Wct & service tax

This query is : Resolved

Aaftab Ahmad (Querist)
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29 October 2011 DEAR SIR/MADAM
I AM WORKING IN A CONSTRUCTION COMPANY, IT IS
REGISTERED IN GURGAON(HARYANA).
WE HAVE GOT A CONSTRUCTION WORK FROM COMPANY 'A' FOR ITS FACTORY AT DHRUHERA(HARYANA) THIS COMPANY IS ALSO REGISTERED IN GURGAON. WE HAVE GIVEN THIS WORK TO 'B' CONTRACTOR BUT WE ARE MAIN CONTRACTOR. NOW WHEN WE RECEIVED AMOUNT AGAINST WORK DONE AT SITE TEHN WE PAY CONTRACTOR'S AMOUNT IN THIS CASE WE BOTH RECEIVED PAYMENT FOR SAME WORK, SO I WANT TO KNOW THAT WE BOTH SHOULD PAY WCT AND SERVICE TAX OR WE SHOULD PAY TAXES, IF WE PAY TAXES THEN WHAT KIND OF CERTIFICATE WE HAVE TO ISSUE THE SUB-CONTRACTOR.

THANKING YOU

Hitender Gaur

Hitender Gaur (Expert)
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05 November 2011 If you have get registration in GGN as WCT dealer then you can give a declaration on your letter head declaring that the work executed by sub-contractor is under the work awarded to you and you are paying the WCT on your TIN to the concern authority (Assessing Authority Gurgaon)at appropriate rate. If You are main contractor then no need to pay WCT on bill of subcontractor.

You can deduct/pay the Service Tax on sub-contractors work and take the benefit of said amount as CENVAT in your returns.