Works contract tax Karnataka

Originally posted by : PC C
	Whether a civil contractor can opt for composition scheme for a certain project and VAT scheme for few other projects in the same state?  If yes, then how to discharge the tax liabilty and which FORM to be filed VAT 100 or VAT 120. Also if a civil contractor is opting for composition scheme, then tax is payable @ 4% on the total consideration received as per the notification. What does total consideration mean.. can we deduct anything from this and if yes what are the deduction avialable from total consideration. Please revert,, with u r suggestions...

 Hi,

If a Dealer is registering, he can be either  Regular or Composition dealer.  Howerver, being under Composition scheme a Works contracter can collect VAT also.  If you see Form 120, a provision is made to capture VAT collected amount also.

With regards,

Subramanya

Hi,

There is an option to be registered in both VAT as well as COT. However such an option is only available for two different types of business. Since in your case type of business remains the same i.e. Civil Contracting, I don't think you can opt for both VAT and COT.

Total Consideration has not been defined. However there are various judicial pronouncements which would help in understanding the meaning of the same. There can not be any deductions allowed from Total Considertaion. Please refer the recent case of Suzlon Infrastructure Limited (2015 (4) TMI 25) Karnataka High Court - attached with my reply.