https://www.taxtmi.com/forum/issue?id=105914 State VAT/WCT is territorially governed and an unregistered out-of-state supplier may lead the purchaser to bear or deduct tax and lose input credit. Practical measures to avoid registration in the purchasing State include negotiating a lump-sum project price; having in-state purchases invoiced directly to the purchaser so they can claim VAT credit; arranging interstate supplier invoices directed to the purchaser under the interstate tax mechanism; invoicing supplies from the supplier state under the interstate tax rate; and invoicing the profit/labour portion from the supplier state as a service subject to service tax, leaving only income tax TDS. en-us Tue, 23 Jul 2013 18:10:35 +0530 Thu, 23 Jan 2025 15:57:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=105914 State VAT/WCT is territorially governed and an unregistered out-of-state supplier may lead the purchaser to bear or deduct tax and lose input credit. Practical measures to avoid registration in the purchasing State include negotiating a lump-sum project price; having in-state purchases invoiced directly to the purchaser so they can claim VAT credit; arranging interstate supplier invoices directed to the purchaser under the interstate tax mechanism; invoicing supplies from the supplier state under the interstate tax rate; and invoicing the profit/labour portion from the supplier state as a service subject to service tax, leaving only income tax TDS. Discussion-Forum VAT / Sales Tax Tue, 23 Jul 2013 18:10:35 +0530 https://www.taxtmi.com/forum/issue?id=105914