Wct rate

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This query is : Resolved

Student (Querist)

10 March 2012 hi
A contract involves both material+ labour. A single bill is raised. What is the rate of WCT?
(state either Maharashtra or any other)

thanks.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

11 March 2012 Mr Kirti,
If the total value is less than Rs5 lakhs you need not pay any tax provided, there is no other sales. You can deduct the expenses made on labour,consumables,and services from the bill value and charge on the value of goods involved at the appropriate rates.If from your accounts the cost of labour and services and the profit applicable to that work can not be ascertained a fixed ratio on the recipts is also allowable as per rules(30% for civil works etc).On the balance amount,by splitting into the value of each goods involved,with profit,you can charge vat.If there are registered sub contractors to whom you have entrusted some part of work their bill value can be reduced before charging tax....MJK

Prakash Kochar

Prakash Kochar (Expert)

11 March 2012 You can also opt for composition method.
On gross turnover of sale i.e. contract value received you have to pay 5% tax if it is construction contrac, otherwise tax rate will be 8% for other than construction contract.
In this method you will be entitle for full setoff of taxes paid on purchases of capital assets and other goods not transferred.
On goods transferred setoff will be available 16/25 of input tax in case of contracts liable for 8% and
by reducing 4% of purchase price out of input tax where opted to pay 5% tax on gross contract value.

Regular or composition method can be opted by the dealer as per his choice. (Maharashtra VAT)

Student

Student (Querist)

12 March 2012 Thanks MJK sir & Prakash ji!!
could you pls. share your email id?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

12 March 2012 Mr Kirti,
You may contact me at mjkrishnamurthy@gmail.com....MJK

Prakash Kochar

Prakash Kochar (Expert)

13 March 2012 My mail ID is kochar.prakash@yahoo.com (Mob. 9850350854)