Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: form 3cd :: VAT RATES :: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: Central Excise rule to resale the machines to a new company :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: empanelment
 
 
Service Tax »
 10 most used services and how Goods and Services Tax will impact them
 System geared up for GST from July 1
  What is GST?
 Government allays fears on implementation of Goods and Service Tax
 GST pangs for 3 months only, people will adjust to new way of life soon
 GST, an old new tax
 Pay tax once on the input, deduct it from the output
 GST Network to begin accepting fresh registrations from June 25
 Indian GST is significantly unique, but is it better?
 GST example of national integration
 6 reasons you need not fear the GST regime

Service tax and other issues plague Corporation tender process
April, 02nd 2012

The past week has been tough going for the Coimbatore Corporation, which had to negotiate with contractors to ensure that they accept the bids to take up works.

Last week, the Corporation saw engineering contractors withdraw from the tender process, citing escalation in cost of materials and poor financial viability in taking up the projects at the present rates. Their grievance was that by taking up the projects, they would not be able to complete the work and only incur loss.

To substantiate their action, the contractors say that the price of bitumen has shot up by 15 per cent, steel by close to 40 per cent and blue metal by 20 per cent. The price of cement has also gone up. In short, there is huge price difference between the market price and the price mentioned in the Public Works Department's Schedule of Rates.

The contractors attribute the increase in price to power cut, which has pushed up the cost of production. Industries, big or small, are forced to increase the production cost to factor in the use of fuel to power machines. As for civil works, the contractors are unable to find adequate water for curing, which again they attribute to power cut.

Contractors say that to tide over the crisis, they are waiting for the new financial year, when the PWD will come up with the new schedule of rates, which will, to an extent, reflect the market price.

Corporation officials, however, asked the contractors to take up the projects, convincing them for the need for doing so. The contractors responded favourably for a few projects but not for all.

The Corporation also faced some challenge from lessees of Corporation assets, who opposed the proposal to implement service tax. The civic body, citing a Central Government order, asked all lessees to pay around 10 per cent of their lease amount towards service tax.

The contractors opposed the move saying they will incur loss. They even petitioned the Corporation officials seeking withdrawal of the tax. They say that they have quoted less than the tender amount to factor in the 10 per cent service tax.

This, according to sources, has forced the Corporation to cancel the tender and invite fresh bids. Sources say that the civic body is talking to the contractors to ensure a win-win situation.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions