Liability for DVAT registration

[BAL KRISHAN GARG]

Dear All Members, A is doing job work in a factory premises of B on the raw material provided /related to B in electrical home appliances alongwith his labour and billing is being made on the basis of completion of work by A and his labour on monthly basis . My query is whether he is liable to be registered under DVAT ? Billing will be approxmately Rs. 4 to 5 Lacs per month basis .although there is no agreement between A and B but the understanding is that payment will be made on piece rate basis and there is no work contract between them . if yes , on what rate of dvat he is to made upon B .I will be highly oblidge . Thanking you , BAL KRISHAN GARG

AI Summary

VAT registration liability depends on whether a job worker is a labour contractor or an independent contractor.
Liability to register for VAT depends on whether the person performing work on another's materials is a labour contractor or an independent contractor: mere provision of labour as a labour contractor does not attract VAT registration, whereas an independent contractor is liable for VAT and must be registered and taxed as if operating from his own premises; the applicable rate and tax treatment turn on that factual characterisation.