https://www.taxtmi.com/article/detailed?id=5839 The note explains two elective VAT regimes for works contracts: a composition method taxing the full contract value at composite rates without input tax credit and without books-of-account, and a non-composition method taxing only taxable turnover (contract value adjusted for exempted inputs), requiring accounts and permitting input tax credit. Under non-composition, taxable turnover is apportioned among different rate categories in proportion to input categories, taxed at applicable rates, and reduced by eligible input credit to arrive at net VAT payable. Annual election is binding for the year; switching is prospective and constrained. en-us Mon, 22 Sep 2014 08:24:02 +0530 Mon, 22 Sep 2014 08:24:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5839 The note explains two elective VAT regimes for works contracts: a composition method taxing the full contract value at composite rates without input tax credit and without books-of-account, and a non-composition method taxing only taxable turnover (contract value adjusted for exempted inputs), requiring accounts and permitting input tax credit. Under non-composition, taxable turnover is apportioned among different rate categories in proportion to input categories, taxed at applicable rates, and reduced by eligible input credit to arrive at net VAT payable. Annual election is binding for the year; switching is prospective and constrained. Articles Value Added Tax - VAT and CST Mon, 22 Sep 2014 08:24:02 +0530 https://www.taxtmi.com/article/detailed?id=5839