Guideline on WCT - IRCON's INTRANET SYSTEM!!!

More documents

Recommendations

Info

composition scheme is available in the state and also work out the WCT liability under composition route vis-a-vi normal route to find out most profitable option, specially in case of contracts with prices inclusive of WCT. 7. If composition option is intended to be exercised, an application should be moved by the project within the permissible time limit of the sales tax/WCT law of the State. The services of the local consultant/tax practitioner/advocate may be utilised for the purpose. 8. If WCT is reimbursable by the client over and above the contract price (price exclusive of WCT) and composition option is intended to be exercised by the project, it should obtain prior confirmation from the client to avoid any future dispute on the subject. 9. Project should check with the CTC whether the tax authorities of the State entertain requests for exemption from TDS/Deduction of tax at a rate lower than the normal rate of TDS, prescribed by the sales tax/WCT laws of the State. 10. If permitted a certificate should be obtained by the project for exemption from TDS/Deduction of tax at lower rate. Project should ensure submission of application in prescribed form within the prescribed time limit. The services of the local consultant/tax practitioner/advocate may be utilised for the purpose. EXECUTION STAGE 1. Project should take initiative either in person or through the local consultant/tax practitioner/advocate to collect Registration Certificate from Sales Tax/WCT Authorities. 2. Project should take initiative either in person or through the local consultant/tax practitioner/advocate to collect permission for composition tax from Sales Tax/WCT Authorities. 3. Project should take initiative either in person or through the local consultant/tax practitioner/advocate to collect certificate for exemption from TDS/Deduction of tax at source at lower rate from Sales Tax/WCT Authorities. 4. The project should, either in person or through the local consultant/tax practitioner/advocate, take initiative to submit, such information to the tax 4
authorities of the State, in time, as may be required by the sales tax /WCT laws of the State. 5. The project should ensure that no TDS is effected by the client from the mobilisation advance. Mobilization advance is not subject to TDS as no transfer of property takes place at that stage. 6. The project should ensure that all the sub-contractors are registered with sales/ works contract tax authorities and also ensure deduction of TDS from sub- contractors' bills at prescribed rate, subject to exemption certificates as may be produced by the sub-contractors. 7. The project should also ensure that the TDS effected from the sub-contractors is deposited to the Govt. exchequer within the prescribed time limit and the evidence of such payments are preserved on record. 8. The project should ensure issuance of TDS Certificate to the sub-contractors in prescribed form, within the prescribed time limit. 9. The project should take initiative to collect TDS certificates from the client and keep a record of the same. 10. The project should, with the help of the local consultant/tax practitioner/advocate, assess the monthly/quarterly/annual WCT liability and arrange to deposit the same to the Govt. exchequer, after adjusting the amount of TDS deposited by the client. The project should also ensure that the payment is made before the due date. 11. The project should, with the help of the consultant/tax practitioner/advocate prepare sales tax/WCT Returns at prescribed interval and submit the same to the tax authorities on or before the due dates. 12. The project should send periodical reports to the CTC in prescribed format for information of corporate management. ASSESSMENT STAGE 1. Project to liaison with tax authorities and consultant/tax practitioner/advocate 5
Page 1 and 2: IRCON INTERNATIONAL LIMITED (A GOVE
Page 3: 1. Prices exclusive of WCT- In this
Page 7: ***** 7

Guideline on WCT - IRCON's INTRANET SYSTEM!!!

Create successful ePaper yourself

Delete template?

Save as template?