Works Contract Tax

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Prakash Khandelia

Prakash Khandelia (Querist)
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19 June 2008 Plz clarify the basis of charging vat or wct in case vendor invoice is inclusive of Material and Labour

CA. Vineet Grover

CA. Vineet Grover (Expert)
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20 June 2008 Hi Praksh,

If the nature of work is such that it include both the material and labour then WCT shall be invoked and dedcuction @2% for registered dealers and 4% for unregistered dealers shall be levied.

VAT is involved when there is involvement of only goods.

Rgds/
Vineet