Work contract bill

This query is : Resolved

T Santosh (Querist)
Follow

15 November 2014 Good afternoon all, sir, i am working in construction company. I got a work contract bill, where they charged 85% Vat and 15% Service tax. Can i take both input credit? How can i deduct tds?

Neljo Davis ACA

Neljo Davis ACA (Expert)
Follow

18 November 2014 Please note the following in the above situation.
Assuming that the construction company is main contractor and the works contract bill is from a subcontractor.
1. The company can deduct the sub contract amount from the main contract while computing VAT liability (Kerala VAT).
2. Provisions of TDS u/s.10 of the KVAT Act will be applicable.
3. Input on Service portion of execution of Works contact can be claimed only if the construction company is in the same line of business.i.e. Raising Works Contract Bill.
4. TDS u/s 194C of the Income Tax Act @1% or 2% depending upon the status of the sub contractor. i.e Individual/HUF or Others (on Total bill amount less Service Tax)
5. Reverse charge mechanism under service tax will also apply if the sub contactor is other than company.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Nithish Kothari

ANUPAMA L KANT

Fahima Malik

velichety.l.narasimharao

T.N.Reddy

Subscribe Now

Work contract bill

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA