Works Contract

This query is : Resolved

L KANAGARAJ (Querist)
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15 December 2009 Dear Experts,
Kindly guide me.

M/s. A Ltd taken a Contract from Government, and gives that contract to M/s. B Ltd (i.e) Sub- Contract.
Value around Rs.40 lakh.
How M/s.B Ltd will raise Invoice? to M/s. A Ltd.
What are all the contents to be involved in the Invoice i.e. VAT/ Service Tax/ TDS.

What is the procedure under TNVAT & Service Tax.Because,this transaction pertains to Tamilnadu Govt.
Thanks

Vishnu Saboo

Vishnu Saboo (Expert)
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16 December 2009 you must clarify the query, whether there is material involved or it's purely services ot whatever it is.
where, it is material & service involved VAT in kind of WCT would be charged.
in case of service only the Ser tax would be charged in invoice.
however, TDS would never charged in invoice.