Hi All,
Our company is in the field of Cable Industry. We are setting a new plant at Pune. For that purpose we have given a works contract to one of the renowed CONTRACTOR.
Now he has submitted his first runnin bill to us as follows :
Construction Work Till Date [ R.A.Bill 1 ] Rs. 1,00,000
Add: Service Tax on 33.33% of above
@ 12.36% Rs. 4,120
Add : WCT VAT @ 5% on Rs. 1.00 Lacs Rs. 5,000
Grand Total Rs. 1,09,120
As per my knowledge before making paymeny , I have to consider 02 deduction
First one : Normal IT TDS @ 2.266% on full Invoice amount of Rs. 1,09,120=00
But regarding 02 deduction of WCT -TDS , what will be the % and on which amount it should apply ?
Please clarify
Amit