14 August 2011
A business firm doing sales business in a state. now it wants to start contract work in construction field in other states. So which is more preferable to charge? Work contract tax or service tax? And how should It be Taxed and at what rates? For WCT any registration is required?
1. Composition Scheme - You have to pay tax @ 4% + 3% Cess on the gross amount.
2. You may claim abetment on the value of materials sold/used in the course of execution of Works Contract and pay full tax @ 10% + 3% Cess on the balance.
You may opt either of the alternative for each contract.
In VAT laws also there are composition Schemes. For rates and computation, you need to check respective state's VAT laws.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 August 2011
For this composition scheme any registration or anything is required?
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 August 2011
Sir, I have started a firm which is in construction field. And i have taken a contract and also completed it. But what should be the tax amount to be charged? my firm is based in Andhra Pradesh and i have executed the work in West Bengal. I have my CST and VAT number oF AP as my firm is based there. Now when i am submitting the AP bill to the firm in West Bengal what tax should i charge? WCT or Service Tax? And what is the amount of tax to be charged along with Cess? the gross bill amount comes to 9000. now how does the tax part come here and what should be charged?
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 August 2011
Sir, I have started a firm which is in construction field. And i have taken a contract and also completed it. But what should be the tax amount to be charged? my firm is based in Andhra Pradesh and i have executed the work in West Bengal. I have my CST and VAT number oF AP as my firm is based there. Now when i am submitting the AP bill to the firm in West Bengal what tax should i charge? WCT or Service Tax? And what is the amount of tax to be charged along with Cess? the gross bill amount comes to 9000. now how does the tax part come here and what should be charged?
15 August 2011
For doing contract in West Bengal the VAT rules WB shall be applicable to you and not of AP. So get the registration under WB VAT. You have to charge WB VAT Service Tax Registration may be kept the same. In composite contract the expert has rightly said both VAT & SC shall be charges