VAT as per UP Vat act....one such option is under abatement roote dealer can avail 80; 20..i.e On the total contract value dealer can avail 20% deduction towards services and can pay wct vat on 80% value...

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MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 04 October 2013

You need not deposit the entire amount of tax calculated @ 14%.The input tax paid on purchase of taxable goods can be deducted from the output(14% calculated by you) tax and the balance has to be paid/deposited along with the returns. In the normal course thee input credit will be around Rs 2.5 lakhs.You may have to pay only around Rs2lakhs .......mjk

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shailesh agarwal (professional accountant) (7642 Points)
Replied 05 October 2013

THANKS TO DEAR SHANKAR AND RESPECTED SIR SHRI M J KRISHNAMURI JI

HERE I FORGET TO WRITE THAT MY CLENT HAVE NO PURCHASE BILLS

AS HE WORKED IN RURAL AREA FOR MOBILE TOWER FOUNDATION WORK AND PURCHASED ,SAND,BRICKS GITTI ,CEMENT ETC WHERE SELLER HAS NOT ISSUED ANY PURCHASE BILLS

THATS WHY I AM CALCULATING THAT CALCULATION

IN REF- HE HAS A CONTRACT WITH GTL CO WHICH IS PAYING HIM 14% FLAT VAT

I WANT TO KNOW IN WHICH SECTION OR ACT I CAN DO THIS- IN U P VAT ACT