This presentations discusses the finer aspects of how VAT was being levied on Works contract. And the controversies related to the judgement of Gannon Dunkerly, options available for deductions under VAT for composite contracts
Direito Constitucional - Art. 103 da CF 88PreOnline
Conteúdo Gratuito de Direito Constitucional para concursos públicos - Art. 103 da CF 88. Mentor Concursos. Professor Ronaldo Botrel.
Cursos Grátis (Vídeo Aulas): http://mconcursos.com/cursos-gratis
Registrar's Caveat under Land Law II.
Contains;
1. Function of a Registrar
2. Effects of Registrar's Caveat
3. Who can apply for Registrar's Caveat
4. Remedy of an Aggrieved Party under RC
5. Cases involved
This is a presentation highlighting the intricacies involoved in work contract. A work contract is though a single contract for material and labour but invites the levy of service tax, sales tax, tds and above that reverse charge mechanism. Though a bit complicated yet intresting
Direito Constitucional - Art. 103 da CF 88PreOnline
Conteúdo Gratuito de Direito Constitucional para concursos públicos - Art. 103 da CF 88. Mentor Concursos. Professor Ronaldo Botrel.
Cursos Grátis (Vídeo Aulas): http://mconcursos.com/cursos-gratis
Registrar's Caveat under Land Law II.
Contains;
1. Function of a Registrar
2. Effects of Registrar's Caveat
3. Who can apply for Registrar's Caveat
4. Remedy of an Aggrieved Party under RC
5. Cases involved
This is a presentation highlighting the intricacies involoved in work contract. A work contract is though a single contract for material and labour but invites the levy of service tax, sales tax, tds and above that reverse charge mechanism. Though a bit complicated yet intresting
This presentation discusses the intricacies involved and the modifications in the taxation of works contract in various VAT Regimes. It highlights the critical issues to be asked when a project company enters into any state for its operations.
Case Laws on Construction and Works contractsandesh mundra
A compilation of various Judgments of Service Tax and VAT on relevant issues in works contract and construction sector is made. Stands of High court is highlighted on complex issues arising in Constructions and taxation of works contract. A brief description of matter, appellant and petitioner's contemplation and order passed by authorities is also included to add more value.
This judgement takes one through the judgement of Kone Elevators in great detail. Various contentions, arguments and the final verdict of the court have been adequately covered in this judgement.
Service tax on Works Contract (Post Negative List)sandesh mundra
This article briefly explains the basics of service tax on works contract after the negative list regime. Also covering some of the old disputed issues in the service tax regime. It also touches upon the basic aspects of Cenvat Credit moreso in an environment, where both taxable and exempt services are being rendered.
This presentation takes one through the impact of budget 2014 on the direct tax provisions. Efforts have been made to simplify the amendments in the best way
This ppt explains in very brief the facts about GST implementation in India. The taxes which shall be subsumed within GST and the present taxes which shall remain out of GST ambit.
Service tax on works contract (Pre-Negative List)sandesh mundra
This ppt gives a glimpse of service tax payment in india as applicable to works contractors before the negative list. This is very relevant to builders and developers. Service Tax posers and illustrations were also covered by the speaker during the presentation.
Supreme Court Judgement - L&T / K Raheja (VAT on Builders)sandesh mundra
This presentation takes one through the details of recent Supreme Court Judgement in the case of Larsen & Toubro, which was a review of K Raheja Judgement. The judgement has a severe impact on the tax aspects of builders and real estate developers. It redefines the definition of works contract and levy of VAT on sale of flats and commercial premises
This ppt is a comprehensive presentation on various aspects for the entities working in the construction domain. Starting from Tendering to Budgeting and going on to indirect tax aspects like VAT and service Tax.
Social housing development seminar, June 2017, NottinghamBrowne Jacobson LLP
Our social housing development seminar with Ridge Property and Construction Consultants covered the following topics:
- procurement and state aid issues in social housing development
- identifying and implementing development opportunities.
Framework of Goods and Service Tax Act in India sandesh mundra
Efforts are made to show the present structure of VAT, Service Tax and CST in brief. Present Constitutional framework is added along with constitutional amendment required to be made for introducing GST. GST's proposed structure, components, exemptions, rates of tax, exclusions, issue of composite supplies, legislative powers of central and state government, structure of GST council, scope of work of council and suggestions for implementation is added to give a concise picture.
Washington State legislative changes from 2011 (reciprocal bid preference law), 2012 (bills that passed and didn't pass), and 2013 (potential legislation affecting re-authorization of Alternative Public Works contracting.
Real estate transactions Under taxing lawGST Law India
The following presentation enumerates the taxing structure for real estate transactions and gst rates along with a comparison of the previous tax structure with the present structure under GST. it also discusses service tax on work contracts, service tax on renting, credit linked subsidy scheme, valuation of taxable supply, input tax credit, exemptions for builders, housing society.
An overview of our organisation, nature of services offered by us in the field of Works contract, scope of tax planning in Inter-state works contract and an expertise solution to multi state VAT complexities under works contract. Some of the Organizations to whom we have rendered our Services. Our contact details.
UK Adjudicators are the largest multi-disciplinary adjudicator nominating panel in the United Kingdom.
We offer free adjudicator nominations and also a capped fee scheme
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
In this presentation, the concept of Affordable Housing is discussed from various angles such as income tax and GST. The PPT also analyses various components of Affordable housing scheme. It also takes into consideration various practical scenarios which are discussed in the form of case studies. The affordability as per public lending institution has also been covered. The presentation also covers various policies and programmes undertaken by the government for promotion of the same.Lastly, it also covers the impact of anti profiteering under the scheme.
After introduction of RERA, West Bengal has come up with its own legislation West Bengal Housing Industry Regulatory Act, 2017. There are various critical issues in this emerging law which can be addressed with the help of decisions and orders of numerous states.
This presentation covers a multidimensional view on impact and effect of GST on industry, economy, assessee, department and Government. An attempt is made to give justice to the multidimensional view of how things work in the industry and the future of GST impact on these stakeholders.
Complications of GST for Real-Estate and Developerssandesh mundra
This presentation contains the categories of units available with the developer as on the appointed day and the controversy attached with each category of unit. The presentation precisely covers all the controversies that could come up for the given category of unit.
An attempt to summarize the crucial aspects of maintaining records under GST is made. Apart from this, the presentation includes all types of audits proposed under GST regime. The system of return filling that the Group of Ministers are finalising together with GSTN officials and stakeholders is also included in the presentation. It also includes issues that may arise during filling of annual return and reconciliation statement.
An attempt to compile relevance of contractual clauses, technique of claiming back lost exemptions through doctrine of promissory estoppel, effect of repeals and omission and related judgments, is made. An overview of legal aspects for ongoing contracts is included.
Issues faced by Realtors and works contractorssandesh mundra
We have listed down several issues faced by Real estate and construction sector. A long list of issues are included separately for builders and works contractor for transition and post GST period.
Presentation contains cases and judgements delivered by courts pre-GST regime. A brief summary of all caselaws is made and an attempt is made to provide a bird's eye view of litigations arising in GST.
Presentation is prepared with the object of simplifying the interpretation issues and providing guidelines to read the rate schedules. Methods and mechanism of claiming tax free exports is also explained.
Goods and Service Tax in India is one of the biggest tax reform in Indirect Tax Regime. It is a destination bases tax levied on supply of Goods and Services. It includes impact of GST on several sectors. It also includes development of GST by way of notifications, circulars, press releases and other other compliances under GST.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. Taxation
Central State
Government Government
Direct Taxes Indirect Taxes Indirect Taxes
Goods – VAT, Octroi,
Excise/CST/Cu Service Tax Luxury Tax,
stoms Entry Tax
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3. • Problem given to Jinee
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4. Contents
• Constitutional provisions
• What is works contract
• Works contract back-ground
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5. Constitutional Provisions
Article - 246
Schedule VII
List-1 (Union List) LIST- 2 (State List)
Entry 92-A Entry 54
Taxes on the Sale or Purchase Taxes on the Sale or Purchase
of goods other than news of goods other than news
papers. Where such sale or papers, subject to provisions
purchase takes place in the of Entry 92 A of List 1
course of inter-state trade or
commerce.
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6. • Supreme Court in a very old case of State of
Madras v. Gannon Dunkerley & Co. held that
– No tax can be levied on Works Contract
– No sale of goods involved in movable form
Works Contract to avoid Sales Tax
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7. Constitutional Amendment
46th Amendment made to the Constitution from February 2, 1983
Outcome of the above:
• Permitted the States to levy tax on the Sale of goods involved in execution
of all work contract.
• States have been given power to separate the contract between work and
the labour and services
• Identifying whether the goods retained their original identity after the
work was executed or had been merged, integrated or becoming part and
parcel of the works, buildings etc.
All the States to power under this Constitution Amendment and made Amendments in their
respective Sales Tax Law to levy tax on such sale either by making separate legislation or by
amendment in existing sales tax law
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8. What is Works Contract ?
• 46th amendment to the constitution does not provide any definition of
works contract.
• Works Contract is generally defined under CST and various State
Acts, as:
“Works Contract means a contract for carrying out any work which
includes
assembling, construction, building, altering, manufacturing, processing,
erection, installation, fitting out, improvement, repair or
commissioning of any movable or immovable property.”
• Predominant intention of the parties to the contract is not to sale or
purchase the goods but to carry out certain work for a lump sum
price
• Poser 1
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9. Petitioners had relied on the following rulings in support of their plea that
there is no transfer of property in ink and consumables in the jobs of
printing in the contracts which were service contracts and passing of
property if any is merely incidental and not intended at all:
• R.M.D.C. Press (112 STC 30)
• M/s. Rainbow Colour Lab & Others (118 STC 9 S.C.)
Respondents on the other hand had relied on the following judgments:
• Sarvodaya Printing Press vs. State of Maharashtra (93 STC 387) as
approved by the Supreme Court — There is transfer of property in ink.
• Associated Cement Companies Ltd. vs. Commr. of Customers (124 STC
59) — Rainbow Colour Lab is no more good law
• Matushree Textiles Ltd. (132 STC 539) — Transfer of property in
colours and chemicals in the changed form of shade in the job of
printing and dyeing of cloth.
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10. • The works contracts are not normal sales.
• For example, at the site of construction of a building, before
the Construction (works contract) commences, the goods
like cement, steel, sand etc. are lying but after the
Construction a building (immovable goods) comes to an
existence. This is the difference between the ` Normal” sale
and the “deemed sale” in the indivisible works contract .
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11. Basic Sale of Goods vis-à-vis Works Contract
Sale of Goods Works Contract
Taxed as actual Sale : Seller & Buyer Taxed as Deemed Sale : Contractor &
Contractee
Absolute property of the maker when In WC, it is never an absolute property
produced / manufactured. Later on sold of the maker.
to buyer
The sale is ‘chattel as a chattel’ i.e. In WC, article produced becomes the
‘goods’ are sold as ‘goods’ property of buyer without first
becoming property of the maker.
Primary function - supply of materials Primary function - work and labour
Incidental - work or service Incidental - materials are supplied
TDS provisions are not applicable TDS provisions are applicable
Also works contract per se, does not include transfer of goods
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12. VAT –
The Three words which have really tormented the contractors
Contractor
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14. Registration Requirement
REGISTRATION:
Turnover Threshold –
Casual dealer
or auctioneer Turnover of taxable sales exceeding Rs.10,000
All Others Total Sales or Purchase turnover of more than
Rs.5,00,000 AND
turnover of taxable goods exceeding Rs.10,000
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16. Types of contract
• Supply of Materials and Labour
– Works Contract (e.g. Construction of a building, roads, bridges, dams etc.)
• Supply of labour and supply of materials is incidental to the contract
– Not a Works contract (e.g. Cleaning, overhauling, lubricating, greasing of an
old machinery etc.)
• Pure Labour Contract – may involve materials for executing contract
– Not a Works contract (e.g. Semi-finished material supplied to Job-worker for
further processing, tailor doing stitching work)
–Poser 3
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17. VAT Basics
• Different acts for different states
• VAT a cost to most clients unlike service tax
• VAT is payable in all Works Contracts which
involve transfer of property in goods.
• Since the value of the Contract is indivisible,
various issues are involved with respect to
offering the VAT Liability.
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19. Valuation options under
Works Contract
• Actual Labour • Composition
deduction • Standard Labour
deduction
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20. • Impact of exercising an option can be
significant.
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21. • Basic Modes available in each state:-
– Composition – Pay flat rate of tax on the turnover towards civil
contracts, for e.g. 0.60% in Gujarat (No out-state purchases allowed), 4%
in Orissa, 3% in Rajasthan, 2% in Madhya Pradesh. Advisable in case of
Turnkey Contracts with significant material portion.
– Actual – Identify the material consumed against the Running Account Bills
raised during the period. Advisable when major materials like Cement /
Steel are being supplied by the client.
For Ex. Value of Work is Rs. 20 Crores.
Expected cost of Transferable materials (VAT Rate – 4%) is 4 crores.
GP Rate is expected to be 20%.
VAT under Composition (M.P) – 2% of Rs.20 cr = Rs. 40 Lacs
under Normal Scheme – 4% of (Rs 1 cr) = Rs. 4 Lacs
Where 1 cr is the allocable GP to Transferable Purchases
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22. • One of the paths is taking actual
deductions….
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23. Supreme Court Judgement in the case of
Gannon Dunkerley & Company (88 STC 204)
Total Contact Value : xxxxx
Less : Prescribed deductions:
a) Labour charges for execution of Works Contract xxxxx
b) Amount paid to sub-contractor for labour and services xxxxx
c) Charges for planning, designing & Architect’s fees xxxxx
d) Charges for acquiring machines, tools etc. on hire or xxxxx
otherwise
e) Cost of consumable in which property does not pass
to contractee xxxxx
f) Cost of establishment relating to supply of labour xxxxx
and sevices
g) Other expenses relating to supply of labour and services xxxxx
h) Profit of contractor relating to labour & services xxxxx
-----------
BALANCE = Taxable Amount xxxxx
-----------
Poser - 4
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24. WORKS CONTRACT TURNOVER- NON COMPOSITION METHOD
Analysis of prescribed deductions:
a) Labour charges for execution of Works Contract:
The value consists of mobilisation of men and material and
establishment of site office etc. As these are preliminary expenses
not involving value goods cannot be subjected to tax.
b) Amount paid to sub-contractor for labour and services:
Value relatable to sub-contractors turnover where sub-contractor is
engaged only for labour and services not involving supply of goods
Deduction available only for amt paid to registered sub-contractor if contract
involves usage of material.
c) Charges for planning, designing & Architect’s fees:
Value for planning, designing and architects fees relating to
construction of building or plant. As the expenses are in the nature
of services hence eligible for deduction
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25. WORKS CONTRACT TURNOVER- NON COMPOSITION METHOD
Analysis of prescribed deductions:
d) Charges for acquiring machines, tools etc. on hire or otherwise
These goods are either taken on hire or purchased as assets for use in the
process of execution of works contract. However, since the goods are neither
incorporated in works contract nor sold to the customer there is no transfer of
property in them and hence excluded for the levy of VAT. Nevertheless, Lease tax
or VAT is payable to the vendor from whom they are acquired.
Depreciation - L&T - 34 VST 53 – Karnataka High Court
e) Cost of consumable in which property does not pass to contractee
These are the items such as water, electricity, fuel, lubricating oils, electrodes etc,
which are getting consumed in the process of execution of works contract and
hence the property therein is not transferred to the contractee and hence are
excluded for the purpose of levy of tax.
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26. WORKS CONTRACT TURNOVER- NON COMPOSITION METHOD
Analysis of prescribed deductions
f) Cost of establishment relating to supply of labour and services
This cost is relatable to facility given to labor such accommodation and other
facilities to make them available at job site for purpose of carrying out labour
and rendering of services in connection with execution of works contract.
g) Other expenses relating to supply of labour and services
These are expenses in the nature of overheads, rent, salary, electricity,
telephone charges expended relating to works contract job.
h) Profit of contractor relating to labour & services
This is the profit earned by the contractor over the cost of labour and services
expended by him i.e. difference between the value recovered from the employer
and the cost incurred by the contractor
Poser - 5
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27. Regular Mode
• The practical scenario is not so easy. In an unorganised sector, it
is very difficult to obtain the relevant details.
• Since the Sales Invoices are raised on a progressive basis, the
VAT liability also has to be discharged on a progressive basis.
• Identification of material transferred in each of the sales
invoices is required. But which is a big task if the inventory has
not been maintained in order.
• Further if you are working with a client like Reliance, when you
have 10-12 orders from 10-12 different group companies for the
same plant, the situation can be very tricky.
• Bifurcation of material into transferable and non-transferable
may not be easy.
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28. • Basic Step is to sit with the Site Engineer and bifurcate all
the purchases into Transferable and Non-Transferable. For
Ex- Wooden Materials which are used for Shuttering
activity, are not transferred to the client and are consumed
and booked as “Consumables, Stores and Spares”.
• You can then mark up the Purchases of Transferable with
GP rate and offer the relevant rate on a monthly basis.
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29. Calculation sheet
S.N Purchases Basic VAT Whether T GP @ 20% = Deemed Sales VAT VAT
o. Cost In Input in / NT 25% on Rate Payable
Rs. Lacs Rs. Lacs Purchases
1 Binding Wire 100 10 T 25 125 10% 12.5
2 Wooden Ply 20 2 NT - - - -
3 Shalitex Board 50 5 T 12.5 62.5 10% 6.25
4 Nails 20 2 NT - - - -
5 Insert Plates 150 15 T 37.5 187.5 10% 18.75
SS
TOTAL 340 34 375 37.50
Eligible Input 30 37.5
Credit
Pay Difference 7.50
Further you need to make sure that Non-Transferable Purchases of Rs. 40 has been Shown under
the Head of Consumables, Stores and Spares in P&L Account.
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30. Calculation of Sale Price of Works Contract
Composition Scheme – For contractors who do not wish to pay tax
based on the specific formula or after considering the lump sum
deductions
•Rate of tax is 0.6% or 2% of the total contract value as under:
0.6%- Construction contracts relating to roads, buildings,
bridges, pipeline laying, dams, etc.
2% - Other contracts including contracts for erection,
installations etc.
• Restrictions:
ITC not available on purchases
Contractor not eligible to issue VAT Invoice and also can not charge tax in
the invoice - Therefore, no ITC is available to the employer
Cannot import goods on interstate basis or branch transfer basis
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31. • Composition for Turnkey Contracts –
– Composition for Certain Sections
– Composition for Certain Line Items
– Composition by splitting up value on the basis
of separate working
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32. Types of composition
• For complete contract
– within 30 days of commencement of Work
• For Complete year
– Application within 30 days before to commencement of year
• For New Registered Dealer
– Within 90 Days from the effective date of registration
No condonation of delay – Matter Pending before Tribunal
Non receipt is assumed as granted
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33. Deduction in composition scheme -
• Deduction of amount of entire sub-contract shall be made,
if any
• - If composition scheme opted than deduction is
available for amounts paid to sub-contractors (Rule
28(8)(c))
– – Both registered and unregistered?
• No Labour deduction in Works Contract, if composition is
opted,
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34. Conditions for the composition Scheme:-
• Dealer must be Registered Dealer
• Conditions attached to Tax credit depending on state
to state
• Tax Invoice shall NOT be issued to the client
• Tax shall NOT be charged from the client
• Conditions attached with regard to making Interstate
/ OGS Purchases
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35. TAXABILITY UNDER COMPOSITION METHOD
Particulars Gujarat VAT Mah VAT Mah VAT (Non-
(Construction) Construction)
Total Billing 120 120 120
Less : Paid to 20 20 20
Registered Sub-
contractor
Net 100 100 100
Composition Rate 0.6% 5% 8%
Tax Payable 0.60 5.00 8.00
Input Credit - 3.00 (Tax paid 4.00 (64% of
in excess of Local VAT)
4%)
Net Tax to be Paid 0.60 2.00 4.00
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36. Continued…
• Once Application for composition is made and is not
rejected by the department, the acceptance is
presumed .
Option shall be final and is IRREVOCABLE.
(Rule 28(8)(i) )
Suggestion –
1. If you are applying a fresh registration, then its advisable to apply for
composition at the same time. (Permissible period of 90 days is likely to
lapse)
2. OGS items as Free Supply from the contractee.
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37. When no records are maintained
Adhoc deduction is available in each of the state –
In Gujarat under Rule 18AA specifies the rate of deduction
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38. Calculation of Sale Price of Works Contract
Indivisible Contract – in case separate books of A/c’s are not maintained – Lump sum deductions are
allowed
Description of Works Contract Percentage of
Deduction
Construction, improvement, repair of any building, road, bridge, dam, canal or 30%
other immovable property
Installation, fabrication, assembling, commissioning or repair of any P&M 15%
Installation, fabrication, assembling, commissioning of Air conditioner, air cooler 10%
Assembling, fitting, re-assembling, improving, producing, repairing, furniture, 20%
fixtures (interior decoration)
Construction, fabrication, assembling, commissioning, repairs of bodies on 20%
chassis of motor vehicles
Overhauling or repairing or dismantling of any motor vehicles, vessels of every 20%
description meant for plying on water or any vessel propelled by mechanical
means, any air craft, etc
Here deduction is available for amounts paid to registered sub-
contractor.
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39. Deductions under Maharashtra VAT
Sr.No. Nature of Contract % of deduction
1. Installation of Plant and Machinery 15
2. Installation of Air Conditioner and cooler 10
3. Installation of Elevators 15
4. Fixing of marble slabs, granite & tiles 25
5. Civil works like construction of Bldg. Roads etc. 30
6. Construction of Railway Coaches etc. 30
7. Ship and Boat building etc. 20
8. Sanitary Fittings, Plumbing, Drainage etc. 15
9. Painting and Polishing 20
10. Construction of Bodies of Motor Vehicles and Trucks 20
11. Laying of Pipes 20
12. Tyre re-treading 40
13. Dyeing and printing of Textile 40
14 Annual Maintenance Contract 40
15. Any Other Works Contract 25
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40. • Whether Sub-Contractors are liable to VAT?
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41. Client’s material
Client can issue his material for use in execution of works contract awarded to
the contractor where:
a) Material can be issued as free supply not resulting in either recovery or
sale to contractor or
b) Material can be supplied on recovery basis or can be sold to the
contractor .(N.M. Goel 72 STC 368 (SC) )
• Value of material supplied not resulting in either recovery or sale, is outside
the scope of works contract turnover and hence not liable for tax.
• Value of material supplied on recovery basis or sold to the contractor will be
included in the scope of works contract turnover and hence liable for tax
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42. Terms of Contract - Client’s material
To avoid litigation and tax being levied on value of the clients material, the dealer should
ensure to incorporate the following clauses in the contract.
a) The employer to issue his material free of cost..
b) The free issue material supplied by the employer shall be held in the custody of the
contractor as bailee.
c) Contractor to provide periodical statement of reconciliation.
d) The material in possession of the contractor shall not be diverted for any other use
e) The cost of the free issue material supplied by employer will be outside the scope of
contract and shall not be the part of consideration to be paid to the contractor.
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43. VAT – Input Tax Credit
• ITC available on all inputs used in works contract other than composition method
subject to fulfilment of conditions
• Broad Restrictions on ITC:
‒ CST purchases
‒ Capital goods used in works contract – Some of the States
‒ Lease goods
‒ Goods purchased from Lump sum dealer
‒ Goods not connected with business
‒ Vehicles, equipments, accessories or spare parts
‒ Fuel used in motor vehicles
‒ Goods used as fuel in generation of electrical energy
‒ Poser 6
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44. Is VAT applicable to Builders /
Developers?
VAT
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45. When is a job established as a Works Contract –
FACTS IN THE CASE OF SUPREME COURT JUDGEMENT
OF K. RAHEJA DEVELOPMENT CORPORATION
• Appellants were carrying on business as real estate developer.
• They entered into Development agreement with owners of land.
• The agreement was for carrying out construction on behalf of
somebody else.
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46. Facts Contd….
• The land owner transferred only the ownership of land to the
purchaser and the appellant transferred structure by a separate
agreement for construction.
• The appellants were carrying out construction as developers for the
prospective purchaser.
• Agreement entered into before the completion of the unit, was
considered as Works Contract.
• Agreement entered into after the flat or unit already constructed
would not be within the ambit of works contract.
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47. • On the basis of K Raheja, can we say that all
builders are liable to VAT?
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48. Latest……
• However Supreme Court on Aug 19, 2008 has referred
the judgment for reconsideration to a larger bench
considering the Writ Petition filed by L&T on the count
that the judgement has adversely affected the entire
construction industry.
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50. A small e.g. for Builders
Sale Value of Flat Rs.50 Lacs
Cost of Material Involved Rs. 20 Lacs
Cost of Labour Involved Rs. 10 Lacs
Market Value Land supported by Rs.5 Lacs
Valuation Certificate
(Advisable to show separately to avoid
litigation)
Profit Rs. 15 Lacs (30% Margin)
Tax under Regular Scheme Rs. 20 Lacs + Profit
Tax under Composition Scheme 0.6% on Rs. 45 Lacs
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51. Entry Tax related issues under VAT
Inward Movement
1. Cement / Raw Steel / Motor Vehicle are liable to entry tax.
2. Authenticated Form 403 is required.
3. Invoice / delivery challan / LR to be made available at checkpost
4. For normal Items, Form 403 without authentication is required.
5. Scaffolding Pipes are not covered.
Outward Movement
1. Branch Transfers – Work Order / Declaration Form / Form 402.
2. Relevance of F Form – Ambika Steel.
3. Having registration / Work order from other state.
Any checkpost related issues ?
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52. TDS Rate under GVAT
Person responsible for payment exceeding Rupees 1 crore for
works contract is responsible for deduction of tax at prescribed rates
TDS Rate : 0.6% in case of construction contract and 2% in case of others
Works Contractor is mandatorily required to obtain TDN No. from Commercial Tax
Department. Application in Form 706 to get TDN No. within 30 days of agreement.
TDS to be claimed in the year in which same is deducted and not in which the same is
?
paid.
Form 702 under Gujarat VAT to be attached with Invoice for lesser deduction.
Poser - 7
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53. 59A. DEFINITIONS - DEDUCTION AT SOURCE.
• (c). "specified sale price" in relation to the transfer of property in goods
(whether as goods or in some other form) involved in the execution of a works
contract, means
such amount as is arrived at by deducting from the amount of valuable
consideration paid or payable to a person for execution of such works contract,
the amount representing labour charges for such execution and the price paid
or payable for the goods purchased in the course of inter-state trade or
commerce or in the course of import of goods into the territory of India for the
use in execution of such works contract; and
• (d). "specified works contract" means a works contract, the specified sale price
of which exceed one crore rupees.
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54. Inter-state
WorksContract
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55. Background – CST Transactions
Position before 6th Constitutional amendment
• Only states were empowered to levy tax
• Interstate sale not contemplated
• CST Act was not in existence
• Branch transfers were not taxable
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56. Background – CST Transactions
Methodology of levy of tax
• Consumption Theory
As per provisions of Explanation to Article 286 (1) (as stood in the beginning), only consuming state
was competent to levy tax. State of Bombay v. United Motors (India) Ltd.(4 STC 133 )
• Nexus Theory
Theory of nexus resulted in levy of tax on same transaction by multiple
states. This theory was disapproved by Supreme Court in the case of
Popatlal Shah v. State of Madras (4 STC 188)
• Bengal Immunity v. State of Bihar (6 STC 446 )
It was held that the State Government cannot impose tax on sale or purchase of goods taking place
in the course of inter-state trade except when the parliament by Act so provides.
• 6th Constitutional amendment
The 6th Constitutional amendment was made on recommendation of Taxation Enquiry Committee.
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57. Jurisdiction for levy of works contract tax
• Prior to the decision of supreme court in the case of BAI States took liberty
levy tax on the entire value of the works contract including interstate
transactions on the assumptions that :
• A) In an indivisible works contract the transfer of property in goods is effected
in the state in which the contract is executed.
• B) Since the transfer of property takes place within the state the taxation field
for deemed sale in the nature of works contract was exclusively with in the
domain of Entry 54 of List II of the VII Schedule to the constitution and hence
the entire turnover in respect of works contract should be subjected to tax
under local law not withstanding the nature of interstate transactions involved
therein
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58. Amendment to CST Act – 11.05.2002
Consequent to the 46th Amendment to the Constitution of India, it became possible for the
states to levy tax on deemed sale transactions like works contract
Although Article 366 was amended to widen the scope of definition of sale to cover
deemed sale in it’s ambit, state could not levy tax on transactions relating to inter-state
works contract as;
a) there was no authority to levy tax on transactions relating to inter-state works
contract in absence of amendment to definition of sale to cover works contract
transactions therein under CST Act.
b) states were loosing revenue on transactions of inter-state works contract
c) CST Act was amended almost after two decades from 46th amendment enabling
states to levy tax on transactions of inter-state works contract effective from
11.05.2002
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59. Impact of CST Amendment
1) Consequent to the amendment to CST Act, with effect from 11.05.2002,
the definition of sale includes deemed sales.
2) Works contract under CST Act, has been defined under section 2 (ja) as
“Works Contract means a contract for carrying out any work which includes
assembling, construction, building, altering, manufacturing, processing,
fabricating, erection, installation, fitting out, improvement, repair or
commissioning of any movable or immovable property”
3) Despite wider scope of definition of works contract under CST Act, only
goods involved in the execution of works contract as defined under Article
366 (29A) (b) can only be taxed and nothing beyond that.
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60. Works contract v. provision under CST Act
• Execution of works contract in respect of immovable property like Lump Sum
Turn Key (LSTK) or EPC Contract, construction of buildings, bridges, dams or
in respect of movable property like repairs of machinery, equipments etc.
requires
a) sourcing of materials from outside the state
b) sourcing of material from outside the country or
c) dispatch of machinery and equipments outside the state or country after
repair
• These types of transactions in the nature of works contract can be taxed only
under CST Act.
• The relevant provisions for levy of tax contained in section 3. 4 and 5 of the
CST Act
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61. Works contract v. provision under CST Act
• Supreme Court in the case of Gannon Dunkerely and Co. (88 STC 204) (at page
No. 288) held:
“ We are of the view that even in absence of any amendment having been
made in the Central Sales Tax Act (after 46th amendment) expressly
including transfer of property in goods involved in the execution of works
contract, the provisions contained in section 3, 4, and 5 would be
applicable for such transfer and the legislative powers of the state to
impose tax on such transfers under entry 54 of the state list will have to
be exercised keeping in view the provisions contained in section 3, 4, and
5 of the Central Sales Tax Act.”
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62. Taxability of inter-state works contract
relating to repairs and servicing
• Normally the job is carried on movable goods / equipments
• After job is done the equipment is despatched outside state
• CST is levied in the state from which the equipment is despatched after
repair
• Taxable turnover to be determined by actual deduction method as
prescribed under CST Act.
• Set-off of local VAT paid on input used in works contract can be claimed
if the local VAT Act, so provides.
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64. Taxability of works contract transactions under CST Act
Normally goods used in the execution of a works contract fall under following categories
1) Manufactured/bought out goods dispatched for execution of works contract in another
state for
a) lump sum transfers for use in various contracts
b) transfer for use in manufacture of goods to be used in execution of works contract
c) use in specific works contract in pursuance of the contract received
2) Goods purchased from outside state in which works contract is executed for
a) use as raw material or components in manufacture of goods to be used in execution of
works contract
b) use in works contract as purchased as per billing schedule (sale occasioning inter-state
sale)
c) use in works contract after sale is effected to the employer under section 6(2) of the
CST Act
3) Goods imported from outside the country for
a) use in execution of works contract but not imported in pursuance of the contract
b) use in works contract but imported on behalf of the customer (Sale occasioning import)
4) Goods imported by the employer and given to contractor as free issue (FIM) for use in
works contract
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65. Taxability of manufactured/bought out goods dispatched by the
contractor for execution of w/c in another state
[2006] 144 STC 0605- State of Karnataka and others vs. ECE Industries Limited (Karnataka High Court)
Transfer of goods
________________________________________________________
Transfer of goods for spe-
Transfer for use in manuf- cific works contact in pur-
Lumpsum transfer for
acture of goods to be used suance of the contract
various contracts to be
in execution of w/c received
executed in another state
Goods despatched in pur-
Goods transferred are not
Goods are not transferred suance of the contract for
the specific goods as per
in pursuance of the use therein as despatched
specific contract contract received
To be treated as stock trans. To be treated as inter-state
To be treated as stock transfer.
F form to be obtained from Sale from despatching state.
F form to be obtained from
receiving state. No tax is No tax is payable in receiving
receiving state. No tax is
payable either in receiving state. Exemption to be claimed
payable either in receiving or
or in despatching state. Under Local Act.
in despatching state. However,
However local tax is payable (EEC 38 STC 475)
local tax is payable when used
on FG used in Works contract
in W/C in receiving state.
in receiving state.
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66. Taxability of goods purchased from outside state
Purchase of goods from outside state
__________________________________________________
Purchase of RM/Comp.for Purchases of goods, where Purchases of gods under
use in mafr. of goods to Delivery taken by contractor Section 6(2) for use in
To be used in execution for use in execution of works execution of works contract
of works contract. contract in the same form. in the same form.
1) Goods purchased are
1) Goods purchased are as 1) 4% CST is payable to
not as per billing
per billing schedule. vendor against Form C
Schedule
2) 4% CST is payable to 2) Subsequent sale to
2) 2% CST is payable to
vendor against Form C customer exempt u/s 6(2)
vendor against Form C
1) No tax is payable in
Local tax is payable on FG receiving state, being
manufactured and used in 1) Customer to receive material
purchases in pursuance
execution of works contract and give as FIM to contractor
of contract of sale
2) Contractor to raise bill on
(6VST374)
customer u/s 6(2)
2) Exemption to be claimed
under local Act.(6VST374)
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67. Some Tips :-
• Free Supply vs Price Deduction by Contractee
• If the client in his WO mentions VAT – Extra, WCT – Extra
• Unregistered sub-contractor is making any taxable
purchases,
• Compare outstate suppliers’ with CST rates with the
Gujarat suppliers’ before & After VAT rate.
• In case of stock transfer, if VAT reversal rate comes more
than 2% go for CST sales in place of stock transfer.
?
• VAT on Concrete is 15%, but VAT on Sand/Aggregate is
5%, so what you transfer is important. – Cement is Free issue.
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68. Back to Back Contracts
• L&T Judgement –
Property passes on from the Sub-contractor to the Client and
contractor is just an agent.
• Impact -
Mr X has awarded contract to Mr Y at Rs.100 cr.
Mr Y has sublet the complete job to Mr Z at Rs.80 cr.
Mr Y does not need to pay any tax on the portion of Rs.20 cr as there is no element of
transfer of property as per Sale of goods Act.
Suggestion – Projects with huge margins can be subletted to any sister concern to reduce VAT
? implications.
Section 80 Determination in the case of Paharpur Cooling Tower dated 15-4-2010 in Gujarat
VAT has reaffirmed the view.
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69. • Any queries on VAT
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