Works contract

This query is : Resolved

Adv. B Jaikumar (Querist)
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15 February 2012 Dear Expert
I have alloted a government contract of Fire Fighting Buildeing for Rs. 60.00 Lakh in our agreement no specific mention about taxes to whome paid. i have no chance to submit my works bill and receip of payment. there is procedure government engineer takes a mesurement and he self prepared RA bill and the Department issue cheque on my Name after deduction TDS & Security Deposit.
Now My Query is who can i recover from him WCT @ whaever rates applicable.

please guide me who other dealer does in similer cases

Rajnish Singh

Rajnish Singh (Expert)
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15 February 2012 DEAR SIR,

THIS IS WORK CONTRACT WHICH IS UNDIVISIBLE.
IN THAT CASE YOU SHOULD READ THE TERM OF PO REGARDING TAXES . IS IT EXTRA OR INCLUSIVE IN RS. 60 LAKH . IF IT IS INCLUSIVE THAN YOU HAVE TO PAY VAT @12.5% 80% AND REST ARE SUBJECT TO SERVICE TAX. WHETHER SERVICE TAX SHOULD BE CHARGED ACCORDING TO SERVICE TAX ACT AS NORMALLY ON 33%@10.3% OR IF YOU OPT ANY OTHER OPTION TAHN YOU SHOULD PAID IN THAT WAY.

IF YOU WORK IN IN OTHER CATEGORY ( OTHER CATEGORY REFER TO OTHER JOB WHICH IS MENTIONED IN DVAT , IF IT IS RELATING TO OTHER THAN RATE OF 80% WILL BE CHANGED.

NOW IT IS CLEAR THAT YOU SHOULD CALCULATE AND PAY THE TAX WITH INTEREST IF YOU ARE GETTINGH LATE.