We are transporting our own equipments for conducting civil work at each site in kerala and out side kerala carying with form no15 mentioning tha, it is not for sale. it is purley for work execution and after that it will be taking back from the site. There is no transfer of sale. Whether this will come under vat tax payble ? please guide me . if any old orders you were having, please give me a copy.Because now the Assessing officers are saying these are also sales and not disclosed in the vat retrun.? please help me.
Similarly Some of the parts for equipments and machinery , we are purchasing in interstate purchase.This is purely for our work execution. not for sale.Now the Assessing officers are saying these are also sales and not disclosed in the vat retrun.? please help me.
In order to constitute a taxable sale, there should be transfer of property from one person to another for a valuable consideration. Here it is stated that you are transporting your own equipment for conducting civil work at each works site inside and outside Kerala (On which basis?) carrying with form No.15 delivery note mentioning that, it is not for sale. In such circumstances if the transfer of equipment is for execution of works contract undertaken by you, what is the amount exigible to tax under the provisions of the KVAT Act? You have not specified your roll in your question in order to understand the issue.
If equipment transfer is a right to use any goods for any purpose whether or not for a specific period, you are liable to pay 5% of such transfer value at all such points under Sec.6(1)(c) of the said Act. So in order to give proper solution under the Act and Rules, you have to disclose actual facts of the transportation. If you are providing true and correct details in respect of actual activity and transactions, a proper reply with solutions if any can be provided through this forum itself.Thanking you.
Sir Thanks for your reply. Our company is registered at Trichur -kerala.. We got work order for to execute civil piling work at Kasargode. The materials are supplied by the awarder at his worksite at his cost. Our duty is to execute the piling work with our labour . So our work is purely labour contract.work . To conduct this work we have to transport our used equipments , Tools and Machineries to work-site through Delivery note no:15 . In that we have mentioned that, it is not for sale and it will be taken back after completing our work... and we will write value of that machineries also . After seeing these through check post transactions, the Vat department oficials raised notices to us by demanding to pay taxes for these transactions.(The Labour work will not come under the purview of works contract department . So we are unable to show these labour work contract value in the vat return.) How we will able to solve this issue.
The Other WCT transactions which involves transfer of materials , we are showing in vat return and paying taxes acordingly. in quarterly.
It is your statement that it is a labor contract. All the materials required for execution of works contract will be supplied by the awarder in his site. In such circumstances you should obtain work order or copy of the agreement executed and inform the same to the WC Officer concerned. In the absence of transfer of property, it will never attract tax u/s 6(1) or compounded rate of tax u/s 8 of the KVAT Act. Whenever you are transporting equipment by using form 15 delivery note specify the labor contract undertaken by your company and enclose a copy of the work order or agreement to prove genuineness. Transportation documents shall always transparent in all respects
While returning the equipment from works site, interstate or local, delivery note used for upward transport may enclose along with delivery note using for inward movement in order to avoid detention by the authorities