One of my clients is engaged in work contract (local as well as central) of laying pipeline for domestic water and irrigation projects. The terms of contract are say Rs.10/- per meter. In this case, the time period of contracts varies between 10 days to 180 days. The bill for work contract is raised eiter partially or fully after verification of work by the officials of the concerned contractee. Therefore, transfer of property in the goods can be transferred only after verification and raising of bill. The material is also provided by the contractor. The question is how to send the goods at site for construction work when there is no sale. What documents should be used.
Another question is that Under Delhi VAT, in case of indivisible projects of labour and material, specific deduction of 25% or more is allowed for labour and job work for computation of taxable turover. What is position in case of projects executed out of delhi.
Can 'C' or 'D' forms be issued by the contractee for concessional purchase of material.
Pls reply somebody quoting relevant rules or sections where applicable.
Thx
Bhim Ahuja
I am from orissa,
Section/rule arrangement are different from state to state, howerver basic scheme is same throughout india.
In case of work cotnract transfer of property takes place when goods are appropriated. I.e used in execution, for sake of calculation and administrative convinience WCT is assessed after billing.
One can take balance material left from site, by there challan supported by declaration.
Regards
Balaji
CAclubindia
