VAT Consultancy Services

We offer the following Services:

Vat consultancy for real estate/work contract

Value added tax is a state level tax which is levied on sale of goods, hiring of goods and work contract. Ever since the introduction of VAT, compliance requirement has increased considerably and thus requires expert services for maintenance of records and calculation of tax liability. In order to help clients with the complexities involved with VAT, our Vat Consultants provides you with several VAT related services.

1. Helps to get Vat registration 2. Pricing the product/ services 3. Filling the periodical returns

Basis of Valuation:

Tax on the sale or purchase of goods includes a tax on the transfer of the property in goods (whether as goods or in some other form) involved in the execution of a works contract and such transfer, delivery or supply of any goods shall he deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made

Determination of turnover of sale of goods involved in the execution of a works contract.

Value of the goods in works contract=Value of the entire works contract (Less) charges towards labour and services.

The tentative Computation of taxable turnover and tax liability on work contract

  Gross Contract receipts

XXXX

  Less: Labour and other like charges (including GP)

XXXX

  Taxable Turnover

XXXX

  Tax on Non Declared goods

....

  Tax on Declared goods

....

(A) XXXX

  Less: Deduction for Input Tax

  a) 14.5% Material purchases

....

  b) 5.5% Material purchases

....

  c) 5% purchases

....

  d) 0% on purchases

....

(B)XXXX

  Net Tax payable

(A)-(B) XXXX

Sale of goods included in work contract

Subject to other provisions of these rules, the tax on turnover of sale of goods where such sale is affected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a work contract shall be computed on the taxable turnover of sale of taxable goods. For the purposes of determining the taxable turnover of sale of such goods, the amounts specified below shall be deducted if included in the gross amount received or receivable in respect of the works contract:-

a)

all amounts representing the value of goods consumed in execution of the works contract; in which property in goods is not transferred in the execution of the works contract;

b)

all amounts representing the value of exempt goods and amount of profit thereon;

c)

all amounts representing the rent paid or payable in respect of machinery and other equipments taken on hire for use in the execution of such works contract;

d)

all amounts representing the value of service and labour and profit thereon;

e)

all amounts representing the value of goods in which property has been transferred in the execution of the works contract as a result of sale in the course of inter-state trade or commerce;

f)

all amounts representing the value of goods in which property has been transferred in the execution of the works contract as a result of sale in the course of export of goods out of the territory of India or sale in the course of import of goods into the territory of India;

g)

all amounts representing the value of goods in which property has been transferred as a result of a sale outside the State;

h)

all amounts representing the value of non-vat goods purchased from within the State in the circumstances in which the dealer executing the works contact himself is liable to pay tax on turnover of purchase of such goods;

i)

all amounts representing value of non vat goods where such goods are purchased by the dealer from a registered dealer.

j)

the amount representing the cost of establishment and other similar expenses of the contractor to the extent it is relatable to supply of labour and services, and profit thereon.

k)

amount paid to sub-contractor for the execution of works contract on furnishing certificate obtained from the assessing authority of subcontractor certifying that:-

 

I.

The subcontractor is registered dealer under the Act;

 

II.

The subcontractor has disclosed turnover in the relevant return of tax period and has paid tax according to the provisions of the Act.

l)

Proportionate amount of actual cost of land required to be used in construction of building, by the builder contractor where cost of such land is included in the amount received or receivable from the purchaser.

Labour & Services included in work contract

  • Labour charges for execution of the works.
  • Amount paid to a sub-contractor for labour and services
  • Charges for planning, designing and architect's fees
  • Charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract.
  • Cost of consumables such as water, electricity, fuel, etc., used in the execution of the works contract the property in which is not transferred in the course of execution of a works contract.
  • Cost of establishment of the contractor to the extent it is relatable to supply of labour and services.
  • Other similar expenses relatable to supply of labour and services.
  • Profit earned by the contractor to the extent it is relatable to supply of labour and services.
Getting VAT registration under Karnataka Value added Tax Act 2003.
VAT is a Multi-Stage tax levied at each stage of the value addition chain, with a provision to allow input tax credit on tax paid at earlier stage, which can be appropriated against the VAT liability on subsequent sale
Registration and payment of Taxes under VAT ACT can be of two types

1. Registration and payment of Taxes under Full VAT.
2. Registration and payment of Taxes under Composition Tax.

At the time of Registration option has to be selected – Full VAT or Composition Tax.

However, no registration is required where the annual turnover is below Rs 5 lacs. While if the business is carrying out inter-state sales, regardless of the quantum of turnover, the company is mandatorily required to register itself.

Applicability

VAT is applicable to those who are into the business of Sales/ Manufacturing/ Distributors/ Wholesalers/ Software Industry (Direct Exports).

Forms to be filled
  • VAT Form 1
  • VAT form 4 for Partnership (along with Form 1)
  • VAT for 3 for additional Places of Business (along with Form 1)

Information/Documents required for filling up Registration Forms

  • Name of the Dealer
  • Name of The Company
  • Postal Address
  • Telephone No
  • E-Mail Address
  • Details of Director/ Managing Director/ Partners / Proprietor – Address, Ph.No, E-Mail ID
  • Details of Authorized Signatory
  • Nature of Business
  • Date of Commencement of Business
  • Date of Birth / Date of Incorporation – (in case of Company)
  • PAN No of Partnership firm
  • Commodities description
  • Bank Account details
  • List of Directors (in case of Companies)
  • Details of the Company / Individual – in case of Proprietorship

The application forms to be supported with the following documents

  • Incorporation Certificate of Company (in case of Companies)
  • MOA & AOA (in case of Companies)
  • Rental Agreement/ Lease Agreement of Company / Proprietorship
  • Company PAN Card / Individual PAN card in case of Proprietorship
  • Address Proof of Director – Lease / Rental Agreement
  • ID Proof of Director – Pan Card / Election Card/ Passport/ Driving License
  • Registration copies with other Departments like. VAT, PT, Labor dept.
  • True copy of Board resolution empowering company representatives as Authorized signatories.
  • Partnership Deed in case of Partnership firm
  • Passport size Photograph of Director
  • The Name Board of the company / Office would require to be displayed.
Preparation of VAT (Value Added Tax) returns & Filling of electronic VAT returns
Filing of VAT Returns
  • VAT returns will be filed on Monthly or Quarterly basis.
  • Company / Proprietorship firm with turnover within 15 lakhs is required to file returns on Quarterly basis. Turnover more than 15 lakhs per annum is required  to file returns on monthly basis
  • VAT form 100 is used for filing monthly returns
  • VAT Form 120 will be filed monthly / quarterly registered under composition tax
  • Monthly Returns has to be filed within 20th of succeeding month.
  • Quarterly Returns has to be filed within 15th of succeeding month of every quarter.
  • Filing of returns in VAT 120 is within 15 days after the end of relevant month.
Assist in obtaining statutory forms.
  • Form 505
  • Form C
  • Form F
  • Form E1 & E2
  • Form I
Assist in getting Lower VAT Rate certificate.

We help to to get lower vat rate certificate.

  • Applicable for work contractor
  • Contract copy should be submitted
  • Letter showing the tentative calculation
Filing and pleading appeals wherever necessary.
  • Assisting the customer to reply to the notice received by Vat Department
  • Representing on behalf of the client
Luxury Tax (LT)
  • Getting Luxury Tax Registration
  • Consultancy on matters related to Luxury Tax.
  • Preparation and filing of Luxury Tax returns.
  • Appearing for LT Assessments.
  • Filing and pleading appeals wherever necessary.
Entry Tax
  • Entry tax return filing
  • Filing and pleading appeals wherever necessary.