Work contract tax

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27 January 2016 Please Briefly explain Work Contract tax

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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27 January 2016 Works contract tax (WCT) is a tax imposed on a contract for work, such as assembling, construction, building, altering, manufacturing, processing, fabricating, installation, improvement, repair, or commissioning of any movable or immovable property.

WCT is based on the contracts for labor, work, or service, and not for the sale of goods; although goods are used to fulfill the contract. For example, when a contractor constructs a building, the buyer pays for the cost of the building, which includes the building material, labour