We are a Contractors & Fabricators of Aluminium & Steel - Windows/ Doors/ Partitions/ Ceiling/ Structural Glazing/ Cladding work etc.
We purchase a material (i.e.: Aluminium/ Glass/ Plywood/ Hardware, etc.) from market & Also taking a service of Powder Coating / Anodizing on Aluminium of Steel form outside service providers & then we can fabricates all of above & do a installation (fixing) on site.
So while preparing an Inoice Which Taxes are Applicable & How many Percentges.
VAT/ CST/ ST/ WC VAT --- ?
Thank you,
Contractor Seeks Tax Guidance: VAT, CST, Service Tax, and Works Contract Tax Under MVAT Act Discussed A contractor and fabricator of aluminum and steel structures sought advice on applicable taxes for work contracts, specifically regarding VAT, CST, and service tax. One respondent advised charging a Works Contract Tax (WCT) at 8% under the MVAT Act. Another suggested issuing separate invoices: one for materials with a VAT of 12.5% and another for labor with a service tax of 12.36%. A third response clarified that VAT applies to material value, while service tax applies to labor, with an option for a composition scheme at 4.8% without cenvat benefits. There is a service tax exemption for amounts up to Rs.10 lakhs annually. (AI Summary)
TaxTMI 
TaxTMI 
