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work contract tax, VAT + CST |
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work contract tax |
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In a work contract labour and materials seperately shown.VAT for material and service tax for labour claimed.Whether work contract tax for labour shall be deducted on payment.
Posts / Replies Showing Replies 1 to 6 of 6 Records Page: 1
Dear Veera, Showing the labour component and material component separately won't absolve you from the liability under the provisions of WCT. If you are not maintaining the separate records then either you can avail the abatement or you can go for composition scheme under the works contract. The contractee is also under statutory obligation to deduct the TDS on WCT and to issue a certificate in this regard to the contractor on the Gross Value of the Contract. At the time of your assessment you would have to produce such certificate to the assessing authority. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants)
Works contract Tax which is also called as VAT-TDS is required to be deducted by the receiver of service from the payment to be made to the provider of works contract service. The deductor is required to deposit the amount so collected to the exchequer. the deductor shall issue a certificate to the service provider who inturn can claim the benefit by showing as tax already paid in the Vat return. The provision of VAT-TDS or WCT varies from state to state. In some state it is applicable and in some not. VAT is a state subject.
Dear Sir I want to escalate this problem. can we deduct TDS/WCT on inter state transaction.
As I said VAT is a state subject it differs from state to state and therfore if you can write down which state you are referring to we can comment with reply.
Dear Ganeshan Sir My company is situated in Daman & Diu & most of contractor belong to gujrat & maharasthra.
Dear Deepak, There is no provision under CST Act, 1956 regarding deduction of TDS on interstate works contract. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) Page: 1 Old Query - New Comments are closed. |
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