Gentlemen
our delhi client having branch in kerala prefered to pay vat under composite tax for works contract. Kindly advise with notification if he has to calculate vat on works contract amt added service tax amt or on works contract value only.
rgds
Clarification Sought on Including Service Tax in VAT for Works Contracts Under Kerala VAT Act; C Form Issue Noted. A query was raised about the applicability of VAT on works contracts under the Kerala VAT Act, specifically whether VAT should be calculated on the works contract amount including service tax. A respondent referenced a Supreme Court decision, stating that service tax should not be included in the sale price if a statutory provision allows the dealer to pass the tax to the purchaser. However, a contrary clarification under the Kerala VAT Act suggests adding service tax to the VAT calculation. The original inquirer also sought guidance on re-generating online C forms due to incorrect purchase bill dates. (AI Summary)
TaxTMI 
TaxTMI 
