Which Taxes are Applicable & How many % ?, VAT + CST

[Jatin Mistry]

We are a Contractors & Fabricators of Aluminium & Steel - Windows/ Doors/ Partitions/ Ceiling/ Structural Glazing/ Cladding work etc.

We Purchase a Material (i.e.: Aluminium/ Glass/ Plywood/ Hardware/ ACP, etc.) from market & Also taking a service of Powder Coating OR Anodizing on Aluminium or Steel from Outside Service Providers & then we fabricates all of above items & also do a installation (fixing) at site.

Our work Criterial includes are as follows:

MATERIAL: Material (eg.: Aluminium, Steel, Glass, Ply, ACP Panel, Hardware, etc.)

POWDER COATING OR ANODIZING PROCESS: (done from outside processors)

LABOUR: (To be paid to Labours for making & installation on site)

TRANSPORTATION CHARGES: (Paid to Tempo/ Truck/ Taxi/ Transporter for delivering of material on site)

OVERHEADS: (Rent paid for accomodation nr. site, Travelling Charges for Labours, Management, etc.)

PROFIT: 

So while preparing an Tax Invoice Which Taxes are Applicable & How many Percentges.

VAT/ CST/ ST/ WC VAT --- ?

From Our Clients, 1 Client is a Building Contractor and they do a various projects for their clients.

Recently we have received a Work order from them and they told us to charge a taxes as follows:

on 67% of Total Bill Value - M VAT @ 12.5%

on 33% of Total Bill Value - ST @ 12.36% will be applicable.

Is it perfect or not acceptable .. ?  Pls Suggest specially in our case.

Thank you,

Posts / Replies

[Pradeep Khatri]

Dear Jatin,

Please refer the reply submitted on 12-04-2012 in reponse to your query.  Further, your supplier has mentioned the rates depending on the abatement method.  Though you can rely on these rates but if you chose the option as mentioned in the reply submitted on 12-04-2012 it would be according to the provision of MVAT Act.

Further, you must discuss this matter with your counsel/consultant.

Regards

Pradeep Khatri