Can any one clearly difine what is Works Contract with
suitable exemple
- 2 Answers
- 7501 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
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
| Is This Answer Correct ? | 11 Yes | 2 No |
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
| Is This Answer Correct ? | 1 Yes | 3 No |
which items should be covered the Entry Tax by HP Govt instead of Purchased
what is assessment year. what is assesee. what is tax slab
At what point excise duty is accrued
What is MAT ?
If possible Vat Charged on Service Tax ?
What is the rate of WCT in Haryana.
hi which form issue again ogs purches & sales ? which is the tax rat we issue c form?it's cst3% is avelabe to issue the c-form?
We purchase Electricals Cabel for Panel & Fitting for our company, we have issued Form "C" to above material purchase From OGS
If we issue a new sale invoice after issuing a Credit Note to the coustomer, for the previously issued sale invoice on which Central Sales Tax @2% was Paid previously,whether we will be liable to pay for charging the sales tax on new invoice and pay to the sales tax department.
cgl2012 tier1 mein 62.50 marks they or mera naam TA wali list mein tha but mainey Auditor ko 1st prefernce choose kia tha tier2 mein maths mein 142 or english mein 104.50 marks aaye but fir bhi mera naam only list4 TA main tha or mujhey DEST typing test dena parha i want to know that agar main TA k liye typing test pass ahi kar pata to kya mujhey koi bhi post milegi. pls anybody knows tell me.
Can anybody tell me that what is the difference among ER- 1,ER-2,ER-5 and also write please applicablity circuler/rule for its limitation or please advice me the best book related rules which is helpful for excise accounting. "THANKS IN ADVANCE"
how can we calculate tds? how the return prepare & file?
1 Answers Odisha Gramya Bank OGB,
Audit 
