wct

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Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2011 please tell me about WCT (Works Contract Tax Related Services).

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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24 July 2011 Mr Author,
Whenever you do a work involving use of some goods or material it becomes a works contract and attracts VAT law.Various works,such as house construction,plumbing,electrification,painting,installation and servicing of machinery etc come under this category.If no material is consumed during that work(i.e.the contractor is not supplying any goods and all the required items are provided by the clients, then it becomes pure labour service not liable for any vat tax. Here the vat will be levied on the value of material supplied only.
MJK

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2011 can client deducted WCT on sale invoice given by contractor when materiel and labor are use in work contract.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2011 Is input credit available for WCT in DVAT(delhi) vat Law.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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25 July 2011 If it is a composite contract where the labour and material are not specified separately then you have to apply both Service Tax and VAT on percentage basis and have to deduct TDS if the bill is above 30000