03 August 2010
I WANT TO KNOW THAT WHETHER WCT IS LIABLE ON JOB WORKS CONTRACT WHICH INCLUDED ONLY SERVICE PART & THE FIRM OPTED FOR LUMPSUM SHCEME IN VAT?
03 August 2010
Works Contract Tax applies when contract includes supply of matterial and installation/errection/commisioning etc specialised services provided by the vendor contractor.
In case the job work contract pertains only to services provision, then no VAT is payable. However, service tax at full rate of 10.3% is payable by a service tax registered dealer.
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