Jitendra Kumar Sahu (Account Manager) (106 Points)
05 December 2012Dear Freinds.
We have issued two separate order to a Vendor/contractor one is PURE PURCHASE ORDER and another is PURE WORK ORDER.
The vendor/contractor submitted the two seperate bills one is for supply in which charge applicable VAT and another bills pertaining to labour charges including service tax.
Kindly advice, We are liable to deduct WCT on bills submitted by vendor/contractor for supply of material as well as labour.
Jitendra Kumar Sahu
(Account Manager)
(106 Points)
Replied 06 December 2012
kindly advice its urgent
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 06 December 2012
there is no need to deduct WCT as there are two separate bills i.e., divisible between material and labour. So the Material bill is pure sales bill and labour bill is service bill which required to deduct TDS under Income tax Act, if limit is crossed.
NO WCT
Jitendra Kumar Sahu
(Account Manager)
(106 Points)
Replied 15 December 2012
If we have issued a work order to a contractor and the contractor submitted the two seperate bills one is for supply in which charge applicable VAT and another bills pertaining to labour charges including service tax.
Kindly advice, We are liable to deduct WCT on bills submitted by contractor for supply of material as well as labour.
Kindly advice with provision.
CAclubindia
