I need advise on the following point.
Received a Purchase order from local Govt. body containing 2 items: 1) Supply of instruments of Rs. say 20Lacs & 2) erection & commissioning job of these supplied instruments for Rs. 2 Lacs.( This job invloves erection material of about Rs. 25000 & rest is labour cost)
My querry is
1) Whether VAT of 12.5% will be applicable on item 1 ie on supply.
2) Whether Works Contract Tax will be applicable on item 2 only or on both the items of PO & at what %.
3) Like VAT, whether set off shall be available for Works contract tax also.
Hi, 1st Item tax as per State Rules for local VAT 12.5% or 4% as per inter state CST 2% 4% or 12.5% 2nd Item only Service Tax applicable Regards,
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