22 November 2013
Our Company has awarded contracts for construction of Godowns in AP & UP.Both contracts are exclusive of taxes which are to be borne by the contractee.
Now for AP Work the Contractor is raising bills as follows:
Work Done Rs.1,00,000/- Add: WCT @ 5% Rs. 5,000/- Add: Labour Cess @1% Rs. 1,000/- Total Rs. 1,06,000/-
1. Is there any exemption from VAT/WCT as the company is constructing agricultural warehouse(Priority Sector) which will b leased to FCI for storage of foodgrains against lease rentals? 2. What is the rate of WCT if the contractor is under Regular scheme and under Composite Scheme.
3. If the above RA bill is correct then we shud make the following deductions from the amount Payable: