Civil work contract TVVAT

[Murugesan shanmugam]

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

AI Summary

Civil work contract VAT applicability: whether contractor must charge VAT or employer may deduct WCT and issue Form T. Query concerns whether, for a foundry civil works contract, the contractor should collect VAT in its bill or the hiring company may deduct withholding tax under a works contract mechanism and issue Form T, and how contractor levied service tax charged separately affects the VAT/withholding arrangement.