Taxability of this transaction.

This query is : Resolved

S Y A M (Querist)
Follow

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?

Manish Bhandari

Manish Bhandari (Expert)
Follow

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.

S Y A M

S Y A M (Querist)
Follow

27 November 2013 TDS applicable hoga na @ 1 % ??

S Y A M

S Y A M (Querist)
Follow

27 November 2013 AND VAT bhi attracted na, with respect to the relevent state VAT act rate?

Manish Bhandari

Manish Bhandari (Expert)
Follow

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.

S Y A M

S Y A M (Querist)
Follow

28 November 2013 ok sir thank you very much