What dou mean by work contract?with example?
- 1 Answers
- 4454 Views
- Reliance, I also Faced
- E-Mail Answers
Answer / abhivirthi tax and industrial
A person gives white cloth in bulk; say 1000 meters (for 500 shirts) for stitching purpose. The tailor takes the sizes of shirts and stitches and delivers the same to the customer. This is called pure labour job.
The same person gives the same white cloth and sizes of shirts for stitching purpose. The customer orders the tailor to deliver the shirts in various colours after dying. The tailor after receiving the white cloth handed over the same to a skilled person for dyeing purpose. The person who received the white cloth converted the white cloth into colour cloth and then handed over to the tailor and receives certain amount.
If the tailor supplies the white cloth and raw materials for dyeing and the skilled person completes the dyeing work only with the materials supplied by the tailor, such kind of works is called pure labour job.
If the tailor supplies the white cloth only and the other raw materials are purchased by the skilled person at his own sources and completes the dyeing work and handed over the same to the tailor, transfer of raw materials like Dyes etc., are involved and such kind of work is called works contract. The skilled person charges on contract basis for the works done by him i.e. dyeing of white cloth into colour cloth and such completion of work is called works contract.
In simple, gray cloth rolls were divided into 5.5 meters, or 6.00 meters and dyed and converted into printed sarees or bedspreads or other materials by a person utilizing the dyes and chemicals purchased by him is called works contract. If the gray cloth and other materials are supplied by the same party, and if there is no transfer of property involved such kind of work is called pure labour job.
Reply From:
ABHIVIRTHI Tax and Industrial Consultancy
R.R.JAGADEESAN
VAT PRACTITIONER AND INDUSTRIAL CONSULTANT
H-63, Palaami Enclave, New Natham Road,
Madurai-625014.
Cell: 9994990599
| Is This Answer Correct ? | 4 Yes | 0 No |
Hi can any one tell me why the form no 16 a are used and When, where and how to submit it ?
A person buys and sells a number of vehicles in a tax year and makes a significant amount of profit in the process. Will such profit be taxable as capital gain?
what is perquisite? what do you mean by gratuity?
what is AMC charges for the year and how to calculate end of the year i.e dec or march
What is Form H .Why we required form H. How it can benefit us?
WHAT ARE SERVICE TAX RATES ON AUTOMOBILES PARTS
How to calculate pf, esi, vat, sales tax etc.,
61 Answers Aparna Enterprises, Cap Gemini, Genpact, Gurcharan International, HCL, Pushp Steel, Shriram, TCS,
if we have amc any vendor 30,000 pa. should we deduct TDS
What is the Penalty/Interest charges if non-payment before due date for IT,TDS,ADVANCE TAX,VAT,ST,EXCISE DUTY,PT,ST.PF,ESI?very urgent.
Hai iam a VAT Registered dealer am a manufacturer and am going to sell my products to unregistered dealers i can pay d 4% vat.. how can i make my bill format for this sgrc.gy@gmail.com. anybdy kno means pls mail me.
After assessment of books ITO demanded to pay Rs.5000 /- what will be the journal entry
what is capital good and asset as per excise.
Audit 
