Seeking professional answer to the query raised:
My client, a contractor (sole proprietor) in Karnataka, has entered into a contract with the owner (individual) to develop a land area for sale as plots.
1. RABs have beeen raised in the past year, labour has been considered at 40% of the bill value, Service tax has been considerd at 12.36% on the same and liability determined under service tax. Ex: RAB is 100000, VAT @ 14.5 on materials (considered at 60%) and labour charge considered @ 40% - 40,000. Service tax of 12.36% has been determined on the same. Would it be 40% or 30% of the RAB based on the slab given in the act for indivisible contracts. This work has in turn been sub-contracted to another individual.
What about WCT provisions and applicability of the same?
Thank you, all
CAclubindia
