DVAT Return

[Guest]

Dear Expert,

I am filing return of DVTA and CST for a company which is covered under WCT 80:20 .Now in form 2A and 2B what amount I should show ie net 80 or 80 taxable and 20 exempt.

Eg. Total Contract value=100 now vat is payable on 80 ie 12.5% of 80 so in form 2B what amount i will show ie 80 or 80 taxable and 20 exempt ?

Thanks in Advance 

[YAGAY andSUN]

Since you are opting 20% rebate for services/labour charges as mentioned in the Schedule under DVAT Act under the provision of WCT, then you would have to show the grosss value of the contract minus the value of abatement as mention in the Schedule, it would come out to 80% value of the contract on which you have to pay charge and pay the WCT under the DVAT Act, 2005.

AI Summary

Contract valuation under DVAT WCT rebate: report net assessable value after abatement as the taxable base for VAT and WCT. Apply the Schedule abatement for the WCT rebate and report the gross contract value less that abatement; the resulting net assessable or taxable value is the basis on which VAT and Works Contract Tax are computed and paid in the DVAT return.