Hai,
We have(Pvt Ltd) construct new factory(Foundry) , We have issued civil work contract order to contractor(Pvt Ltd). Please clarify the applicable TNVAT tax to Civil work contract. The contractor to be collect any VAT in his bill (2% or 4%) or we can deduct WCT 2% in his bill and pay to our sales tax authority and issue Form T to our contractor.
Service tax 14% (40%) they collect in his bill.
S.Murugesh
Coimbatore
Tamilnadu
Clarification Sought on TNVAT Application for Civil Work Contract: 2% or 4% VAT, 2% WCT Deduction Possible? A private limited company is constructing a new factory and has contracted another private limited company for civil work. They seek clarification on the applicable Tamil Nadu Value Added Tax (TNVAT) for the civil work contract. The inquiry involves whether the contractor should collect VAT at 2% or 4% on their bill, or if the company can deduct a 2% Works Contract Tax (WCT) and pay it to the sales tax authority, issuing Form T to the contractor. Additionally, the contractor collects a 14% service tax on 40% of the bill. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
