Taxation law

PRACHI (Querist) 22 May 2009 This query is : Resolved
I want to know what is the billing method of Civil Contractor. The bill comprises of civil work, furniture work, painting work and demolition work. I want to know how vat is levied and if the receipts are less than Rs.10 lacs, service tax number is necessary

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A V Vishal (Expert) 22 May 2009
Dear Prachi,

From the contents of your query, it is evident that the contractor has agreed for all the services mentioned by you, what is the total turnover of the contractor since it will determine the taxability. Further, the contractor has two options under VAT for payment of tax, one is with maintaining the full books of accounts where he can claim benefit of Input tax against the output tax and two, he can claim it under composition method, where he need not maintain books of accounts and cannot hence claim input tax but will have to pay it on certain percentage basis. Further if his gross receipts is less than 10.00 lakhs he need not register and pay service tax.

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