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Work Contract Tax

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..... Work Contract Tax
Query (Issue) Started By: - p.k.s nair Dated:- 5-9-2012 Last Reply Date:- 6-9-2012 Other Topics
Got 3 Replies
Indian Laws
Sir, I have entered into an agreement with a Civil Contractor ( a Privite Limited Company) to Construct a house in our village. The estimated value is Rs. 39,33,692.22. The contractor levies Rs. 1,19,191.00 (3.03%) as Tax on the estimated value .....

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..... of the house. Sales Tax are levied while purchasing by the dealers and included in the cost of goods/materials viz. a viz.- Cement, Iron and Steel, wooden compontents like doors and windows, Tiles, glasses, electrical and plumbing accessories for use in the construction of house. So again Tax is payable by me or not and if so how much?. And whether the contract tax in payable on labour charges for .....

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..... construction of house and Transportation charges which includes loading and unloading charges levied by the loaders. Please help me and clarify. Regards, P.K.Surendranathan Nair. 5-9-2012. Reply By Pradeep Khatri: The Reply: If it is a single unit then no service tax will be applicable at all. Reply By p.k.s nair: The Reply: i meant work contract tax . Not serviice tax . Reply By Pradeep .....

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..... Khatri: The Reply: Works contract under VAT is not payable on the labour charges, construction charges included loading and unloading charges. It is paid on the goods involved in the execution of works contract. If the contractor issues an invoice or bill upon you then surely he will charge works contract tax as applicable and will deposit it with the concerned department. At the time of assessm .....

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..... ent he may take the benefit of tax paid on the goods/material. Please talk with him in this regard.
Discussion Forum - Knowledge Sharing .....

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