Hi Friends,
I have this query, if anybody could answer this or direct me to the person to get support. I am new user and this is my first post :-)
I am an Electrical Engineer. Trying to learn accounts on my own for my own company.
If an Electrical Contractor company A (Registered in Punjab) has a WORK CONTRACT with Real Estate Developer B (also Registered in Punjab) for Electrification of Mall.
How will we calculate TAX liability on Company A ?
Assuming following Numbers :
Tender Value (TV) = 1Cr
Supply of material in Tender = 70L
Installation of supplied material in tender = 30L
A is charging B no other tax, but Service Tax @ 4.12% on TV = 4.12L
Hence Total Amount (TA) payable to A by B = 1.0412 Cr
Now Company B is deducting :
(i) TDS @ 2% on TA = 208240/-
(ii) WCT @ 4% on TA = 416480/-
Hence Net paid amount to A = 97.87280 L
Now how will we calculate net Tax Liability (VAT and Service Tax) on company A ?
I am hoping for reply or some / any lead .
Thanks friends for your assistance :-)
Ganesh Kocher
Delhi
CAclubindia
