Work contract tax

This query is : Resolved

phani ram (Querist)
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02 July 2013 sir, can u please tell me how should we calculate tds and service tax amounts when work contract tax is involved.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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03 July 2013 TDS under ST law is nade @4.5%(composition rate).If you have opted for coposiition scheme the TDS amounts get adjusted against the tax payable.If you are not under composition you have charge ST @ 12.36% on 40% of the total receipts in the bills. This amount is to be adjusted against TDS,If any balance left it is to be paid or any excess of TDS is to claimed as refund.....mjk

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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05 August 2013 If your contract is inlusive of material and you submit a consolidate bill then this problem arised. You have to charge VAt and ST both but if you submit your bills for material seprately and labour separately then on material you have to charge VAY and on labour you have to charge ST. TDS as per Income Taax Act shall be charged on the etire value of contract.

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