19 May 2009
it is just like TDS. the payee has to deduct tax on certain specified payments eg civil construction. if you are paying any payment to contractor you have to deduct work contract tax on such payment @ 2% and it will be submitted to state govt. account. (not applicable on indl and huf)
19 May 2009
There is a section in the Income tax Act,1961 viz., 44AD dealing with a special provision for computing profits and gains of business of civil constructions. Other than that I haven't heard of 'works contract tax' in IT Act,1961. If you need to read section 44 AD, Pl log in to www.incometaxindia.gov.in
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