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
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.
CAclubindia
