Clarification - CST, VAT + CST

[ashish kalra]

How can we take up interior works contract jobs outside delhi. We are registered in Delhi and pay 12.5 % VAT . Although CST is applicable, but we are not dealing in goods , but entire works contract. Some suggestions have guided us to open offices in gurgaon, noida and make it as branch offices. Is it viable. Its too expensive. We need to know how can we still take up work from say Noida, Gurgaon from our Delhi office only. We also wish to purchase both from Delhi & Gurgaon, Noida. We are stuck up. Pls. help.

Posts / Replies

[Surender Gupta]

Though you need to consult some expert on VAT but I am of the opinion that, on works contract, VAT is levied in the state in which contract is executed. However, in some states if TDS is being deducted by the contractee, you may not be liable to further VAT in such state. However, if you wish to make some tax planning in accordance with the provisions of related state, you may be required to open an office in that state and obtain VAT registration to comply with the formalities accordingly.

[ashish kalra]

Sir can we have some more opinions pls.