Works contract tax

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CA supriyo saha

CA supriyo saha (Querist)
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19 May 2009 What is works contract tax ? what is its rate? how is it levied and on which amount levy is made?

Zeeshan

Zeeshan (Expert)
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19 May 2009 it is just like TDS. the payee has to deduct tax on certain specified payments eg civil construction. if you are paying any payment to contractor you have to deduct work contract tax on such payment @ 2% and it will be submitted to state govt. account.
(not applicable on indl and huf)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 May 2009 There is a section in the Income tax Act,1961 viz., 44AD dealing with a special provision for computing profits and gains of business of civil constructions. Other than that I haven't heard of 'works contract tax' in IT Act,1961. If you need to read section 44 AD, Pl log in to www.incometaxindia.gov.in

Zeeshan

Zeeshan (Expert)
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19 May 2009 the liable amount is bill amount by contractor before any tax ie vat or service tax.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 May 2009 I just checked your profile and understood that you are in BSN. So, Mr.Zeeshan's reply will suit to your case.

Zeeshan

Zeeshan (Expert)
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19 May 2009 what does BSN means mr. BC warrier.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 May 2009 Bharath Sanchar Nigam Limited.