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Satish Chandar (Proprietor)     03 March 2015

Kerala tax clarification required

Hello,

I have received a supply and installation order from a customer in Kerala. I am a registered firm under Karnataka VAT & CST. I have to dispatch the materials to Kerala after which my team will reach there for the installation. 

The order value consolidated is Rs. 4,88,250 + applicable Central Taxes & Service tax.  How do I calculate  for issue of the Form 8F to accompany the materials dispatched?,Will there be any additional taxes to be paid in Kerala if I am not registered at Kerala. I will be invoicing on basis of 2% CST against form C calculated on 75% of the work order value? Will there ba any Works contract tax or TDS applicable on such a transaction?

As per rules in Karnataka, it is calculated as 75% of the Work Order value as CST / Local tax for the supply part and 70% of the work order value for the installation part on which service tax is applicable, with the customer paying 50% of the service tax and I pay the balance 50%. 

Will this method hold good for Kerala too?

Would really appreciate an early response.

Regards,

Satish

 

 



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