Works Contract Tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2010
What is Works Contract Tax?
18 June 2010
Works contract tax is a type of VAT, this applicable VAT for the dealrs doing works contract
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19 June 2010
WCT is a tax on transfer of property involved in excution of works contract.
For example, when a contractor undertakes to construct a building, materials like Bricks, cement, TMT Bar, stone chips, sand etc gets transfered to the contractee.
By a legal fiction, vide amendment to Art. 366 of the constitution, such transfer are treated as deemed sale, and States were given power to impose sales tax(now VAT) on such transfer.
It is a VAT, although popularly termed as WCT
For example, when a contractor undertakes to construct a building, materials like Bricks, cement, TMT Bar, stone chips, sand etc gets transfered to the contractee.
By a legal fiction, vide amendment to Art. 366 of the constitution, such transfer are treated as deemed sale, and States were given power to impose sales tax(now VAT) on such transfer.
It is a VAT, although popularly termed as WCT
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