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.
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.
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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