29 December 2012
What is WCT ? When it is to decucted from the bills . please explain can i deduct WCT from all the contractor Bill , Is their any exemption limit for deduction of WCT in a year
30 December 2012
WCT means Works Contract Tax. When property of goods transferred in execution of works contract with the help of labour and service components, it falls under the catagory of WCT.
Like Builing construction, Road, Dam, Power Station, manufecturing of shirts and so on.
As u know government has intention/power to levy tax on Sale of goods only. and In order to comply this constitutional requirement what ever labour/service portion invovled in contact shall be deducted to arrive at the taxable turnover of WCT.
As no stete clearly narrated the methology of determination of taxable turnover but with the help of various legal pronouncements Determination of taxable turnover under WCT becomes easy.
WCT is calculated only on the material involved in the contract. Without going into deep in the matter following dedctions are as follws: 1. Labour charges, Services charges 2. Machine hire charges being utilised in execution of WCT 3. Consumables Cost 4. Amount paid to sub-contactors 5. labour establishments charges with profit elements in labour and service element.......
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