Concept of Interstate Works Contract

[Srivatsan Krishnamachari]

Dear Experts

Kindly clarify me below points related to Interstate works contract.

we have mfg unit Telangana and we received works contract to be executed at Bihar. We are purchasing all the material required for executing this works contract at Telangana and sending the same to Bihar except some items. In taxation point of view, How much % of sales tax or CST i need to pay and how much Excise amount i need to pay.and Service Tax amount. Is there any exemption notifications related to Excise & Service tax.

Thanking you in advance.

Regards

Srinivas

AI Summary

Interstate Works Contract Tax Implications: Guidance Sought on Sales Tax, CST, Excise, Service Tax, and Potential Exemptions A user inquired about the tax implications for an interstate works contract involving a manufacturing unit in Telangana and project execution in Bihar. They sought guidance on sales tax, CST, excise, and service tax, including potential exemptions. Respondents advised providing more detailed information about the project and contract specifics to offer accurate advice. One expert suggested purchasing materials locally in Bihar to potentially benefit from VAT credit, subject to exclusions. All responses emphasized the need for comprehensive details to address the query effectively.