WCT(TDS) IN HARYANA

[S.C. WADHWA]

Dear Experts,

We have expanding our unit in Haryana and deputed one Designers and Architecture from Delhi for civil works-PCC floring,
loose and fixed furniture, electricity works, plumbing works etc. He raised his bill and charges service tax % 8.652% and
DVAT @ 80% of 12.5% where as Unit has also to pay 5% TDS(WCT) in Haryana on bill amt on behalf of party.
Now my query is whether Designer can charge 80% of DVAT while working in Haryana and on what amount whether before
/after service tax, the TDS @ 5% to be deposited by us in Haryana. Please give your expert opinion. Regards, WADHWA

AI Summary

Withholding tax on contractor payments: whether 5% TDS applies and on which invoice value the deduction is computed. The payor queries whether it must deduct 5% WCT/TDS from a Delhi designer's invoice for civil and related services in Haryana and on what taxable base that deduction must be made, given the invoice shows service tax and a VAT charge presented as DVAT at 80% of the nominal rate; the issues are whether the designer may apply DVAT at that measure while working in Haryana and whether TDS is computed before or after inclusion of service tax.