New User / Register | Bookmarks | Annual Subscription | Feedback |
Login: Stay
| Forget Password |
           
TMI - Tax Management India. Com  

Recent Discussionss:

Cenvat credit on returned goods after 6 months. time period for submit of proof of export Haryana VAT Reversal of Cenvat Credit supply made under Notification N.33/2012-CE dated 09.07.2012 against SHIS DUTY CREDIT SCRIP Sending of defective parts of capital goods to the foreign supplier for repair and return and availing of cenvat credit there on. Errection & commissioning service CIN NO. & IEC NO. service tax reverse charges Service tax credit availment on cctv cameras Interpreter service
 
Discussions Forum
Home Forum VAT - CST - GST Month 4 2011 2011 (4) This
← Previous Next →
 

VAT under composition scheme vis a vis service tax - VAT - CST - GST

 
Issue Id: - 2979
Dated: -26-04-2011
By:- Rishi Raj
VAT under composition scheme vis a vis service tax

 

Company has appointed a civil contractor for building and the cost break is given below:

Contract Price                           - Rs. 100 crore inclusive of VAT

Service Tax @ 4.12% on 100  - Rs 4.12

Total                                              Rs. 104.12

 

 

·It seems that contractor has gone for composition scheme under VAT  (U.P VAT) because no VAT component is shown separately in the invoices as required under composition scheme.

·Service Tax has been charged @ 4.12 % applicable for work contract service under composition scheme.

I have following queries to address the issue :

1. Is it possible for the civil contractor to calculate the VAT liability basis actual material value or standard deduction for labour / services cost ( say  30% for civil contracts) inspite of paying VAT at fixed % under VAT composition scheme?

2. What is the rate of VAT in uttar pradesh under composition scheme?

3. In the very case, service tax is being charged on Rs 100 cr which is inclusive of VAT . However the same is to be charged on excluding VAT amount.  How to compute the excluding VAT component which is under VAT composition scheme?

Post Reply
 
Previous Posts
 


Dated: - 09-08-2011
By: - Shruti Gathani

Hello Mr.Rishi Raj,

Answer to your first querry,

the civil contractor has the following options.:

1. Composition scheme as he has charged.

2. Charge Service tax @ 10.3% on Amount = Gross Amount Charged in invoice for the civil contractor's service excluding VAT amount - Value of goods on which VAT is paid (as accepted under VAT laws).




Dated: - 09-08-2011
By: - Shruti Gathani

Hello Mr.Rishi Raj,

Answer to your third query.:

If VAT has been paid under Composite Scheme, then Service tax also has to be charged at composite rate because the value on which VAT has been paid cannot be worked out.


 
 
Previous Next

 

what is new what is new

UpdatesKnowledge SharingSubscription CommunicationNewslettersMore Options




Go to Mobile Website Go To Top
© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.