Work contract applicability and levy of tax....

This query is : Resolved

akash (Querist)
Follow

15 February 2017 hi
we entered into work contract with a stone crusher for supply of manpower and equipment/parts for production. Invoice is issued to company on units of production and not on goods and manpower supply basis. eg: abc ltd supply manpower and equipment/parts for production of goods and issue single invoice say 10000 units produced@25=250000 for November.
please explain the tax treatment ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 February 2017 TDS applicable on this payment at 2% u/s 194c. No service tax applicable if it is considered as manufacturing activity and excise duty is paid. With regard to income tax 44AD applicable up to 2 crore turnover.

akash

akash (Querist)
Follow

15 February 2017 please tell me the tax treatment for abc ltd ? whethet vat and service tax to be levy and paid separately or wct vat is to be levied ?

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 February 2017 No VAT or wct vat applicable as no transfer of property involved. Service tax is applicable if no excise duty is payable.