Works contract Definition in Delhi VAT (DVAT)
Works contract includes any agreement for carrying out for cash or for
deferred payment or for valuable consideration, the building
construction, manufacture, processing, fabrication, erection,
installation, fitting out, improvement, repair or commissioning of any
moveable or immovable property. (Refer Section 2(1) of DVAT Act, 2004)
“Agreement” though not defined in VAT Act, has been cleared by
judiciary as to be construed as provided in Indian Contract Act, 1872.
Therefore, in works contract, the contractor promises to carry out some
obligations like the construction of building, fabrication of machinery
etc in consideration of the employer promising to pay a certain amount
in cash or in the form of some other valuable consideration. (Refer
Larsen & Toubro Ltd. vs State of AP (2006) 148 STC 616 (AP)
CA Ankit Gulgulia
how much tax rate opting composition on works contract from f.y 2.011 to 2012
ReplyDelete