Works contract tax
This query is : Resolved
MOHAMMED ASIF
(Querist)
28 December 2013
sir,
we have started a pharmaceutical manufacture company , where we gave a contract for construction of a plant and paid some amount
1. my question is whether we should deduct works contract tax on the paid amount ?
2. what are the rates apllicable for it ?
3. from where i can get this tax details ?
we have started a pharmaceutical manufacture company , where we gave a contract for construction of a plant and paid some amount
1. my question is whether we should deduct works contract tax on the paid amount ?
2. what are the rates apllicable for it ?
3. from where i can get this tax details ?
CA. RAVIKUMAR
(Expert)
30 December 2013
I need more details about your query:
1) whether you have given under works contract (Material + labour)?
If you have given it on works contract basis then reverse charge is applicable where in you have to pay Service at 50% of the tax liability and service provider has to pay 50% of the tax liability.
Tax rate depends on the type of work for which you can refer my article available in the below link: refer Rule 2A(i) Rule 2A(ii)and section 67
https://www.caclubindia.com/articles/service-tax-on-construction-industry-overview-18781.asp#.UsBsKPQW0XM
1) whether you have given under works contract (Material + labour)?
If you have given it on works contract basis then reverse charge is applicable where in you have to pay Service at 50% of the tax liability and service provider has to pay 50% of the tax liability.
Tax rate depends on the type of work for which you can refer my article available in the below link: refer Rule 2A(i) Rule 2A(ii)and section 67
https://www.caclubindia.com/articles/service-tax-on-construction-industry-overview-18781.asp#.UsBsKPQW0XM
MOHAMMED ASIF
(Querist)
30 December 2013
sir
our contract is like , we just pay money and contractor will bring all the material required and do construction .
our contract is like , we just pay money and contractor will bring all the material required and do construction .
CA. RAVIKUMAR
(Expert)
30 December 2013
Hi,
Then it is considered as works contract please refer article
https://www.caclubindia.com/articles/service-tax-on-construction-industry-overview-18781.asp#.UsESOfQW0XN
Then it is considered as works contract please refer article
https://www.caclubindia.com/articles/service-tax-on-construction-industry-overview-18781.asp#.UsESOfQW0XN
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