WCT

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Gaurav Manchanda (Querist)
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01 September 2009 Can anybody tell me about Works Contract Tax (WCT), on what type of contracts WCT is deductible and at what rate??????

CP Ram

CP Ram (Expert)
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01 September 2009 WCT TDS should be deducted on those contracts where the contractor uses his own material and labour to complete the contract.

WCT TDS rate under the MVAT Act:

If the WCT contractor is Unregistered Dealer then, WCT TDS should be deducted @ 4% if the amount of contract exceeds Rs.500000.

If the WCT contractor is Registered Dealer then, WCT TDS should be deducted @ 2% if the amount of contract exceeds Rs.500000.