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.

[Guest]

VAT return requires reporting of 'taxable turnover' only. As labour portion is deductible for the purpose of arriving at the taxable turnover, the same need not be reported anywhere in the VAT return. However, the details may be required for verification at the time of VAT audit/assessment.

AI Summary

Taxable turnover reporting: labour portion of works contract deductible and need not be shown on the VAT return. VAT returns must report only taxable turnover; the labour portion of a works contract is deductible in computing taxable turnover and need not be shown on the return. The taxable portion should be entered in the works contract column of the DVAT return, while details of the deducted labour component should be retained for potential VAT audit or assessment.