A contractor supplies workers to a govt.dept (water authority) for its various works on daily wages basis. Here, Contractor makes payment to his daily workers, and the authority makes lumpsum payment to the contractor. So my question is, what are the taxes that contractor is ALLOWABLE to collect from the water authority while collecting his amount of consideration, AND as per which provisions of which acts?
27 November 2013
Only the taxes as per service tax will attract to be collected from the department. But provided there is no exemption for the same as it is working for public utility.
CAclubindia
