Answer / gravi

THIS ANSWER WAS TAKEN FROM TAX 4 INDIA.COM

ANSWER:
A works contract is an agreement, which is entered into for
the following purposes:

For carrying out construction, fitting out, improvement or
repair of any building, road, bridge or other immovable or
movable property.
For cash, or for deferred payment, or for other valuable
consideration.
In other words, whenever there is a contract, by which one
person promises to make something which, when made, will
not be his absolute property, and by which, the other
person promises to pay for the work done, will be
considered to be a contract for work. This will be the case
even if the payment maybe called a price for the thing and
if the materials, of which the thing is made, may be
supplied by the maker.
Though the Central Sales Tax Act still has no definition
for a contract or works contract, the definition of sale
includes a transfer of property in goods, involved in the
execution of a works contract.

In order to prevent evasion of tax by the transfer of
property through a works contract, the Indian Constitution
was amended to make such transactions taxable. Works
contracts are taxable under most State sales tax laws (but
not under the Central Sales Tax Act). However, it is only
taxable to the extent of the value of the goods that have
been transferred. This means that the full value of the
Works Contract is not taken into account while calculating
tax that is payable under the state sales tax laws

Answer / vijaykant

Example A-Company requires a building in their company,
then A will give Works Contract to Contractor-B

Contractor-B then build Building in A-company
by providing material, labour & Expenses, this is works
Contract.In his Invoice Contractor-B will charge Works
Contract Value, 5% VAT & 4.12% or 10.36% Service Tax on
Contract Value(Note:- 4.12% Service tax is Under
composition scheme and 10.36% Service will be on 36% of
contract value)

Mainly works are done at the purchasers site

which is the Due date of Challan & return filing dates of VAT,PF,PT,ESI,TDS,Service TAx and IT in Uttarakhand.

4 Answers   Sara Eminent,

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kindly advise me any set off in excise duty in maharashtra

0 Answers   Kanakia Group, Marvel Abrasive Tools,

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If the purchaser did not submit form "c" while purchase from outside state, and he charged for 12.5 % vat, then can he claim input credit for Rs. 12.5 % ?

4 Answers  

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how many form used in sales tax return from begining to ending?

0 Answers   Otis,

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what are the items on which excise duty is applicable??? does it have something to do with the turnover of the manufacturing..??

2 Answers  

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Excisable material sold without charging excise duty, Now after 3 months, I am issuing Suplimantary bill to party for Excise payment, now please tell me the interest need to pay for this and also is there need to pay interest if i have sufficiant amount of cenvate credit balance in these 3 months.

2 Answers   Reliance,

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What is TDS and what are the various rates of TDS?

2 Answers   IBM,

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we are in process of setting up a manufacturing unit in karnataka. can we procure cement from andhrapradesh by issuing c form

2 Answers  

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What is the benfit of c form

5 Answers   Infotech,

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What will be the rate of TDS on contractor if the amount paid in a year crosses Rs.75000/-

6 Answers  

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how to filing rt-1

0 Answers  

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Which is the section or rule for non submitting c forms panelty and interest

0 Answers  

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