WCT Service treatment in Maharashtra

Queries 1844 views 2 replies

Sachin Jain CA, CS, CWA

Job

240 Points Joined March 2007

if i (a pvt. co.in Maharashtra) issued a work order to a contractor for a project involving both labour+materialcosts & no identification of material & service portion is available . Then,

1. As far as I know, i have to 5% Vat (if building contract otherwise 8%) on basic amount, 4.12% S.Tax on same basic amount. Is the contractor is charging right tax amount from me?

2. If Yes, then what credit of VAT paid & Service Tax paid can be availed by me?

3. While payment what amount I have to deduct as TDS / Work Contract Tax? Tell me legal supportings also for your opinion.

can u suggest me what tax i have to deduct T.D.S or W.C.T what & what %

Replies (2)

Rakesh

Commercial Manager

21 Points Joined April 2010

If a sub-contractor is executing the work for which he is provided the material by the contractor. In such case no material has been sold by the sub-contractor , only execution of work he does with his labour. In this case should the contractor deduct the wct on sub-contractors execution (labour) work?