Taxability of this transaction.
This query is : Resolved
27 November 2013
1) Situation >>
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?
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?
Manish Bhandari
(Expert)
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.
27 November 2013
AND VAT bhi attracted na, with respect to the relevent state VAT act rate?
Manish Bhandari
(Expert)
28 November 2013
You are labour contractor Then why VAT also TDS is not to be collected but department will deduct and pay to government.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Nursery business
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
