I would like to get clarifications in the following transactions whether

1.the transaction will attract Works contract Tax
2.if so wat is the rate of tax
3.if vendor is deducting VAT then what is the effect of WCT
4.if the work is done against Purchase order as per specification required by the contractee whether the vendor is falling under 194C as a contractor for deducting TDS.

The case is

We have raised an order for printing of Poster papers to a Private ltd company.
On the basis of the puchase order and as per the specification mentioned in that order, we have received the posters.

Now the vendor has raised bill for the work he completed and also charged VAT @ 4% on the total work value.

We have paid the vendor without deducting TDS.

To my knowledge,

if the work is taken as WCT,say WCT attracts, then in our case the vendor has charged VAT hence no need to collect WCT from his payment.

In over view, it is a sale in hands of the vendor and purchase to the receiver and hence no question of TDS raise.

In another view,it is like job work and the vendor falls under the definition of "Contractor" as per IT Act and hence TDS to be deducted.

Note:All the materials were used by the Vendor on his own

What is your view in this regard?

Pls clarify me as soon as possible.
Cite.Co is a repository of information created by your industry peers and experienced seniors made possible with help from our prime sponsors like:

TALENTEDGE Who provide a platform for "interactive anywhere learning". Courses from top reputed institutes like IIM, XLRI, MICA. View Courses

FACTOHR - Provides Customised Payroll, GPS Enabled Attendance, Travel, Performance Management, HRMS that can help streamline your organisation. Explore Features

Register Here and help by adding your inputs. Contributions From Other Members Follow Below...
Dear Sir
I am wrkng professional in oil field & get 16a for the income tax at the end of the year. My employer deducts 10 percentincome tax. Pls advise me the ways so that i can reduce my income tax by showing conveyance expenses, petrol expenses etc as per indian income tax rules. I fall in the hihest bracket. regards
hs bhatia, mumbai
Add Reply Start A New Discussion

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™