Legal Question in Construction Law in India

Dear Sir / Madam,

We are engaged in construction activity & for VAT purpose, we have been qualified under Works Contract composition scheme where we charge 5% on work done amount & 4.944% service tax on work done amount. As per Sales Tax Officer, we should charge VAT (5% on civil work contracts) on work done amount + 4.944% Service Tax (work contracts).

According to our understanding, Tax on Tax should not be charged i.e. VAT @5% to be charged on only work done amount.

Please advise us.

Regards,

Nitin Karia


Asked on 2/19/13, 5:17 am

4 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

19.02.2013

Dear Nitin,

(Dapodi, Pune, Maharashtra)

The value of taxable service shall be the gross value excluding VAT but including all items of material component as well as labour service component.

Regards

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 2/19/13, 10:26 am
Jayesh Desai Jayesh Desai

Please retain a lawyer for this purposes.

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Answered on 2/19/13, 4:17 pm
Sanjay Kalra Sanjay Kalra & Associates

Engage a good sales Tax lawyer to answer all your doubts and queries.......Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

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Answered on 2/19/13, 10:58 pm


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