Work contract tax.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2012 My deptt. being a central govt. deptt. get their feild activities like construction of drifts, drilling etc. and other engg. works. Is work contract tax is deductible from the contractor's bill besides tds under section 194-c ? If yes, what are the rates for f.y. 2010-11 ? what are the other requirements like TAN etc for deposit of wct in govt. account?
Please suggest.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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22 March 2012 Mr Author
Yes,work contract tax i.e.VAT is deductible from the bill payments by the Central govt organisations.It is generally 4% of the total amount,or the actual liability rate specified by the contractor
and permitted by the Department. The contractor should be registered under VAT Act of respective state and his TIN # should be quoted. A certificate of TDS made is also to be issued.....MJK