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WORK CONTRACT TAX

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This query is : Resolved

lohithakshan u k (Querist)
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22 August 2007 WE HAVE ENGAGED A CONTRACTOR FOR CONSTRUCTIION OF BUILDING. HE HAS DRAWN SOME ADVANCE FOR THIS WORK. IN ADDITION HE HAS SUBMITTED PART BILL ALONG WITH M BOOK AND GOT PAYMENT .I WOULD LIKE TO KNOW WHETHER WE ARE LIABLE TO COLLECT TAX (VAT) ON THE PAYMENTS MADE TO THEM JUST LIKE TDS OF INCOME TAX. I AM OF THE OPINION THAT CONTRACTOR IS TO CHARGE VAT /WC TAX ON FINAL BILL AND TO REMIT THE TAX. PL CLARIFY THE POSITION
AND THE FORMALITIES TO BE FOLLOWED WITH FORM DEETAILS.

Raj

Raj (Expert)
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22 August 2007 At first which state you belong ? as per one advance ruling WCT should deduct on each bill submitted for contract & remitt to government to same in due date like TDS.

POOJA AGGARWAL

POOJA AGGARWAL (Expert)
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23 August 2007 it depends on the state in which you belongs
Like in Haryana WCT is deducted & deposited upto the 15th of the next month in which payment regarding WCT is made.
It does not matter whether the payment is advance or against Bill.

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