Home Forum VAT + CST Month 4 2011 2011 (4) This
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VAT under composition scheme vis a vis service tax - VAT CSTExtract 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?
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