Computation of VAT (Value Added Tax) skucov8865

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    VIKAS  KAMRA
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    Chennai/Tamil Nadu

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Did You Know

  • 1. Development agreements may be termed as works contract for the purposes of VAT.

  • 2. Determination of VAT in case of works contract depends upon the provisions under the State VAT Act.

  • 3. In general, three methods have been laid for computation of State VAT: (1) Regular Scheme - Labour & Services are determined on actual basis; (2) Regular Scheme - Labour & Services are computed on percentage basis; (3) Composition Scheme.

  • 4. VAT may be payable at the following times: (1) at the time of execution of agreement between land owner and builder; (2) after execution of agreement with a prospective buyer.