What is the method of calculation of VAT on Works Contract in Maharashtra. How to calculate VAT on Works Contract with G.P. Ratio Method. Please help me. Thnx in advance.
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 05 May 2014
Mr Atul,
VAT is payable on the transfer of property in goods(material value) involved in a works contract. For this purpose you have reduce the cost of labour and services(including apportioned GP) form the total receipts.On the material value also you have add profit and then charge VT at the applicable rate......mjk
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