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Taxes pertianing to ra bills of construction contractors

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Arvind Kumar Singhal

Asst. Manager

22 Points Posted on 06 February 2012

I am a Construction Manager!

Can you please tell me the prevailing rates for different construction activities for construction works i.e.

Taxes applicable for RA Bills

Taxes applicable for deduction from petty contractors

Taxes to be charged from different bodies from contractors

CST, Exise, WCT, TDS, IT, LWT etc.

Thanks,

Arvind

Replies (1)

V P Narasimhan

Accounts Manager

747 Points Posted on 22 February 2012

Dear

If its a commercial construction 10.3% service tax applicable on 33% of the Work Value (67% abatement) & 2% TDS applicable. If its a residential construction a minim no. of flats should be there (check service tax web site for a clear picture) otherwise no service tax applicable. VAT is applicable on purchase of materials as per the seller's bill (5%,14.5%,1% etc). Payment made to contracotrs 1% to be deducted on payment exceed the limit for individuals & 2% in case of Company. Tax applicable for Professional fees viz., Archteict ,Auditor also applicable.