Unbilled Revenue - VAT - Reg

[VENKATESH AYYAGARI]

Dear Sir

Is VAT applicable on Unbilled Revenue under Works Contract?

[DR.MARIAPPAN GOVINDARAJAN]

Non issue of invoice attracts penalty. However VAT is applicable in this case.

AI Summary

VAT applicability on unbilled revenue under works contracts affirmed; non-issue of invoice attracts penalty and liability.
Value Added Tax applies to unbilled revenue under works contracts; taxpayers must account for VAT on earned but unbilled amounts. Non-issue of an invoice attracts a penalty in addition to the VAT liability.