Wct

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2012 Hi Experts,
Please help me,

I want to Know what is work contract tax and on which types of contracts it is applicable ?

What is difference between WCT and TDS ?
Whether both TDS and WCT can be applicable on same contract ? if yes than what are criteria for that ?

Thanks in advance!!!!
Have a nice day.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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28 January 2012 Mr. Author,
Tax on transfer of property involved in a works contract(whether civil,electrical,mechanical,painting,interior decoration,printing of photography etc,ship, A/c,bus.or railway coach building and so on)is work contract tax. All government or semi govt and PSUs and some large industrial undertakings are directed to do tax deduction at source(TDS) while making payments to their contractors.After making tds a client will issue a certificate,in a form,on th basis of which,the tax payment by the contractor will be adjusted/reduced. While doing WCT to any private person or a firm there will be no tds and the contractor will pay to the govt required tax directly. TDS made by the client will be deposited to the govt.