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TMI BlogWhich Taxes are Applicable for Work ContractX X X X Extracts X X X X X X X X Extracts X X X X ..... 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, etc.) from market Also taking a service of Powder Coating / Anodizing on Aluminium of Steel form outside service providers then we can fabricates all of above do a installation (fixing) on si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te. So while preparing an Inoice Which Taxes are Applicable How many Percentges. VAT/ CST/ ST/ WC VAT --- ? Thank you, - Reply By Pradeep Khatri - The Reply = You will have to charge WCT @ 8% as mentioned in the MVAT Act. - Reply By Jatin Mistry - The Reply = Thank you for your valuable reply. I have discussed with my accountant today. He has also agreed to charge only WC VAT @ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8% on total value of work. But I have 1 more query as follows: he had also suggested that, there is 1 more option that we can also raise a bill as follows: Saperate Bill for MATERIAL (i.e.: Aluminium Window/ Door/ Partition, etc.) with M VAT @ 12.5% Saperate Bill for LABOUR - Installation on site - Fixing (i.e.: only Labour Charges for Fixing on site) with M VAT @ 12.36%. is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it also acceptable or not ?? pls guide as soon as possible. Thank you. - Reply By vijay kumar - The Reply = Dear Sir, since it is a case of works contract, it is liable to VAT (as per your state VAT act) on the material value sold (which is stated to be 8%) and Service Tax on the labour component. Presently, service tax is 12.36% on the labour component with full cenvat facility or u ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y go for composition scheme of 4.8% without any cenvat facility on inputs. Thus, as stated u will have to raise two separate invoices - one for material value and another for service value. For your information, there is a threshold exemption upto Rs.10 lakhs in each Financial year on service tax. - Which Taxes are Applicable for Work Contract - Query Started By: - Sumt Patel Dated:- 30-3-2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Value Added Tax - VAT-CST - Got 3 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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