Clarification - DVAT return

[Guest]

we are doing works contract and chargin vat on 85% of value of contract @ 12.5 %. we show the value of 85% against works contract column in DVAT 16. where we have to shoe the remaining portion of 15%. whether it should be shown against exempted sales.

AI Summary

Clarification on reporting works contract under DVAT: Only taxable turnover reported; labor portion deductible but may need verification. A query was raised regarding the correct reporting of a works contract under the Delhi Value Added Tax (DVAT) return. The individual inquired about how to report the remaining 15% of the contract value, as 85% is charged with VAT at 12.5% and shown under the works contract column in DVAT 16. The response clarified that only the taxable turnover needs to be reported in the VAT return. The labor portion, which is deductible, does not need to be reported but may be required for verification during a VAT audit or assessment.