Rakesh Garg, FCA
Effective Rate of Tax on Certain Works Contract Activities Reduced
under the Delhi VAT Act
with effect from 20.09.2013
[vide Notification No. F.3(16)/Fin.(Rev-I)/2013-
For the purpose of computation of taxable turnover in works contracts: Where amount of labour, services and other like charges is not ascertainable from the books of accounts of the dealer (being works contractor) or where he fails to produce documentary evidence in support of such charges, the amount of such charges shall be calculated on the basis of percentages specified in the Table given in Rule 3(2) of the Delhi VAT Rules.
The Government has amended the said Table with effect from 20.09.2013 and standard percentage of certain activities has been increased (and thus effective rate of VAT has been decreased, if claiming labour & services on percentage basis), as under:
|
Sl. No. of Table |
Nature of Activities |
Percentage of Labour & Services |
Effective Rate of DVAT |
||
|
Up to 19.9.2013 |
From 20.9.2013 |
Up to 20.9.2013 |
From 20.9.2013 |
||
|
(A) |
(B) |
(C) |
(D) |
(E) |
(F) |
|
20 |
Book-binding |
20% |
50% |
10% |
6.25% |
|
21 |
Textile processing such as dying, fabrication, tailoring, embroidery and other similar activities where textile is supplied by the contractee |
20% |
50%
|
10% |
6.25% |
|
22 |
Electro plating, electro galvanizing, anodizing, powder coating and other similar activities |
20% |
50%
|
10% |
6.25% |
|
23 |
Re-treading of old tyres |
20% |
40% |
10% |
7.5% |
|
Note: Effective DVAT rate has been calculated as:- 12.5 * [100 (–) C or D] % . Applicable rate of works contract (other than printing works contract) in Delhi VAT is 12.5%. |
|||||
(Author may be reached at ssarca.rgarg@gmail.com)
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Download Notification No. F.3(16)/Fin.(Rev-I)/2013-
