Regarding work tax
ashwani kumar
(Querist) 14 January 2012
This query is : Resolved
hi
sir, i am face some problem i.e my client is civil contractor at chandigarh and have received a civil contract for construct Hospital at chandigarh.
That the employer of my client at Mohali and registered with sales tax deptt. at Punjab.
After 2 years the employers says that he is going to deduct work tax for work at chd.
My client registed at chd. sales tax deptt. and purchase all materail from chd. and take all inputs for purchase of material from chd.
If employers deduct work tax and deposited at Mohali (Punjab) then my client not take input of work tax in chandigarh.
If any written material for get befit for this. In my view if employer should have registered same state and work same state and liabe to deduct work tax.
Pl. suggest me how we overcome this problems
regards
ashwani
Sankaranarayanan
(Expert) 14 January 2012
What is your nature of business, r u doing building construction or other work. R u avail input tax , if you signed as agreement under works contract then you r not eligible to claim input tax. more over interstate works contract are attract higher rate of tax subject to material transport form principle place to other state working place
R K JAIN
(Expert) 14 January 2012
Tax can be deducted in the state where the works contract is executed. There is no tax deduction in the case of inter state works contract. If the hospital is constructed in chandigarh then the tax can be deducted in chandigarh only and not in Punjab since there is no construction activiity in the Punjab.There is no need that that the contractee should be registered he can deposit the tax on behalf of the contractor. Tax deduction and depositing in Punjab for the works contrat in chandigarh is highly illegal and against the provision of law.
Raj Kumar Makkad
(Expert) 14 January 2012
I think Ravinder has clearly described the legal position relevant for your case.
prabhakar singh
(Expert) 15 January 2012
NONE CAN, I THINK, DISPUTE THE LEGALLY SPOKEN WORDS OF MR. RAVINDER KUMAR JAIN.
ashwani kumar
(Querist) 28 February 2012
sir,
how will we satisfy without any written material not to deduct work tax for work at chandigarh . and deposited in mohali.
Mr. Ravinder jain absolutely right but sir provide me any material for face the problem of my client like as any section or provision of work tax els
regards
ashwani
R K JAIN
(Expert) 10 September 2012
Pl see the judgment of our Punjab and Haryana High Court in the case of BSNL delivered on 13.8.2008 while disposing off the CWP No. 19579/2002.
M/s. Y-not legal services
(Expert) 14 January 2012
