Contractor

[tirthram arondekar]

Does an contractor liable under VAT for the contract receipts for which already service tax paid? if yes at what rate, how to treat input tax?

How to arrive at VAT.

AI Summary

Contractors Liable for VAT on Works Contract Services; Section 28 Allows 1% TDS Deduction with Specific Exemptions A contractor inquired about VAT liability on contract receipts where service tax has already been paid. The response clarified that under the Goa VAT Act, contractors are liable for VAT if the work falls under 'Works Contract Services.' It includes various construction and repair activities. Section 28 allows for a 1% TDS deduction from total payments under works contracts, except when payments are below one lakh rupees annually or material costs are under 10% of the contract value. It was advised to consult legal counsel for further clarification.