Hi Sirs,
I need Clarification on the Following just a doubt...,
1 ) i am working in an MNC in India.
2) I am working in an Site based Construction Project
3) As you aware , my Cost to Company (CTC) is observed in the Costing of the Project with is Indirect cost considered in the Cost of the Project . Contract amount is Cost plus Profit of my Company whom i am woking right now.
4) Since my Cost to Company is covered in the Contract Basic amount . Every Month our Company is raising the invoicing to the client with Tax of 18 % ( Invoice amount = Basic Cost ((Cost +Profit)) + Tax(18 %)) & this invoice amount with Tax paid by our client.
5) My doubt is how my company is returning the tax to me collected on my behalf . Since my cost- that is whatever my cost to company company is considered in the Cost and i am earning my salary from that cost and this inurn will be paid by my client through the invoice amount.
6) As you aware goods tax are clear - We are public is end consumer we are paying to supermarket stores are whoever with Cost ( Cost + Profit of Supermarket + Tax).
7) Same way our client is paying also Tax to our company since he is end consumer and my cost is also covered in the Invoice amount every month .
8) i am clear as per IT law we have to pay IT as per the slab rate for our income . I want to know the tax collected on my cost to company by my company from Client . How they are reimbursing me (since TDS is being deducted from every month salary from my due to my company as per Govt Guideline).
Please clarify.
CAclubindia
