Dear Team
I have one client who is doing Civil contract works , Following is the discription of his works:-
1. Civil Works with material
2. Paying Tax on @ 5% on Invoice Value
3. Take Full Input Credit of Goods Purchased From Register Delar
Now My Querstion is :-
1. Can he take input credit
2. any notification is there for composit contract
Kindly help me with ur valuable reply and comment on the same
Thanks & Regards
saurabh Singh
09773679465
Understanding Input Tax Credit Eligibility for Civil Contractors: Composition vs. Non-Composition Tax Rates and Rules A discussion on a forum involves an inquiry about input credit eligibility for a client engaged in civil contract works who pays a 5% tax on invoice value and claims full input credit on goods purchased from registered dealers. A respondent clarifies that input tax credit (ITC) cannot be claimed if the client opts for the 5% composition rate. However, ITC can be claimed if the client pays a 14.5% tax rate under non-composition terms, with specific rules applicable in Andhra Pradesh, including a 90% input eligibility for set-off and a one-month timeframe to opt for composition after receiving a work order. (AI Summary)
TaxTMI 
TaxTMI 
