Clarification - DVAT return, VAT + CST

[d.v. gupta]

we are doing works contract and chargin vat on 85% of value of contract @ 12.5 %. we show the value of 85% against works contract column in DVAT 16. where we have to shoe the remaining portion of 15%. whether it should be shown against exempted sales.

Posts / Replies

[V Ramanujam]

VAT return requires reporting of 'taxable turnover' only. As labour portion is deductible for the purpose of arriving at the taxable turnover, the same need not be reported anywhere in the VAT return. However, the details may be required for verification at the time of VAT audit/assessment.