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  • IX Works Contract: 1.what Is Works Contract and in What Manner It Is Taxable ?

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    Mysore Ranganath
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    A works contract is an agreement for civil works, construction, installation, or processing of movable or immovable property. Under a works contract, the dealer is liable to pay tax on the sale value of goods involved at the scheduled rates, regardless of whether the property is transferred. However, a dealer can opt to pay tax at 4% of 70% of the consideration received under a works contract. A works contract is not taxable if no transfer of property is involved in executing the contract.

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    Works contract essentials

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    13 Works Contract

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    A works contract is an agreement for civil works, construction, installation, or processing of movable or immovable property. Under a works contract, the dealer is liable to pay tax on the sale value of goods involved at the scheduled rates, regardless of whether the property is transferred. However, a dealer can opt to pay tax at 4% of 70% of the consideration received under a works contract. A works contract is not taxable if no transfer of property is involved in executing the contract.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    16 views1 page

    IX Works Contract: 1.what Is Works Contract and in What Manner It Is Taxable ?

    Uploaded by

    Mysore Ranganath
    A works contract is an agreement for civil works, construction, installation, or processing of movable or immovable property. Under a works contract, the dealer is liable to pay tax on the sale value of goods involved at the scheduled rates, regardless of whether the property is transferred. However, a dealer can opt to pay tax at 4% of 70% of the consideration received under a works contract. A works contract is not taxable if no transfer of property is involved in executing the contract.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    IX Works Contract

    1.What is works contract and in what manner it is taxable ?


    Any agreement for execution of works relating to civil works, construction, Installation, deferred contract. When a contract fulfilling the above conditions is exec uted by the dealer, he is liable to pay tax on the sale value of goods involved in the execution of works contract at the rates provided in the s chedule. It is immaterial whether transfer of pr operty on suc h goods occurred in the same form or otherwis e. However a dealer executing receivable. works contract c an pay tax by way of c omposition at four perc ent on seventy percent of the value of consideration received or manufacture, fitting out, or processing, fabrication, modific ation, is er ection, repair a or improvem ent, valuable

    commissioning of any movable or immovable property for cas h/ payment other consideration works

    2. When a transaction under Works Contract is not taxable?


    When no transfer of property is involved in the execution o f works contract, then ,no tax is c hargeable.

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