Tax on Payment to contractors
This query is : Resolved
09 June 2010
An educational trust running educational activities, constructing buildings for educational purpose. The contract of construction is given to labour contractor whose payment is more than 15 lacs for the year. is any sales tax deduction required? At what rate? what will be organisation's liability for sales tax?
09 June 2010
If the construction materials are purchased by the trust in their own name and the said materials are made available at the work site by the trust and if the contract is only for labour ,provisions of VAT will not attract since there is no transfer of property from contractor to trust. If there is a written contract, words like materials should be supplied free of cost etc should be avoided.This is general law as far as VAT is concerned. However the respective state VAT law has also to be referred.
09 June 2010
Work Contract Tax will be applicable in this case, which is also regulated by Sale Tax Dept.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund of AY 22-23
- Should I include march foreign salary received in April in my income for FY 2023-24?
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Applicability of Ind As to associate of associate
- 115TD on cancellation of 12A 80G Registration
- Declaration of Profit of foreign subsidiary in Indian holding Company
- Return material
- TDS is applicable on payment of Fix Meal
- Form ITC 04
- TDR receipts for agreement holder
- Point (III) 9 of GSTR-9C
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
