Work Contract Tax
This query is : Resolved
16 August 2010
What is work contract Tax. what is the difference between VAT & WCT.
What is the whole procedure of WCT under delhi VAT.
What is the whole procedure of WCT under delhi VAT.
16 August 2010
Works contract is applicable for work contractors for those work cannot segregate the Materials and labour
Message likes :
1 times
17 August 2010
In fact WCT in Delhi is VAT applicable in the case of work contracts, i.e. contracts involving material supply and activities of erection/commissioning/labour etc.
As per Delhi VAT, in the case of work contracts, tax is payable only on material portion. In case the proportion of material is not determinable, then a standard deduction for labour portion may be reduced from value of work contract and remaining amount is considered as material portion on which DVAT is payable. Like in the case of civil work contracts, there is a 20% deduction allowed for labour portion and hence DVAT is payable on 80% of the work contract value if the material value can not be identified with accuracy separately.
As per Delhi VAT, in the case of work contracts, tax is payable only on material portion. In case the proportion of material is not determinable, then a standard deduction for labour portion may be reduced from value of work contract and remaining amount is considered as material portion on which DVAT is payable. Like in the case of civil work contracts, there is a 20% deduction allowed for labour portion and hence DVAT is payable on 80% of the work contract value if the material value can not be identified with accuracy separately.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Should I report my US salary for January, February, March in Schedule FA?
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
