Works Contract - TDS and other issue

[Asif Ali]

X Company has provided Materials (Mat A) to a Job worker. Job worker will add some Materials (Mat B) along with (Mat A) supplied by X and do the processing as per specification of X company ?

Query : Will TDS u.s 194C is applicable ? (since I know the same is applicable if Job worker carried out the work with Material supplied by Principal but in this case 2 things happening, material is supplied by Principal + Material is also supplied by Job worker.

Query 2: whether Excise duty is chargeable and how ?

Query 3 : What is the rate of WCT is chargeable if final output is Acid slurry ? Now Can the principal take the credit of WCT in West Bengal ?

 

AI Summary

TDS and Excise Duty in Works Contracts: Section 194C Explained for Material-Supplying Job Workers. WCT Credit in West Bengal? A user inquired about tax implications related to a works contract involving X Company and a job worker. The job worker processes materials supplied by both X Company and themselves. The user asked if Tax Deducted at Source (TDS) under section 194C applies, considering both parties supply materials. Additionally, they queried about the applicability and calculation of excise duty, the rate of Works Contract Tax (WCT) for acid slurry, and whether the principal can claim WCT credit in West Bengal.