Taxes and duties on work contract

EXICSE (Legacy) 408 views 2 replies

Imran Ahmed Siddiqui

MBA

33 Points Posted on 28 June 2014

Pls. help on applicable Taxes and duties for following two scenarios :

Existing Material laying at site is dismantled, brought to our works, repaired and refurbished with new materials as well as machining/ processing, and sent back to the site. We will quote one value for complete work for this item.. ..Please confirm duties/ Taxes involved in such transaction….

Existing Power House site is repaired and refurbished, where welding electrodes, steel plates, anticorrosion paint and consumables are used for on site repair work…. Please confirm duties/ Taxes involved in such transaction….

Replies (2)

maharaj

accountant

165 Points Posted on 28 June 2014

You question not clear to me.

For Point No 1:- IN contract if any aditional expenses required to complete the work which has not been included in works contract value. Then Expenses will be added and after that S.T. will be calculate.

Point No.2:- Should be as per contract basis. If RCM is applicable then it will be 50% for service receiver and rest 50% for service provider.

Imran Ahmed Siddiqui

MBA

33 Points Posted on 28 June 2014

Originally posted by : maharaj
	You question not clear to me. For Point No 1:- IN contract if any aditional expenses required to complete the work which has not been included in works contract value. Then Expenses will be added and after that S.T. will be calculate. Point No.2:- Should be as per contract basis. If RCM is applicable then it will be 50% for service receiver and rest 50% for service provider.

In connection

For Point no. 1- We have offered Single value to Customer for entire activity inclusive of Material Cost and Machining part...Now while rasing Invoice we are bit confused mentioning that either we are supposed to charge ED on compleate value or there will be applicabilty of VAT/ ST as well.

For Point No. 2- Agreed Applicabilty of ST with ratio of 50:50.