Interstate transaction under Works Contract

sir

sir, I am a civil & electrical contractor. I have vat no in punjab state & also service tax no. I want to know that can i do work in haryana & Chandigarh in same vat no. the tax goes to punjab govt. or any method how to manage that work in same firm. Entry tax applicable on my firm.

thanking you

sanjeev

We are a registered dealer in HARYANA and we have executed some works contract (Material & Service) in Delhi. We are not registered in Delhi. We are raising invoice with 12.50% CST on 80%  amount and Service tax on 33% amount. Contractee of Delhi is deducting WCT TDS @ 2%. My query in this regard is that:

Should the contractee  deduct TDS ?

If yes, How shall we adjust it to our sales tax liability or claim refund ?

Is WCT haryana is chargable on CST sales made to Haryana. I m Delhi based. What is the procedure for claiming refund if i m not liable to WCT. Please refer some material from which i can get details on this.

Dear Sirs,

We are executing the contract of balance of project of a power plant in the state of Rajasthan.  For this most of the material is being procured from the rest of the country.

For operational & commercial reasons, the entire contract is devided into two parts viz.,

1. Supply of Mechanical, Electrical Material (Supply Contract)

2. Erection, Testing & Commissioning (ETC Contract).

The question is

a) Whether WCT is payable on the supply contract ???

b) In such case, Can the client (Owner of the Project), issue the C-form treating the material supplied under the CST act as  "Sale in Transit" .

c) Whether both CST & WCT are applicable on the "Supply Contract"

Dear all,

In view of recent change in the modality of filing the VAt and CSt return, i have some doubts

The changes have just published in the WB Commercial tax website. It will be effective from 1st April, 2010. The “Notification” stated some significant changes especially in return level (both VAT and CST) and from there to issuance "C" form will be done. Based on the information in CST Return, system will create a file for issue of "C" form which will be intimated to the dealer and the dealer needs to take the print out in their own stationery. The purpose of this change is to discontinue the physical delivery of "C" form. However, abandon precaution is required for uploading the "C" form as because once uploaded it has been specifically stated that change would be difficult.

Some issues which will primafacie arise have not addressed in the notification.
1. Especially the information of CST purchase, it tends to take the information on the basis of dealer's invoice without considering the GRN basis. Therefore in CST return disclosure of purchase for a return period is based on supplier’s invoice date covered during the quarter but not on actual receipt of goods which is confusing. How we can bridge this gap??

2. The "Tax" information as required to be stated in the return for issue of "C" form did not take into account the impact of freight charge. On freight charge if tax charged need to be deducted while issuing form.

3. In the current year budget date of revised return has been extended from 90 days to 180 days whereas issue of "C" form is to be made within two months from the end of the month in which return is filed, now once return filed if there is an inadvertent mistake how this will be addressed.

So all these questions will be very apparent and almost every dealer will be facing this problem, so we are also waiting if something new / amended views to come.