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Tax rates on work contract to government departments

25 December 2021

some newspapers( Danik bhaskar) saying tax rates on work contract to government departments would be 18% from 1 January 2022 its true?

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Rajendra Prasad (Employee Private) (1824 Points)
Replied 25 December 2021

Already Notifications issued by CBIC on the Works Contract Rates, that services provided to other than Central Government, State Government, Union Territory and Local Authorities will be charged @ 18% from 01/01/2022.

Please refer Notification No.15/2021-Central Tax Rate.

sabyasachi mukherjee (26047 Points)
Replied 25 December 2021

Tax rates on works contract to government departments is 18%
the nature of works contract is essential.

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