CST in Interstate Works Contract

[Srivatsan Krishnamachari]

Dear Experts,

We got work contract from Public sector unit for construction of Toilets at schools within Telangana and other states. We are paying under WCT 5% on composition scheme within Telangana and for dispatches to other states, can i send the material under Interstate Works contract @ 2% CST? or do we need to pay full rate of CST. If any provisions are there please revert back.

Thanking you,

SRINIVAS

[YAGAY andSUN]

Dear Srinivas,

The moot question is whether you would be able to collect Form C or not? If yes, then you can and if not, then you cannot.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Interstate works contract tax: concessional CST available only if dealer obtains prescribed Form C; otherwise full tax applies. Concessional CST on materials dispatched under an interstate works contract is conditional on the contractor's ability to obtain and furnish Form C; intrastate composition under works contract taxation does not confer that concession. If Form C is procured, concessional CST applies to the interstate supply of goods for the contract; if not, the standard interstate tax rate applies.