Vat applicability

[palaniappan thirukalathiappan]

Dear Sirs,

 I wish to know VAT/WCT applicable on the below transaction.

We have placed purchase order on X for making up Floor with iron  and cement at our Haryana unit. Our order is placed on the contractor located at Delhi.

 Please revert back what exactly tax need to be fallowed DVAT / WCT or any other ?

Thanks & Regards

SRINIVAS

[RAM AVTAR]

there are two option

first to obtain vat registration with haryana vat department and pay tax according to haryana vat .

second treat as central sales tax

AI Summary

VAT applicability: choose VAT registration in the consuming state or treat the transaction as Central Sales Tax inter state supply.
For a Haryana unit contracting a Delhi-based contractor for construction, two alternative tax treatments are suggested: obtain VAT registration in Haryana and pay Haryana VAT, or treat the transaction as Central Sales Tax as an inter state supply.